Making extra cash with AirBNB

Finance Oct 31, 2018

5 min read

Making extra cash with AirBNB
Making extra cash with AirBNB
We’ve all got that friend who swears by AirBNB. They’re raking in the cash on their holiday house in Byron thanks to the platform. Of course, this is just an iteration of the holiday house – the difference is only in how you go about leasing it.

And it’s actually very common for people to want to purchase holiday homes or beach houses. You come with the expectation that you’ll will get to use them whenever you want (especially over summer). Then lease it out the rest of the year and make a fortune. Entourage friend Cate Bakos has written about this before – check it out here.

In truth, the peak times that you would want to be leasing the property out, is generally when you’re going to want to be in it yourself. Summer, long weekend and public holidays.

So, we decided to flip the idea on its head (ok we didn’t come up with this, but it is a stellar idea!).

If you own property in inner Melbourne, think: South Yarra, Prahran, etc. then you might consider leasing your house out whilst you escape to family beach house down the coast. Throughout peak summer periods and during some of the big events like the Australian Open there’s huge demand for short stay accommodation in Melbourne.

 

How to make extra cash with AirBNB

  1. Clean up your house and put away any personal stuff (like family photos, personal documents, etc.) and think about what you’re going to do with your clothes and that sort of thing
  2. Ideally, it’s best if you have a guest house or private space to let out rather than your actual home
  3. Stage the space, imagine what you’d do if you were listing it for sale
  4. Take photos of the house: inside & out
  5. Register as an AirBNB Host and put property details for your listing including any features like Wi-fi, heating and cooling and bed configurations
  6. Check out this article for all the tips and tricks
  7. Vacate!

 

On the face it seems like a pretty easy thing to do, snap a few pics, list the property and wait for the money to come in, right?

Of course, the reality is no matter where or how you do it, you’re still advertising a short-term rental. This comes with all the associated hassles like insurance, cleaning and managing bookings – though AirBNB provides a good platform to manage this side of things.

Could be a good little earner over summer though.

 

Pros to listing your house on AirBNB 

  • You get to escape to the beach house and work on your tan
  • Get away from the mad rush of bodies as Melbourne gets invaded by tourists
  • Make some decent cash while your house is vacant

 

Cons to listing your house on AirBNB 

  • You’ll have to tidy up all your personal stuff (think: family photos and personal documents)
  • You’ll need to have a cleaner on standby to do a good clean between guests
  • You’re going to miss out on the big events because you’re down the beach
  • You’re required to pay tax on your earnings like any other rental