These and other articles are part of our Airbnb Super Host Series. If you haven’t yet made the Airbnb leap, go sign up to see what it’s all about. We are pretty awesome when it comes to Airbnb, and we want to share all our experience with you. But, there are others out there who are just as, if not more awesome than us. Like Jasper Ribbers for instance, who wrote the definitive guide to Airbnb hosting.This is a great one-stop shop for Airbnb hosts. But let’s get started with today’s Airbnb tip!
“Glenn, how much do you make on…um…what’s that website called? That bed and breakfast thing?” Marcus asked me as we walked to work one day.
“You mean Airbnb?” I responded.
“Yeah, that thing, I can’t keep up with kids and their gadgets these days,” Marcus said, clearly unnerved by what he, at that point, didn’t understand.
“Well, for my primary residence I rent out a room. And, summer months are much better than winters ones, but I average about $620 a month.” I said calmly.
“That’s amazing, how much do you think I could earn?” Marcus responded eagerly.
Marcus isn’t alone. Often we hear of an idea, like Airbnb, think it’s a possibility, and then file it away and forget about it. Today is different.
We are going to show you exactly how to get this idea off the ground: Give it a number!
Airbnb income potential is dependent on your location, property type, time of year, amenities, and proximity to local attractions.
A two-bedroom condo three miles from Disney will fetch a different price than a trailer in Girdwood, Alaska. Know what I mean?
Timing is also important to consider. In Montreal, I earned over $3000 for a condo rental in the downtown core during August 2015. That same condo in October only brought in $1200.
But today we are here to demystify the Airbnb income potential with four powerful tools. Use them to easily find out your number, and get started hosting on Airbnb.
Airdna is an amazing tool that you can use free or charge. Airdna provides listing analytics to people like you by tracking the daily performance of over 2 million Airbnb listings.
This website tracks all Airbnb listings across 5,000 cities worldwide. Not only will Airdna give you an idea of how much you can charge, but will also give you occupancy rates, seasonal demand, and typical amenities.
Check it out now for your city’s Airdna.
Another great income tracking mechanism is to search for your city on Airbnb itself. Search your particular city, input random dates, and see the price range graph at the top of the search results.
View the results by map and then zoom into your particular position in the city. What are others around you charging?
The only issue with this is it doesn’t account for seasonal price fluctuations. Maybe there is a big Taylor Swift concert the same day you chose. This will affect pricing. So do this exercise three or four times picking different dates.
Another fun exercise is to see what local hotels are charging. Go to a popular hotel booking site such as Expedia or Hotwire to see what various hotel chains are charging in your area.
Although you should never base your price on hotel prices, it will give you an idea of the decision consumers are making when choosing between Airbnb or hotels.
There is an ongoing debate about whether you should price high or low when you’re first starting out on Airbnb. Many people believe pricing low devalues your property and scares people off.
We disagree. For your first few bookings, it’s better to get renters in and reviews flowing than to earn a little extra cash. Bargain hunters will find your place easier if you price at the lower end of your market.
Airbnb also has an awesome pricing tool that will tell you exactly what you should charge based on several factors. This is a great way to check out your current market rate based on your location, property type, and time of year. This feature is available in the pricing section of your listing dashboard.
“Glenn!” Marcus ran into my office the morning after our infamous website-thingy conversation.
“I checked out Airbnb last night, and there are dozens of properties around me, and one of the people I know very well. I went immediately over to their home to chat with them. They make an extra $1100 a month by renting out their basement apartment.” Marcus repeated the number a few more times, clearly excited about the prospects of supplemental income.
“I am going to list my treehouse tonight” Marcus concluded.
“What?” I almost dropped my coffee as I swung my chair to face him.
“Just kidding, but seriously, people rent out treehouses” Marcus smiled.
Now that’s something I didn’t know about Airbnb. Well played Marcus.
What’s your income potential? If you figure it out, share it with the community below. Add to the comments your specific location and how much you can potentially earn on Airbnb. Let’s have some fun with this!
Glenn Carter is a sharing economy expert and is sharing his passion for side income through new digital platforms with his readers.