Written by: Jorge Contreras, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
“Air Bed and Breakfast” or Airbnb is a popular online platform where guests can rent other people’s properties. This amazing platform exists as a space-sharing model and is now becoming one of the most essential parts of modern travel.
But don’t get me wrong, Airbnb is not only popular among travelers and “staycationers”. It has been the talk of real estate investors as well because of its earning potential for those looking to earn extra from their properties.
But what if you don’t own a property and still want to be a host?
Well, here’s everything you need to know about Airbnb and how to earn from it, even without owning property or spending too much money.
How it all started
Airbnb was created by two industrial designers named Brian Chesky and Joe Gebbia back in 2008. At this time, they had just recently moved to San Francisco and couldn't afford to pay rent for their apartment. They thought they could earn extra by renting out their space to people who couldn’t find hotels while attending nearby trade shows.
They set up air mattresses in their loft’s living room and cooked homemade breakfast in the morning for their guests. This was the humble beginning of what is now one of the biggest online property-sharing platforms in the world.
Surviving the pandemic
However, a lot of things changed when the pandemic started, and it included travel as we knew it. Most people believed that Airbnb would not survive and that it would become another business casualty of a worldwide health crisis. But the complete opposite happened.
In fact, Airbnb has now become the future of travel for people looking for places to stay longer while on vacation. This is because most employees transitioned to working remotely and this setup allowed them to travel and work at the same time.
Why people prefer Airbnb over hotels
Not surprisingly, the pandemic has added doubts to people who want to start their own Airbnb business. Some folks think that this boost is just temporary and that the space-sharing platform will be gone as people will always prefer hotels over Airbnbs. But that is far from what is currently happening.
In fact, here are 3 reasons why most people prefer Airbnbs over hotels.
1. Airbnb will let you travel with more people at a fraction of the cost.
So let’s say you’re traveling with your whole family or a group of more than 10 people. While staying in a hotel can be an option, it’s basically impractical. You’ll be staying in separate rooms, so you’ll get less time to interact with your group, plus you’ll incur additional costs per room.
However, with Airbnb, you can book a whole house with, let’s say 5 bedrooms and it will allow your entire family to stay under one roof. You can also cook and make breakfast together and have a much better experience at a lower price. You cannot have this kind of experience in a hotel.
2. Airbnb will let you enjoy amenities you won’t find in hotels.
Some hotels have pools that you can use. However, you may not want to share it with others for health and safety reasons. Well, with Airbnb, you can just choose a property with a pool and you’ll enjoy it for yourself. You may even find places with a foosball table, a game room, arcades, and other amenities you can enjoy with your family. Some properties will also allow you to interact with the locals for an even more authentic experience.
3. Airbnbs will let you have more privacy.
Imagine your family traveling to places together, staying under one roof, grilling by the poolside, and just enjoying your stay without having to share it with anybody else.
Well, these kinds of personalized experiences are exactly why people prefer Airbnb over hotels.
And now that staycations are becoming more and more popular, it’s safe to say that Airbnb is not going anywhere. So if you’re thinking about tapping into this business platform, we have tips to get you started.
Setting up an Airbnb business
Did you know that Airbnb hosts make about $13,800 a month on average? Of course, that’s still dependent on the kind of property they have, where they’re located, and the kind of amenities they provide – but this is still a good number.
And if you have a property you don’t use or you have extra money you can spend as capital, setting up your own Airbnb business can be easier.
However, in my years of experience as an Airbnb coach, I have met more people who don’t own properties or have bought one to start. Now, if this is you, just know that there are strategies to help you set up your business without necessarily having to buy or own properties.
Subleasing is where you get in contact with a landlord and ask them if you can utilize their property as a short-term rental.
With this strategy, you can rent the property on a 12-month lease, create a signed legal agreement that says you have permission to use the property as a short-term rental, and furnish it so you can launch it on Airbnb.
Co-hosting is where you manage other people’s property. To be successful with this strategy, you need to learn the basics of managing the business first, and then you offer your services to hosts. The best thing about this method is that it will allow you to earn without actually having to put out money as capital.
How to make your Airbnb business work
Now both the Subleasing and Cohosting methods allow you to launch an Airbnb business without owning properties and ultimately earn passive income. But these strategies, as easy as they sound, need you to have the right kind of knowledge and experience so you can make them work.
If you’re not confident about what you need to know, we’ve listed 4 of the most important things to give you an idea.
1. Contracts and Agreements
You need to manage other people’s properties for both the Subleasing and Cohosting strategies. This may cause legal battles if not done right, so you really need to put things in black and white.
For Subleasing, you need to have an agreement with your landlord that says you can rent their property for a period of time and use it as a short-term rental on Airbnb. Your agreement needs to show that they are aware of this and that they will allow you to change the property locks for the whole period.
For Cohosting, you need to have a contract that clearly shows your role during the whole cohosting deal. Which part of the business are you managing? How much is the compensation? And how long will the contract last? You should check these important elements before you and the owner sign the paper.
2. Finding the right property in the right area
One of the most challenging parts of starting an Airbnb business is the acquisition phase, where you find properties to launch. Not all spaces are created equal, so you need to know how to find the perfect one for your business.
For Subleasing, you need to go for properties that are within your budget, in cities that allow short-term rentals, and have amenities like heating, cooling, and even a parking lot for 2. You can read more about the subleasing strategy here.
For Cohosting, you can help new hosts find suitable properties for them too. If you know real estate agents or you’re a real estate agent yourself, you can offer your services and earn in return.
3. Learning how to talk to landlords
Learning how to talk to landlords is a handy skill to have. And it is essential, especially if you’re looking to start with the Subleasing strategy, because you’re going to ask landlords if you can use their properties as short-term rentals.
If you want to be a Co-host, you can also learn this skill and help newbie entrepreneurs find properties so they can start their sublease.
4. Managing properties
Now, this is important know-how not only for Cohosts but also for those who want to Sublease.
Knowing the ins and outs of how to properly manage and schedule your cleaning and maintenance crew, learning the ropes of communicating with them, and basically overseeing the whole Airbnb operation without pulling your hair out in stress is a great skill you must learn if you want to work on the business and grow it.
Overall, you must learn not only to manage your properties but to delegate and automate your systems and processes too.
So you see, Airbnb is an excellent space-sharing platform for guests looking for a place to stay and hosts who want to make passive income on the side. And now, with strategies to help you launch even without owning properties, you can now set up your business faster than before.
If you want to learn more, feel free to download and check out our free training guide here so you can get your Airbnb business started from scratch in no time.
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Jorge Contreras, Executive Contributor Brainz Magazine
From poverty to a million-dollar business, Jorge Contreras is a real estate investor and coach. He started his real estate journey over 10 years ago, and he launched his Airbnb business 5 years ago. Before that, Jorge was overworked and underpaid. He barely had time to spend with his family, and his business wasn't exactly thriving. Once he got into real estate, he realized the potential, especially with Airbnb and short-term rentals. When he became a millionaire before the age of 30, he decided to share his knowledge with all the people who have the need to spend more time with their families and less time working. Jorge has already helped over 3000+ people reach their goals with Airbnb.
