Make Money on Airbnb Without Owning Property by ARX Reads

Author:ARX Reads [Raj, Akshay]
Language: eng
Format: epub
Publisher: ARX Reads

Chapter 4. How does this work?

In the most basic sense, you lease an apartment long term, then rent it out short term yourself for double or triple the price that you're paying.

So, the first step in doing this is signing a long-term lease with a landlord that will allow you to do this. So my first question was, is this even legal to do. Most landlords, understandably don't want their home turned into an Airbnb. So this is the hardest part of getting it all set up with several Airbnb horror stories out there, landlords generally not excited about the idea of turning their home into an Airbnb. In terms of the legality of this, it's kind of a grey area. If you have permission from the landlord, technically it is legal, but in a lot of cities, it's banned or heavily restricted. So a lot of them that are operating are illegal. And we'll get into that more later first, let's take a look at how people are actually doing this and how much they are making. So I want you to learn more about what the process is actually like and how much you can make from this. And, the main question is how many rejections was it before? One of the landlords finally agreed to it.

It was like six. It's just like a numbers game. I knew that if I would just be persistent, I would eventually find someone open to the idea.

So let's just talk about my first listing and see how it performed. Now take a look at my first listing, the rent was $800 per month and about $150 per month for utilities. So if it's booked every night of the month I'll make $1,800 minus the 950 for rent and utilities left with an $850 profit. But not every month gets filled with bookings. This property has come down to like $100, $200 a month profit depending on the month. So it does fluctuate depending on the time of year. So let's take a look at the yearly breakdown to get a better idea of the actual earnings. I spent $2,500 on furniture and also had to put down a month of rent for the deposit. So the first year the costs are at roughly $14,000 and the property generated 20,000. And that was just without any experience regarding Airbnb or like real estate in general when I was starting.

So, $2,000 a month of profit, that's pretty good, but you couldn't live off of it. And it's certainly not going to make you a millionaire. Where this gets interesting is when people are setting up multiple listings. These days, some people have hundreds of Airbnb listings. With multiple listings, that's where people start to make a lot of money doing this.

It's a supplemental income. I like to think of it as just like additional household income that you can make for minimal effort. And that's the nature of this business, but to completely

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