How to Make Money on Airbnb in 2023 – 11 Steps

If you are looking at this article, chances are you haven’t started your Airbnb hosting journey just yet! You may be wondering how to make money on Airbnb. You’ve come to the right place. AirHost Academy is a leading educational resource for new hosts looking to set up an Airbnb. When it comes to real estate investing, short-term rentals can be among the most profitable properties to own. Airbnb vs long-term rentals? There are many pros and cons to owning an Airbnb. It depends on the rental market in your city, of course. In the right market, Airbnb can be vastly more profitable than a traditional rental property.

The 11 Steps for Making Money on Airbnb

1. Do Your Market Research
   • Knowing how to make money on Airbnb is knowing how to do your homework first. The first rule of real estate is “location, location, location!” Vacation rentals are no exception to the rule. In fact, this rule is even more relevant when it comes to finding a profitable Airbnb property. We always use AirDNA to get all kinds of vacation rental market insights before we actually start the process of buying a short-term rental property. Take out the guesswork and see how any location will rank on Airbnb by using AirDNA! You’ll immediately see how lucrative it is to invest in Airbnb vs long-term rentals. You’ll also want to do your homework on any local regulations or fees that your city imposes on vacation rentals.
2. Find A Good Deal
   • Find a real estate agent, preferably one that is well-versed in vacation rentals. If you can find an agent that knows how to make money on Airbnb, that’s even better. Your agent will walk you through the purchase of the property.
3. Prepare your new home
   • It’s time to prepare your home for short-term rentals and start setting up an Airbnb. If it’s not already furnished, we recommend Ashley Furniture. We also have our own list of the best Airbnb appliances. Upgrade your existing home devices to smart home devices to save on utilities and impress guests. Having a great smart TV is the easiest value add you can add to your property. If your listing is in an outdoor or adventure market, be sure to add an Airbnb hot tub and grill if possible.
4. Take Airbnb Photos
   • Once your listing is furnished and decorated, it’s time to take amazing photos. These need to make your listing stand out so people will click on it in the Airbnb search results. Making money on Airbnb is impossible if no one clicks on your listing because the photos are bad. This is one process we recommend leaving to a professional. Airbnb does offer photography services but we haven’t had great results. We find local photographers at a great price on Thumbtack.
5. Setting Up an Airbnb
   • You’re almost there! You’ll need to decide what platforms you want to list on. We recommend starting with Airbnb and then considering some of Airbnb’s competitors once you become more confident. If you’re going to list on multiple platforms, we recommend using vacation rental management software to help you keep up. This software will make it easy for you to see all your reservations and communication with guests in one place.
   • Make sure you accurately convey what your listing offers by writing a stellar Airbnb listing description. Lay down your Airbnb house rules so that you are protected when you inevitably have to make a claim using Aircover, or worse, deal with squatters. Accuracy is the key to getting great Airbnb reviews. If a guest feels like they paid too much and didn’t receive the advertised value, they’ll leave a bad review that you might have to get removed.
6. Find Your Vendors
   • If you are managing your Airbnb remotely, you’ll need to find reliable vendors. A cleaning service that knows how to deal with Airbnb is the biggest hurdle. You’ll also want a handyman that is available on short notice. We found our vendors by requesting quotes on Thumbtack and then building relationships with them. This was our biggest hurdle of how to make money on Airbnb.
7. Set Up Automation
   • How will you know how to price your listing? When first setting up an Airbnb, you won’t have a clue! We recommend using algorithmic pricing, something that hotels have used for decades that is now available to Airbnb hosts via Wheelhouse. If you’re pricing is too low, you won’t be making money on Airbnb, you’ll be losing it. Don’t take that chance.
   • How will you respond to messages from guests 24/7? This is a key step to making money on Airbnb. You need to automate your listing before you even launch it. Our automation workflow allows us to automate messages to guests, schedules the cleaning service and spa maintenance team automatically, and saves us from stress.
8. Protect Yourself
   • You’ll want to make sure you have a commercial insurance policy that covers Airbnb. There’s so much that can go wrong when hosting guests on your property. Fires and other natural disasters aren’t all you have to worry about. Be sure your insurance has plenty of liability coverage so you’re protected in case someone gets hurt.
   • Make sure you understand the hosting etiquette and rules of Airbnb. One small mistake when starting out could seriously slow down a new host.
9. Launch Your Listing
   • Once you have accounted for all of the above, it’s time to launch your listing! Start out pricing conservatively. The goal isn’t to make money at first – money comes after you’ve got a few great reviews. You should quickly see for yourself the benefits to Airbnb vs long-term rentals.
10. Get More Properties & Maximize Revenue
    • Once you start seeing revenue from setting up an Airbnb property, it’s time to reinvest and scale your business. Focus on becoming a Superhost so you’ll see a boost to your overall revenue. Consider applying to the Airbnb Plus program if your listing meets the program requirements.
11. Set up an Airbnb Experience
    • Whether it’s a guided tour of local street art, a beginner’s surfing lesson, or a backwoods hiking trip, you can start making money by hosting an Airbnb Experience.