Guest author: James Pointon is a Commercial Manager at OpenAgent.com.au, an online agent comparison website helping Australians to sell, buy and own property.
You’ve most likely heard of Airbnb in the past. Maybe you’ve stayed in one or you’ve even considered becoming an Airbnb host. Since their launch in 2008, there have been over four million listings across 190 different countries. Despite their massive growth, it’s not too late to hop on the bandwagon.
If you’re weighing up renting and buying, Airbnb might make owning a property seem more attractive. You can list spare rooms or your entire home on Airbnb making significant additional income each month. If paying off a home loan has been a concern associated with buying, Airbnb income may help to ease the burden.
How much money can you make with Airbnb?
Insights into earning potential with Airbnb have shown that even in areas of Australia with a lower occupancy rate, you could make up to $3000 month . For instance, the occupancy rate in Tamworth is only 42%, yet, the potential monthly revenue for Airbnb hosts is over $3000.1
There are a range of areas around NSW that have been trending . For instance, Wagga Wagga has seen a 289% increase in bookings year-on-year. In Jindabyne, the average daily rate sits at $346, making the earning potential per month a whopping $3716. Other trending areas include Blackheath, Corowa and Mudgee.2
It’s clear that you can make a considerable income as an Airbnb host. If you’re listing a spare room rather than an entire home, your earning potential is restricted. However, if you’re in a prime location, Airbnb might be an alternative to finding a long-term tenant. You might even consider listing your entire home during times when you know you’ll be away or you have a friend or family member you can stay with.
How do you get started with Airbnb?
The first thing to consider with your Airbnb is how you’ll design the space. It’s important that you declutter and remove any personal items. In order to attract more guests, you want to create a space people can imagine themselves staying in. This might involve adding unique artwork and accessories to create a curated experience. However, avoid making the design too personalised since this might deter some potential guests.
Once you’re happy with your interior, all you have left is taking high-quality photos and writing an engaging description. You might want to consider hiring an interior or editorial photographer so that you can showcase your space in its best light. In terms of the description, make sure to highlight your Airbnb’s unique features. This might be the extra necessities you offer or the easy access to tourist attractions.
Of course, there will be maintenance involved after your listing is live. However, if you stay aware of what local competitors are doing and what your guests are suggesting, you’ll be off to a great start in running a successful Airbnb with your current home. Make sure to consider things such as your own safety and security, any additional insurance requirements, the potential property damages and short-term letting regulations in your state.
1 Airbnb data and holiday rental insights sourced from www.airdna.co as of March 2019. Results may change.
2 Trending areas sourced from www.openagent.com.au/blog/how-to-run-a-successful-airbnb