Airbnb gives property owners the power to make money with their unused spaces, with the opportunity for huge financial gains. Indeed, many of the platform’s successful stories earn tens of thousands of dollars a year.
However, if you’re new to the field of Airbnb hosting, getting started may feel like a daunting process. From creating listings, deciding on price, and navigating feedback, there’s a great deal to think about.
After all, starting a successful Airbnb business involves more than just listing a property; it requires careful planning, consistent effort, and strategic marketing.
Thankfully, that’s where we come in. Below, you’ll find our complete guide to help you get started on your Airbnb venture, so that you can start generating a passive income today.
What is Airbnb?
Airbnb was first established way back in 2008 by a group of struggling friends in San Francisco. The group decided to rent out air mattresses in their apartment to attendees of a design conference. They called this service ‘AirBed & Breakfast,’ including a place to stay and breakfast in the morning.
Their idea quickly gained traction, and by 2009, they’d established a website called Airbnb (short for Air Bed & Breakfast). This allowed people to rent out extra space in their homes to travelers, separate from the traditional services offered in hospitality. Since then, it’s no exaggeration to say that Airbnb has effectively changed travel as we know it.
These days, when people jet off on their family adventures or business trips, they don’t even need to book hotels, or more conventional forms of accommodation.
Instead, all you need to do is hop on to Airbnb, where you’ll find a plethora of private vacation rentals. These essentially function as homes away from home, with all the amenities to match, featuring a price that’s right for every guest.
Understandably, this has proven hugely popular.
Airbnb is now one of the most-used travel platforms, with:
- Over 150 million users
- More than 5 million hosts
- Close to 8 million active property listings
- Properties in more than 100,000 cities
- A company valuation of approximately $113 billion
It’s a smash hit - and it’s not too late to claim your slice of that success. Let’s see how it’s done.
How to start an Airbnb business: Step-by-step guide
Starting an Airbnb business is one of the best ways to make money from unused space in your home. We’ve broken the whole process down into a series of simple steps to start working through.
From handling deciding on a space to marketing your rental, you’ll find everything you need right here.
1. Check legal requirements and compliance
First of all you’re going to need to do some research into the legal side of things. This involves figuring out your rights and obligations before renting out your space.
Though it’s considered to be one of the more complicated and time-consuming parts of the process - it’s necessary. Luckily, there are lots of resources out there to help, including a wealth of online communities to teach you the basics.
Here are some areas to focus on during your research
Business registration
You may want (or need, depending on location) to set up a business entity before becoming an Airbnb host. This could mean setting up a sole proprietorship or LLC, for instance.
Why? Well, aside from the fact that it’s a legal obligation in certain places, making your own business for Airbnb also has other benefits.
It can help you manage taxes more easily and even save money. Plus, it provides legal protection if you need to deal with future property accidents or problematic guests.
Restrictions
All hosts must comply with Airbnb’s terms and policies. There are also health and safety standards (which differ from place to place) to abide by, coupled with local laws and regulations.
Some cities actually have strict restrictions about how you use Airbnb. They might require you to obtain a permit or license before you host, for example. There are even some places where Airbnb rentals are banned outright.
We’ll talk more about those later on, but suffice to say you’ll certainly want to be up-to-date with the laws in your local area.
Taxes
Again, depending where you’re based, you may have various tax obligations to comply with, once your Airbnb listing starts bringing in money. Make sure you’re aware of these and keep up with declarations and payments to avoid problems.
2. Understanding Airbnb’s policies and systems
Next up, you’ll need to familiarize yourself with Airbnb’s policies and regulations.
Specifically, you’ll want to look into how Airbnb itself works in terms of cancellations, refund policies, and so on. The more you know about the platform, the fewer issues you’ll run into along the way.
One of the most important Airbnb policies relates to accurate listing information. As a host, you need to make sure all the listings you create are truthful, detailed, and contain up-to-date information. This means including clear photos of the property, a description of the space, amenities, and the location.
If images or descriptions are considered to be misleading, this can lead to penalties, or even being removed from the platform.
As well as accurate listing information, you also need to make sure to set clear house rules. Hosts are required to clearly communicate guidelines for prospective guests to follow. These rules may include policies on smoking, pets, parties, noise levels, etc…
If you need more information about Airbnb’s policies, fortunately, there’s an extensive Help Center section on Airbnb. It’s packed full of guides, tutorials, and explanations. There, you can learn about everything from insurance to fees (Airbnb takes a 3% cut of all bookings, by default).
3. Choosing a place to rent
It can be a full property or just part of one – some people make plenty of cash renting guest bedrooms, for example.
