Make MONEY WITH AIRBNB: ADVANTAGES AND DISADVANTAGES

Undoubtedly one of the most successful ways to get extra income lately is to put a room or even a full apartment for rent, through pages that relate travelers with the people who manage the accommodations. The best-known platform is undoubtedly Airbnb, and we will see the advantages and disadvantages of making money that way.

Legal and administrative aspects

In theory, one of the main advantages of renting a room or a flat on Airbnb is that it is straightforward: just register on the platform, publish some photos of what you rent, choose the prices and post it. Hopefully, travelers will start contacting and rents will be closed, entering the corresponding money through the platform.

But there is a small print. On the platform, Airbnb indicates that it is the responsibility of the advertiser to verify that it is complying with the regulations of the country and city where it operates. In case of not doing it and having problems with the administration, Airbnb disregards (but charges its equal commission). In many cities the regulations prohibit renting tourists if you do not have the corresponding license. Therefore, before launching to publish on Airbnb, you have to look carefully if it is allowed and in what conditions.

Another important aspect is who has the right to rent. It is one thing to be the owner of the house, and quite another to be a tenant. In most rental contracts it is specifically prohibited to sublet, and Airbnb can be considered a sublease.

Finally, we must understand that the income should be declared to the Tax Agency, and pay the corresponding IRPF. That would also imply that all the legal requirements to rent are met.

But you have to take into account certain limitations on income:

There is a lot of competition, not only from the hotels and hostels, but rather from the other assets available on Airbnb, so the prices are usually not very high, and the income potential is limited.

In many cases, the influx of travelers has a high seasonality, so that revenues are very variable during the year.

Practical aspects

One of the significant advantages of making money with Airbnb is that it can be combined with a job at home since it is an activity that occupies relatively little. It is necessary to hand over the keys to the guests, clean up after each visit and little else. In case of renting only rooms, the inconvenience is minimal if you work at home.

But, it is necessary to be available, and that without a doubt is the great inconvenience of the system. The travelers arrive at variable hours, sometimes they delay several hours or arrive the following day, sometimes they have to leave at early hours, etc. This forces to have high availability, and can suppose to sacrifice many things in personal life. I know several people who have had this type of activity and regularly have these problems. Keep in mind that most of the business is done over the weekend, which is when one usually makes more social and personal life.

Income potential

Airbnb allows you to enter significant amounts of money throughout the year. One of the significant advantages of the platform is that it is well known, international and that therefore many travelers use it, which significantly increases the chances of renting the site.

But you have to take into account certain limitations on income:

There is a lot of competition, not only from the hotels and hostels, but rather from the other assets available on Airbnb, so the prices are usually not very high, and the income potential is limited.

In many cases, the influx of travelers has a high seasonality, so that revenues are very variable during the year.

Practical aspects

One of the significant advantages of making money with Airbnb is that it can be combined with a job at home since it is an activity that occupies relatively little. It is necessary to hand over the keys to the guests, clean up after each visit and little else. In case of renting only rooms, the inconvenience is minimal if you work at home.

But, it is necessary to be available, and that without a doubt is the great inconvenience of the system. The travelers arrive at variable hours, sometimes they delay several hours or arrive the following day, sometimes they have to leave at untimely hours, etc. This forces to have a great availability, and can suppose to sacrifice many things in personal life. I know several people who have had this type of activity and regularly have these problems. Keep in mind that most of the business is done over the weekend, which is when one normally makes more social and personal life.