Sure, 50 years ago you could go work for a cab company, but whoever thought of turning one’s private vehicle into a cab via the power of Uber technology or Lyft?
Changes In Renting
Fifty years ago if you had a spare room to rent out you may have been able to find a tenant by placing a local advertisement. You would need to vet that tenant yourself, and there was no telling how long that tenant would actually stay.
Earnings could be very inconsistent. Today, via the power of Airbnb booking processes are streamlined and serious guests always prepay before ever setting foot on your property.
Monthly Rentals vs. Daily Rentals
Many people do not realize that today the power of Airbnb could benefit you even if you do not own the property in question. The difference between monthly rentals and daily rentals is not often taken into consideration as a way to exploit Airbnb.
Taking Advantage of the Airbnb Brand
This section could also be called "how to make money with Airbnb” for those who do not own property." There is information on the net as to how this is done. Let’s go over some basic points.
The key point for non-property owners to understand when it comes to using Airbnb for wealth creation is that there is a difference between the price monthly rentals command and the price daily rentals command.
This difference can be found in any market but in more tourist-oriented markets this difference can be very pronounced.
An Example
In a certain hot market, it is entirely possible for a one-bedroom apartment to command a monthly rent of $1,200; however, if the same apartment is rented on a daily basis through Airbnb the monthly rent collected can more than double to $2,600.00.
In a month that is approximately 30 days long, the monthly rate will come to $30 per day.
Because average daily rentals rares in that area are much higher, the same apartment can collect up to $87 per day. At the daily rate, even if this apartment is only occupied 20 days out of the month one could still collect up to $1,740.00 per month.
What A Smart Operator Would Do
Anyone who could convince the owner of the property to accept a lease for $1,200 per month and to allow the apartment to be listed on Airbnb for daily rentals can almost certainly make a profit. If we subtract $1,200 from $1,740 we get $540. If we subtract $200 for utilities that still leaves $340 in profit if you are willing to clean the apartment yourself.
And if you hire professional cleaners for another $200 you still have a profit left of $140. This is not bad money for very little work. Think of what you could make if you rented the apartment for all 30 days. Imagine having several such apartments that you collect rent payments on through Airbnb, none of which you own. Your monthly profit could be in the thousands of dollars.
Alternatives & Cautions
Of course, such arrangements will not always work in an above-specified manner. Sometimes property owners will demand a share of the excess profits obtained from daily rentals. In markets where there is significant tourism this kind of arrangement can work as well if apartments are generally occupied for almost the entire month.
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If you are entering this business, it is important to first determine if there is enough demand to make one’s business viable. The easiest way to do this is to go on the Airbnb website and determine what prices daily rentals are getting in your area.
Compare these prices to monthly rentals. If daily rentals are worth at least twice what monthly rentals are worth you may have a viable business in that area.
In short, technology today is creating countless opportunities for would-be entrepreneurs. This Airbnb business should not be ignored, especially by those who are in large cities that have significant tourism or convention business.
Click on the above-mentioned information to see what materials are available to help you get started in this common sense and viable opportunity.
Image Credit: make money with Airbnb by Pixabay
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