For example, if you own one property, you can rent out a part of it for prospective guests. Or, you could set off on your own adventures and rent the space while you’re away to make money while traveling.
Meanwhile, if you’re lucky enough to own multiple properties, your guests can reside in one while you’re occupying another.
Bonus points if you own a property that’s in close proximity to attractions. Choosing a property that’s near popular tourist destinations, local landmarks, business hubs, or cultural hotspots is a great opportunity for prospective hosts.
Typically, and logically, whole home rentals tend to get more interest and earn more for hosts. But there are still strong levels of demand for individual rooms and shared spaces.
So don’t be discouraged if you’ve only have a single room to rent.
❓ What makes a good Airbnb property?
Lots of people mistakenly think their home isn’t good enough for Airbnb. Or, they think that they won’t get any bookings because they don’t live somewhere ‘fancy,' like Miami Beach or Downtown New York.
Of course, it does help to be in a thriving hotspot. It’s also handy if your place is spacious, cozy, beautifully decorated, and equipped with the latest appliances.
But you don’t need to have a high-end home to start an Airbnb business. Nor do you need to live in a fancy or touristic area. This is a common misconception that often deters prospective hosts.
The truth is, people book Airbnbs everywhere, from tiny towns and rural communities to cities, big and small. So, provided your space is clean and safe, there’s always a chance someone will want to book it.
4. Hosting and managing your space
Next up – what kind of host do you want to be?
There are two options here. You can be a hands-on host or hands-off.
Hands-on hosts are pretty much in charge of everything related to their properties. They speak with guests, manage bookings, clean up, and take action to meet guests’ needs.
Otherwise, you can go the hands-off, laid-back route. That means handing off some of the hard work to others, like property management firms. They’ll do things like promoting your listing and liaising with guests on your behalf (for a fee).
5. Creating your Airbnb account
At this stage, you should have all the knowledge you need to get going and start making money from home through Airbnb.
So, go ahead and set up your account. It’s quick and easy – just enter your details and agree to the site’s terms and conditions.
You’ll need to pass an ID verification check, too, as well as set up your payment info so you can collect your earnings and pay the relevant fees.
6. Uploading photos to Airbnb
With your account set up, you can get to work on your property page.
This is important. The listing page is where prospective guests will find out all there is to know about your property. The info you provide could convince them to make a booking, or, conversely, put them off!
So, it's important to get this step right, including as much information as possible and highlighting the benefits of your space.
Understandably, people want to see pictures of the places they choose to stay in. The more photos you can provide – especially high-quality ones that paint your place in the best light – the better.
Here are some things to consider when photographing your property:
Natural light
When taking photos of your property, the best time to do this is when there’s plenty of natural light present. This makes spaces look more inviting and spacious. Think morning or late afternoon, when the light is softest.
Full spaces
When uploading images to your Airbnb page, make sure to include plenty of wide-angle shots that showcase the entire room. Guests want a feel of the whole space before deciding to stay, so make sure you’re giving the full layout.
You should also take photos from different angles to give guests a complete view of each room. This will help give a better picture of the space’s size.
Key spaces
As well as including wide-angle shots, you’ll also want to take additional photographs of the key spaces in your home. Focus on the most important areas, such as the living room, bedrooms, bathrooms, and kitchen.
If these rooms have any unique or standout features, (idyllic views, a rustic fireplace, or a cozy reading chair) be sure to take individual photos of these.
Cleanliness
Though this goes without saying, you need to make sure your space is spotless before photographing. This involves decluttering the environment, and removing any personal belongings you have lying around.
Camera
If possible, it’s always best to photograph using a high-quality camera, like a DSLR or a high-quality smartphone camera, so that the images are as sharp and clear as possible. Avoid pixelated or blurry images, as they can be off-putting for prospective guests.
Show the neighborhood
Perhaps you live in an area with unique or idyllic attractions nearby? If so, why not take a few shots of the surrounding areas. This can help give guests a better feel of the neighborhood they’re staying in, and a sense of the experience they’ll have outside your property.
Edit photos
Oftentimes, photos will need a little assistance to make them shine. This means honing your editing skills to bring out the best in your images. Don’t worry, you don’t need to be an expert by any means.
Some basic editing tools, like adjusting brightness, contrast, and saturation, can immediately improve the overall look of your photos.
On the other end of the spectrum, make sure to avoid over-editing your photos, to the point where they present an unrealistic representation of your space.
Is Pixlr the best photo editing app available today? Get the low down and learn how it compares to rivals by reading our in-depth review of Pixlr’s features, pros and cons.
7. Imagine your ideal guests
Next up, you’ll need to think about the sort of people who might like to stay in your place. They may be business travelers, outdoorsy types, families, or couples.
