Who wouldn’t want to make some extra cash with the space in their home that they don’t use? It sounds like a no-brainer, and maybe it is for your given situation, but there are a few things to consider before you list your space on AirBnB.
As an AirBnB host, at minimum, you'll need to provide access to a clean place to sleep and a bathroom. If you don't have an entire unit that guests would be hosted in, you'll need to decide if you're willing to give up some of your personal space and privacy in order to make the extra cash. If you have a guest home or investment property that is unoccupied, it could be a great option in order to put the space to good use.
There are a few things you'll need to dedicate time to doing once you list a room or entire unit on AirBnB:
Keep in mind, most of these items can be outsourced to a third party, but that will also take away from the return on investment you will be getting from listing the space.
As mentioned above, it can more time than you think to maintain a listing. One option is to outsource the work to a third party property management company. Of course, you have to factor in how much this will cost you on a monthly basis and if your earnings will reach your goal income after paying the management company.
Another option is to have someone you know maintain the space for you in order to have more control over the level of service and cost. Whether it's a neighborhood college student or a friend on maternity leave, someone in need of extra cash might be more than willing to help.
Once you factor in the maintenance costs, toiletries to stock up on and the effort that goes into maintaining the rental, it's a lot of time and investment to sacrifice. If you're looking to list your space on AirBnB in order to generate a certain amount of income, it's important to identify what that number is and what your estimated return on investment will be. When the income doesn't match your expectations, ensure you'll have another stream of income that you can use to pay your bills and continue to live comfortably.
Listing your space to add another stream of revenue is a great way to add more money to savings or get ahead of your finances! It's important that you think through the logistics and ensure it's something you want to dedicate time and effort into. If you're interested in finding out how much you could make by investing in a rental property, talk to one of our Art of Homeownership Certified Professionals near you!