Have you stayed in any Airbnb for your vacation lately? Maybe you did or maybe not. But that is ok, as you know Airbnb become the best alternative for accommodation then the usual way we book for a hotel.
Today we are going to find out can you make really make money with Airbnb without any home. Myself am interested to find out too, so I come across this course on Udemy teaching How to Create an Empire on Airbnb without Owning a Home.
Short Review of the course
The course is interesting, but be ready to have ready hard to cash to venture into this business model. This business model will have to work online and offline. Advisable to have partnership rather go solo.
Overview – What is the course about?
The course structure is very detailed and the trainers really know what they are doing. There are three trainers in the course. They are David, Gabriel and Luis.
This business model is called Rental Arbitrage, where you rent apartment near your city at low price and list it on Airbnb for higher rates. The revenues from Airbnb will then cover the cost of the rental with the balance are your profit.
It seems pretty straight forward, but the cost of getting started will make your jaws drop.
What I like
High profit, ROI
Easy to understand
What I don’t like
$10k minimum to get started
Landlord might not allow
Lot of offline handling work
Cost to get started
As above, you can see the amount to get started. Yes, you didn’t read wrongly is $10k which just the amount of rental fees of like three months upfront. There are a lot more cost to cover that you need to consider.
The shopping list is a must, you need to shop for furniture, kitchen products, toilet stuff, towels, mini tools and the list go on. Just put yourself in when you go for a vacation, what do you like to have stayed in an apartment.
Home designer, of course you have your own taste of how cozy and nice the home going to be. But it saves you tons of work if you hire someone who are professional. They know how to impress your guest.
A photographer, I know you have your smart phones where you can snap lots of photos of the home. You want the photos to look outstanding on Airbnb listing so get someone to do the jobs with their latest camera gadget.
Next, you need to hire a cleaning maid and handyman. Cleaning, maid will handle for you to clean up the home once customers check out. The handyman will do minor repair of home defects, kitchen sink or toilet bowl got choked.
All these costs you need to add in to your minimum of $10k investment. It will easily go up to $18k to $20k.
Different City Have Different Rules
I not sure how US rules for rent and taxes. As for my country Singapore, we do not allow subletting our home or rent out for short stay if we stay in HDB unless for condo and private property. You will risk getting your home confiscated.
You have your homework properly before you fork out any money.
Find Your ideal Home
Before you go around physically to look for your ideal home. Look at Airbnb directly on the location, price and reviews. On Airbnb go to your city area and do some surveys. Once you know roughly what you looking for then go out to look for your ideal home.
Here is a tricky part when you meet up with the landlord. Should you inform the landlord, you are planning to list their property on Airbnb? Well, be honest and tell them what is the actual plan. It is risky to hide it from the landlord and if they find out. You lost everything.
Some landlord is not comfortable about it having strangers move in and out if their apartment. You can offer them higher deposit and rental to show them you are serious and take care of their property as well.
Is the business suitable for you?
This business model is very demanding, you do not have the comfort of sitting at home and generate income with just a laptop. I agree with David that is good to find partnership where sharing of work load. Checking in and out for the guest, handling calls, shopping for stuff and email guest inquiries.
If you are an energetic person with extra cash, who love outdoors and this model suit you then go for it with
If on the other hand, you have a day job and money is a daily need for your family. I don’t think is for you, the risk is too high. You may rent your ideal home but the revenue doesn’t cover you will be making a loss.
The ideal group that can follow this business if you have extra rooms or extra property. You should make use of it to generate income. You make the call and no invest upfront cost need. Follow the course to your advantage and make the most out of it.
Can You Really Make Money With Airbnb Without Any Home? In my opinion, Yes you can. The course outlines the details for you to follow closely but nothing is guaranteed as I mention it is risky and also competitive.
Alternatively, you like to make money online, but this is way too expensive to get started.
Airbnb should look into affiliate programs for guest who like to recommend their friends, which apartment they stayed and get some incentive. They do have a referral program, but it doesn’t come with cash term.
You can become an affiliate of hotel and apartment. Which pay you commission when you recommend guests to them. Learn how to get started for free.