how to start an airbnb business without owning a house

Every year, thousands of people from all around the world enter the vacation rental market.

However, not all of those people own properties.

Yup, you read that right. 

I’ll teach you how to start Airbnb without owning property in this post.

You might have looked for alternative ways to make money on Airbnb.

You may have assumed that subletting was your sole opportunity.

Nope! 

There are many additional methods to make money on Airbnb without owning a house or condo. 

Airbnb business owners can make up to $100,000 per year, if not more, without owning any spaces.

There’s nothing stopping you from getting in on the action too! 

Is Owning Property Necessary To Profit Off Airbnb?

 

As previously stated, you do not need to be a homeowner to start making money on Airbnb.

You don’t even need a spare room.

In most circumstances, you won’t need a lot of money to get started with your Airbnb business. 

There is a slew of other smart and innovative methods to break into the vacation rental industry.

There are ways to establish a successful business on this innovative platform and generate passive income.

Related Reading: Best Airbnb Tools – Check Out The Tools Here

How To Make Money On Airbnb Without Being A Property Owner 

1. Work as a short-term rental property manager. 

One of the simplest ways to make money on Airbnb without investing in vacation rentals is by becoming a property manager.

Because the vacation rental market is rapidly expanding, there is a high demand for short-term rental property managers. 

Not only is there a higher demand for property managers, but they also have more flexible working hours.

The following are some of your primary responsibilities:

  • Confirm bookings 
  • Supervise the check-in process 
  • Inspecting properties 
  • Addressing the concerns of property owners 
  • Communicating with guests 
  • Marketing 
  • Cleaning, organizing, and maintenance tasks 

To work as a short-term rental manager, you must first learn about your state’s regulatory requirements.

Some states, for example, may demand a real estate broker’s license and a property manager’s license. 

Others may require no qualifications at all.

Even if it is not a requirement, it is still a good idea to continue your education in property management.

I guarantee that this knowledge will help you stand out from the crowd.

PROS 

  • Property managers don’t need to own properties themselves. 
  • Flexible working hours 

CONS 

  • Managing several rentals may prove to be challenging for some. 
  • You might need to invest in further studies. 

It’s a good idea to invest in vacation rental software, like iGMS, to automate tasks, so you don’t get overwhelmed. iGMS can assist you in reducing your workload by:

  • Automating the creation and distribution of guest reviews
  • Managing several accounts and listings on the major vacation rental networks
  • Using the Dashboard function where you can create essential reports on your business’s results and track KPIs
  • Auto-assigning work and sharing daily schedules with your team
  • Utilizing a unified inbox to organize your messages in a single feed
  • Utilizing automated templates and triggered messaging 
  • Using a direct booking management toolkit to manage direct bookings
  • Connecting your Stripe account to iGMS allows you to receive payments and create invoices

A short-term rental income of a manager working in the US can earn around $42,000 per year on average.

If you have more experience under your belt, it might be approximately $60,000 per year.

It’s all just a matter of finding the right landlord to work with.

2. Join a vacation rental franchise. 

Joining a vacation rental franchise is another way to generate money on Airbnb if you don’t want to start from scratch.

Local property managers can obtain a special license from an existing franchise owner.

This license allows you to use their resources and sell services under their brand name in exchange for a fee.

PROS 

  • Your territory will be protected and fully defined. 
  • You get access to a tried and tested business model. 
  • You have the luxury of ongoing support and initial training. 

CONS

  • Franchise programs require an initial fee. 
  • You relinquish control to the franchisor. You have to follow the franchisor’s branding guidelines. 
  • This method requires fierce commitment. You will have to sign a contract for a specific number of years. 

The amount of money you make will be determined by the franchise scheme you join.

There are a variety of franchise companies, each with its own set of fees. 

You can anticipate paying anywhere between $55,000 and $100,000 depending on whatever vacation rental franchise scheme you choose.

As a result, you should have faith in the brand while selecting a program.

Examine whether the affiliation will generate enough revenue to cover the fees.

3. Launch an Airbnb cleaning service. 

Starting an Airbnb cleaning service might be a lucrative venture because hosts often outsource the first chore.

This implies that there will be no scarcity of work for you.

To start your own Airbnb cleaning service, you’ll need to conduct some research first.

What are other cleaning services available?

What are the industry’s best practices?

It’s also crucial to learn about any state-specific regulations, like insurance and licensing, as well as the average cleaning expenses.

Take care to account for costs as well.