Make sure to write a property page text that appeals to your target audience. For example:
- Families: Let families know about any handy extras the property includes, like cots, high chairs, toys, and baby-proofing options. Make sure to mention safety features like gates or lockable cabinets too.
- Couples: Appeal to couples by providing romantic touches like a comfortable bed, a bathtub, or a view. You could also include some extras, like candles, soft lighting, or some luxury bath products. If there are any romantic attractions nearby, such as walks, be sure to mention these too.
- Business travelers: If your Airbnb listing is a hotspot for business travelers, make sure to include a fast Wi-Fi, a comfortable desk, charging stations, and convenient check-in/check-out options so they can come and go as easily as possible.
- Groups: If your Airbnb is tailored for larger groups, make sure to list how many people your listing can comfortably accommodate. Take plenty of pictures of large dining areas, common spaces, and multiple bedrooms.
8. List your amenities
Your property page is your chance to highlight all the aspects that make your property great. That might include its location, cleanliness, amenities, kid-friendly nature, etc…
As well as basic amenities that most people expect from Airbnb locations, such as Wi-Fi, heating/air conditioning, parking, and basic kitchen essentials, you’ll also want to add in any additional amenities that make your property special.
If your property has unique features, such as a hot tub, fireplace, pool, or outdoor seating, make sure to highlight them clearly in the listing. Special amenities can help your listing stand out from the crowd.
As well as this, If you have entertainment options such as a TV, streaming services (Netflix, Disney+), board games, or a music system, make sure these features are listed, (especially if your target audience is families or larger groups of people).
As we mentioned above, you want your property description to be as detailed and accurate as possible. So, don’t just check the boxes, instead, describe your amenities in detail. For example, instead of just saying ‘Wi-Fi,’ mention ‘High-speed Wi-Fi suitable for streaming and work.’ This gives guests a clearer idea of what to expect.
Likewise, when discussing specific amenities in certain rooms, like the kitchen, make sure to list all the list key appliances (e.g. ‘fully equipped kitchen with brand new appliances, microwave, and coffee maker’).
Finally, you’ll also want to regularly update your amenities list. As you add new features or improve different aspects of your property, make sure to update your amenities list accordingly. This will let guests know exactly what they’re getting if they decide to book.
9. Lay down the ground rules
To reduce your risk of hassle and guest-related problems, it helps to set some ground rules. These can include clear check-in/check-out times, no smoking and no pets policies, and so on.
You’ll also set a price for your listing before it goes live. Airbnb has a nifty ‘Smart Pricing’ tool that can do this for you, if you like. It’ll automatically adjust your listing’s nightly rate up and down in line with demand and competition.
Or, you can take full control and set whatever price you decide on. Check out rates of nearby properties similar to yours to get some ideas.
Lastly, availability. You might want your property available for bookings 365 days a year. Or, there might be some dates where it’s not possible for you to host. Adjust your Airbnb calendar accordingly.
10. Set your booking preferences
For the next set, you’re going to need to set booking preferences. There are a few different options available for hosts, including:
- Instant book: Decide if you want to enable Instant Book, a feature on Airbnb which allows guests to book without prior approval. This can be a good option for first-time hosts who want to increase bookings and reviews.
- Minimum/Maximum stay: You’ll need to set a minimum number of nights per stay or a maximum stay, depending on how long you’re happy for guests to stay in the property. This can extend from a few days to a few months. Bear in mind some locations have certain restrictions like ‘90-day rules.’
- Booking Settings: You can also decide whether or not you’re happy for guests to cancel for free, or if you want to establish a stricter cancellation policy.
11. Handling your first booking
With the property listing all setup, it becomes a waiting game until your first booking comes in.
This may take a little time. Or, you might have interest right away. It all depends on the amount of demand.
When the first booking request does arrive, you’ll need to be ready.
Try to respond to interested travelers promptly to secure bookings. Answer any questions people might have, and make sure they’ve got the info needed to find and access the place.
Ensure it’s all clean and ready to go upon their arrival, too. You’ll want to make the best possible first impression to secure a positive review, because this will help you obtain more interest and bookings in the future. This means double checking all the amenities listed in your Airbnb profile are functioning properly (including Wi-Fi, appliances, entertainment etc…). Make sure your bedding and towels are fresh and comfortable.
In addition to this, you also need to double-check that safety features (such as the fire extinguisher, smoke detectors, etc…) are functioning properly before your guests settle in. This is essential for your adherence to Airbnb’s safety standards.
Beyond the first booking: how to build your Airbnb business
Whether you’re treating Airbnb as a simple side hustle or serious form of full-time income, you’ll likely want to get as many bookings as possible.
