How To Rent Out Your Airbnb Without Owning Property
Renting out a spare room or vacation property on Airbnb can be a great way to earn extra income, but what if you don't own a property? Fortunately, plenty of options are available for renting out a space on Airbnb without owning property!
Whether you're a renter looking to make a little extra cash, or a homeowner with a spare room to rent, we'll walk you through the options available and provide tips on making the most of your rental.
Stay tuned if you're ready to start earning money on Airbnb without owning property!
Six Ways to Start Making Money on Airbnb Without Owning a Property
Tip #1: Acquire Property through a Corporate Lease
Corporate leases are agreements between a landlord and a tenant (usually a company) in which the tenant agrees to rent a property for a specific time, typically several years.
Acquiring an Airbnb property through a corporate lease is a great way to earn passive income as a landlord. However, it does require some planning and research to be successful.
- Consistency. These leases are often a good option for Airbnb landlords because they provide a guaranteed income for an extended period.
- Passive Income. The company leasing the property is responsible for finding and vetting tenants, which can provide a higher level of security for your investment.
- Hands-off. The company is responsible for the day-to-day management of the property, which can save you time and money.
- Control. You have less control over the property than if you were renting it out on your own
- Lack of Flexibility. You may not be able to choose the guests or set the rent.
- Fees. You will typically have to pay a management fee to the company leasing the property, which can eat into your profits.
Tip #2: Split the risks of an Airbnb business by becoming a co-host
- Low barrier to entry. Becoming a co-host does not require any significant investment or experience, and all you need is a little time and willingness to help a host.
- Gain experience. By working with an experienced host, you can learn the ins and outs of the Airbnb business, which can be beneficial if you decide to become an Airbnb host.
- Limited earning potential. As a co-host, your earning potential may be limited compared to being a host yourself.
- Limited autonomy. As a co-host, you will work under someone else's direction, limiting your autonomy and creativity.
Tip #3: Make use of unused rooms in your home
Have unused space in your home and don't want it to go to waste? Why not turn it into a money-making machine by renting it out on Airbnb? This is an easy way to turn that space into passive income without owning an additional property.
And the best part? The upfront costs are minimal, making it a perfect opportunity for those new to the hospitality industry. Check your local laws and lease agreement to ensure that you're in compliance.
- Profitable business model. It's your Airbnb, so you don't have to share profits with anyone.
- Flexibility. You can rent out rooms on a short-term or long-term basis and choose the days and times your space is available.
- Potential for Tax Deductions. You may be able to take deductions for expenses such as mortgage interest, insurance, and repairs related to their Airbnb rental.
- Meet New People. Being an Airbnb host allows you to meet new people from all over the world and make great connections!
- Privacy. Renting out rooms in your home can mean sacrificing privacy, as guests will be coming and going and may be in your home while you are there.
- Responsibility. Hosts are responsible for ensuring that guests are comfortable and have everything they need, as well as maintaining the property and ensuring that it is clean and safe for guests.
- Noise and disturbance. Renting out rooms may lead to guests making noise and disturbance that might affect your daily routine and schedule.
- Legal Compliance. Hosts must comply with local laws and regulations, including zoning laws and taxes, which can vary from place to place.
Tip #4: Join a Vacation Rental Franchise
If you're eager to enter the vacation rental industry but feel held back by the thought of purchasing a property, don't worry! With a little bit of market research and an investment in a franchise, you can join a vacation rental powerhouse with proven systems in place to help kickstart your journey as an Airbnb host.
- Established systems. A vacation rental franchise will have established procedures for marketing, managing reservations, and providing customer service, making it easier for you to get started.
- Training and support. You will have access to training and support from the franchisor, which can help them learn the business and avoid common mistakes.
- Brand recognition. You will benefit from the established brand and reputation, which can help you attract business.
- Initial investment. You will have to pay an initial investment, which can be substantial, to acquire the franchise.
- Ongoing fees. You will likely have to pay ongoing royalties and fees to the franchisor, which can be costly.
- Limited autonomy. You will have to follow the franchisor's guidelines, which can limit your control over business decisions.
Tip #5: Leverage Airbnb Rental Arbitrage
Do you want to get in on vacation rental properties but feel locked out by rising housing prices? Look no further than rental arbitrage!
Rental arbitrage is the process of buying or renting a property and then renting it out on Airbnb for more than the mortgage or rental payment. This smart and savvy strategy allows you to run a successful short-term rental business without spending tens of thousands of dollars on a real estate investment.
The key to success is finding a property with a low monthly rent and a high average daily rate, so you can bring in extra income while covering your rent. With the proper setup, you can even manage multiple properties with minimal effort.
- Make money on Airbnb as a host without the burden of having your own property.
- No more worrying about the nicks and scratches throughout the home since it's someone else's property.
- You'll use the money that would have gone towards a mortgage down payment to boost the rental instead.
- Hosts may be at risk if the property owner doesn't allow for short-term rentals or if the lease agreement prohibits subletting.
- Lack of consistent cash flow. The market for your property may vary, which may mean your profits ebb and flow depending on the season.
Tip #6: Become a Short-Term Rental Property Manager
Another alternative to owning property is managing short-term rental properties for property owners. This is a viable option with a low entry cost if you want to get started in the Airbnb market. Property management entails managing properties on behalf of real estate investors who lack the time or expertise to effectively market their properties, manage reservations, maintain the property, and provide quality customer service to guests. This can include creating and managing listings, coordinating the Airbnb cleaning service and maintenance, and communicating with guests to ensure a positive experience.
- Steady income. As a property manager, you may be able to charge a management fee for your services, providing a steady stream of income. Property managers earn $43,168 on average in the US.
- Professional opportunities. As a property manager, you'll gain experience in several fields and meet new people to expand your professional network.
- Lack of flexibility. Property management can be complex and demanding, often requiring your attention during holidays and off-hours.
- Experience Needed. It's hard to break in without having experience and instilling trust in the property owners you work for.
Learn How to Host Airbnb Without Owning Property in Our Masterclass Today!
Starting a successful Airbnb business doesn't have to mean owning property. By utilizing OPM, or other people's money, you can acquire multiple short-term rentals and create an amazing experience if you frequently travel or work remotely. Our masterclass will give you the exact steps and strategies you need to start and make a profit.
Sign up now to gain access to the knowledge and tools you need to start your own profitable Airbnb business!