Cleaning supplies, equipment, personnel, and marketing are examples of expenses associated with this sort of business.

PROS

  • Startup costs are way lower than investing in a vacation rental property or franchise. 
  • You won’t run out of work. Hosts typically hire cleaning services between each guest. 

CONS

  • You will have to form a staff of reliable and efficient cleaners. 
  • You’ll be responsible for your business’ marketing. 

A cleaner’s average hourly wage is around $25.

Cleaners make about $800 per month on average.

The amount of profit a cleaning business owner can make is determined by the rates and gigs they obtain.

It has the potential to be profitable!

MaidThis, for example, makes over $100,000 a month.

At the very least, the property owner should give you the cleaning fee that they charge their guests.

Related Reading: How To Operate Airbnb Rentals – Click Here To Learn.

4. Work as a professional Airbnb photographer. 

Another inventive approach to making money with Airbnb is to become an Airbnb photographer.

There are two ways to pursue this path.

You can work as a freelance marketplace listing photographer and be listed on Airbnb.

The other way is to advertise your services on Fiverr, Upwork, or Instagram. 

You can apply to be featured on Airbnb by filling out their form. 

Whatever path you choose, you’ll need to understand interior photography.

As a result, make an effort to understand more about how to stage rental properties.

Most of the time, you’ll be asked to photograph a completely furnished house or condo anyway.

PROS 

  • You get to travel and discover new locales. 
  • Flexible working hours 

CONS 

  • You’re in charge of advertising your services. 
  • Photography equipment can be pretty pricey. 

According to online stats, an Airbnb photographer can earn around $50,000 per year on average.

In terms of hourly rates, they might range from $31 to $94.

5. Master the art of vacation rental marketing. 

To stay ahead of the competition, hosts must market their properties.

If they want to generate direct bookings and entice potential tourists to their website, it’s much more critical.

Hosts usually have so much on their plates.

So, they frequently seek outside assistance in developing and implementing a solid marketing strategy to advertise their rentals. 

It’s a great way to put your marketing talents to use if you want to get into the field.

But let’s say you don’t have any marketing experience but want to get your foot in the door. 

An average person can start learning how to work social media into the equation.

You can go on to other marketing sectors once you’ve mastered this.

In time, you’ll learn how to formulate a no-fail business strategy for the hosts that hire you.

Vacation rental marketers typically provide the following services: 

  • Email marketing 
  • Blogging 
  • SEM 
  • SEO 
  • Site design 
  • Social media marketing 
  • Content creation (video, text, etc.) 
  • Lead generation 

PROS

  • You can work from home. 
  • Minimal overhead costs 

CONS

  • You might need to hire a team once your business picks up. 
  • You have to possess the necessary technical skills. 

You may expect to make around $75,000 per year as a marketer.

6. Become an Airbnb host’s co-host. 

Co-hosts are similar to short-term rental managers in terms of responsibilities.

The main distinction is that they will serve as a host’s assistant rather than a manager.

Co-hosting is an excellent place to start if you’re new to the field.

The following are the critical responsibilities of co-hosts:

  • Communicating with guests 
  • Inspecting properties 
  • Restocking guest items 
  • Confirming bookings 
  • Supervising guest check-in and check-out 
  • Cleaning, organizing, and maintenance tasks 
  • Writing reviews for guests’ stays 

PROS

  • Co-hosts don’t need specific licenses. 
  • Flexible working hours 

CONS

  • The income isn’t consistent. 
  • Hosts generally make more money than co-hosts. 

Co-hosts earn 10% to 20% of each booking.

You might make up to 25% per booking if you take on extra responsibilities and essentially manage the entire process.

Airbnb guests usually require some assistance, so you can monetize your desire to be helpful.

Sometimes, it’s hard work because some guests can be finicky.

However, focusing on guest experience could make them want to book your properties time and again.

7. Work as an Airbnb consultant. 

Consider becoming an Airbnb consultant if you already have some experience managing Airbnb properties and want to assist other entrepreneurs.

To establish your personal brand, you will need marketing abilities in addition to short-term renting experience.

As an Airbnb consultant, you’ll assist hosts in increasing their bookings, improving their ranking, and buying and selling short-term rentals.

You’ll also need to select a unique specialty — the most influential consultants know how to do this.

So, before choosing which precise services you may promote, gather data and keep your own skills in mind.

PROS 

  • You can solidify your role as an industry expert. 
  • Minimal startup costs 

CONS 

  • It’s a self-motivated business. 
  • Prior experience as an Airbnb host is a must. 