Stats show that the average US Airbnb is rented out a little over 50% of the year. If you can get close to that figure, you should be able to make quite a lot of money this way.
Here are some tips and tricks to grow your Airbnb business.
Promote your listing
Airbnb advertises your property for you. But, you’re still free to promote it on other platforms. You can post about it on social media, for instance, team up with influencers, or even create ads.
Instagram can be a great option for this, as you can post stories to give followers a behind-the-scenes look at your property. Reels are another great opportunity for showing quick, engaging clips of your space or showing off nearby attractions.
Work your way to Superhost status
“Superhosts” have been on Airbnb a while and proven that they’re trustworthy and responsive. They get perks, like more exposure for their listings. To become one, you’ll need 10+ bookings, a 90%+ response rate, and a 4.8+ overall rating.
In addition to this, you must have zero cancellations. Superhosts have not canceled any guest bookings except for exceptional circumstances (Airbnb has specific policies in place that protect guests from cancellations).
Engage with guests
Respond to guest messages quickly. Be courteous and friendly. And try to ensure every stay is as pleasant as possible. Do all that, and you’ll have a much better chance of earning 5-star ratings and repeat bookings.
Check out our guide to keeping customers happy.
Add more listings
This one depends on your budget. But, if you’ve got the money available, and want to expand your Airbnb empire, you could invest in more properties to list. The more rentals you can offer, the higher your earnings potential will get.
Seek expert advice
There are plenty of successful Airbnb business people willing to share their secrets with budding hosts like yourself. Join Whop’s vast selection of communities and training groups to work your way to success.
How Whop can kickstart your Airbnb venture
While our guide provides a good starting point for establishing your Airbnb business, there’s really no better way to guarantee its success than joining one of Whop’s expert driven communities.
Whop's Discover page hosts dozens of dedicated Airbnb experts, who can transform your spare space into a lucrative hosting opportunity. You’ll learn to unlock financial freedom by turning empty spaces into thriving income sources.
Courses feature a wide range of tools to help you on your journey, including turnkey property management tools to take you from setup to operation.
Take the ‘Airbnb 101 Crash Course,’ for example. Developed by creator John, who’s made a staggering six-figure income through Airbnb. His course acts as a blueprint to help others escape the 9-to-5 grind and build a scalable, profitable Airbnb business from scratch.
The crash course contains one on one coaching calls with John, as well as access to over five hours of course material containing tried and tested Airbnb strategies. You’ll also have access to a private Discord, filled with like minded individuals just like you, who are ready to kickstart their Airbnb business today.
Airbnb101 is just one of many expert-led courses found on whop. Once you sign up, you’ll be given direct access to a wealth of resources, including:
- Ebooks
- SEO tactics
- Marketing templates
- Guides
- Social media post designs
- Email templates
- Live training workshops and webinars
- And much, much more!
With seasoned experts and a plethora of educational resources to delve into, join Whop today, and take the first steps to Airbnb success.
FAQ
What about Airbnb insurance?
You may want to take out insurance to protect your property, it contents, and yourself from any liability claims, should issues arise during a guest’s stay.
You may even have to invest in insurance before you’re legally allowed to become a host. That will depend on local laws in your area.
But do note that Airbnb offers an insurance package of its own, in the form of AirCover. It’s free for hosts, and it provides various benefits, such as $3 million of damage protection and $1 million liability cover.
How much money could I make with Airbnb?
That all depends where your property is located, how desirable it is, and how much you’re willing to invest in giving guests the best experiences.
On average, US hosts earn around $14,000 a year from their Airbnb listings. But there are many earning much more than that, especially those with properties in prime locations, where nightly rates can average $500 or more.
What if Airbnb is restricted in my location?
Earlier on, we mentioned that certain cities have restrictions that limit your usage of Airbnb. For example:
- New York City: Hosts are not allowed to rent out entire homes for a period of less than 30 days.
- Barcelona: Hosts have to obtain licenses before they can rent out their properties.
- Paris: Owners can only rent out their homes for a maximum of 120 days each calendar year.
- San Francisco: Hosts must live in their rental homes for at least 275 days of the year (leaving up to 90 days for rentals).
These rules are subject to change, and it’s important to keep up with the latest developments in your local area.
If there are restrictions in place in your location, you’ll need to abide by them. You may also have an easier time listing your property on an Airbnb alternative, instead. Examples include:
- Booking.com
- Vrbo
- HouseStay
- TripAdvisor
- FlipKey
What percentage does Airbnb take?
Airbnb charges hosts a service fee that usually falls between 3% and 16% of the booking subtotal. However, the exact percentage depends on several factors, including the length of stay, regional regulations, cancellation policies, and whether the property is listed as luxury.