In the United States, an Airbnb consultant might earn between $83,000 and $90,000 per year.

Related Reading: Virtual Real Estate Investing – Read The Full Post Now!

8. Be a copywriter for Airbnb hosts. 

Another excellent approach to make money without renting out an Airbnb property is to offer copywriting services.

Airbnb hosts are increasingly using copywriting services.

You may offer your services on Upwork and Fiverr in the same way that you can become an Airbnb photographer.

You’ll be responsible for writing catchy headlines, engaging property descriptions, and potentially even house rules or reviews for visitors.

You could even include a list of experiences associated with the locale of the property you’re writing for.

Some hosts would rather hire someone to do all this writing, so it’s as effective as possible.

That’s where you come in as a copywriter. 

PROS

  • A meager initial investment 
  • Flexible working hours 

CONS 

  • You’ll be in charge of advertising your services. 
  • This is a self-motivated hustle. 

An Airbnb copywriter earns almost $90,000 per year on average.

That’s not bad for someone who doesn’t own property and doesn’t manage guests. 

9. Host an Airbnb Experience. 

Offering an Airbnb Experience is one of the unique ways to earn money without having to rent out space. 

Airbnb Experiences is a program that was established by Airbnb in 2016.

The program has since assisted hosts in generating a consistent stream of money. 

By joining the program, you get to provide various activities for guests to book during their stay.

Such activities include a traditional guided tour, cooking class, or art class.

Folks generally want to immerse themselves in the places they visit by gaining local experiences.

It can be a great option to host stays if you have a specific hobby or program.

It’s also an excellent opportunity if you’re passionate about the tourism of your locale. 

PROS

  • You can offer your services online, thanks to Online Experiences. 
  • It lets you monetize your passion or hobby. 

CONS 

  • You need to be an expert if you’re to be a guide. 
  • Some “Experiences” might necessitate a business license. 

For each guest who signs up for an Experience, you can earn anywhere from $25 to $150.

Airbnb also launched Online Experiences in 2020.

According to Airbnb stats, the top-earning Experiences hosts have each earned more than $20,000 since migrating to the online platform.

10. Airbnb Rental Arbitrage  

An Airbnb rental arbitrage business involves renting a home solely for the purpose of subletting it on vacation rental services.

The money you make must be greater than your rent and other business-related expenses for this business model to operate.

The next step is to read up on legal norms and regulations before implementing this method.

That’s because certain cities do not allow subletting.

Also, you should seek authorization from your landlord before attempting to rent out your rented space. 

Long-term rental lease agreements often prohibit tenants from using listing services to rent out their houses.

If a renter breaks the lease agreement, they risk being evicted.

On the other hand, Rental arbitrage can be a terrific way to break into the sector, provided both sides agree.

PROS

  • Unlike the other methods on this list, you get to keep all the income you acquire. Most of the time, you only get a percentage of the property owner’s income. 
  • No significant capital is required. 

CONS 

  • It may be challenging to find someone who’s willing to sublet their property on Airbnb. 
  • Some cities have local laws against subletting, so scouting locations is more challenging. 

The amount of money you can make with this method is determined by your location.

Of course, the size of your property portfolio matters too.

You can initiate up to three times more than your expenses if you execute it correctly.

Savannah, New Orleans, Nashville, and Jacksonville, according to AirDNA’s statistics, are the markets that can generate the most considerable rental arbitrage premium.

Their research also found that larger apartments provide more potential for rental arbitrage.

Related Reading: How To Make Money In Real Estate – Click Here To Learn The Ways.

Final Thoughts 

Airbnb is becoming more versatile, and there are various ways to make money on the platform.

You can profit from the short-term rental market even if you don’t have your own house to put up.

You can accomplish it in the ways illustrated above.

Gone are the days when only a real estate investor could profit off Airbnb.

Make sure to avoid the rookie host mistakes, no matter which approach you take.

They have the potential to spoil your guests’ experience, resulting in a loss of profit.

Savvy people conduct rigorous market research and secure all necessary permits before advertising on Airbnb.

Remember, you’re technically joining the real estate industry even without much money upfront.

It would be wasteful not to come up with an excellent investment strategy.

If things go well, you’ll be able to pay your rent and have the opportunity to work as a profitable Airbnb host.

But that’s merely the beginning.

I hope you learn how to turn your venture into a full-fledged Airbnb business, if not a secure side hustle.

You’ll never know; you must just earn enough to invest in your first property with your own money.

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Author J Lipsky

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