How to Make Money on Airbnb without Owning Property

One of the biggest myths about hosting is that you can’t make money on Airbnb without a property. The truth is that there are at least 6 ways to make money on Airbnb without owning a property. How, you ask? Let’s break it down. 

Understanding The Short-Term Rental Market

The rise in vacation rental popularity is mainly fueled by the desire for cozy, personalized stays.

Platforms like Airbnb give enough opportunities for new entrants to make money even without owning property. 

In the US alone, the vacation rental industry’s total revenue is estimated to reach $13.3 billion with a roughly 10% year-over-year vacation rental market growth rate — the industry will be close to $20 billion in 2025. If you want a piece of the pie for yourself here’s how you can do it without even owning a property.

How to Make Money on Airbnb without Owning Property

1. Airbnb rental arbitrage

Airbnb rental arbitrage is all about renting a property from a landlord and then listing it on Airbnb for a higher price. It’s like playing the middleman, considering the difference between long-term rental rates and short-term rental income. This strategy lets you earn money without needing to buy property. Here’s a road map to get started:

Research

Start by researching the market in the area you’re interested in. Tools like AirDNA can help you understand the local trends, occupancy rates, and average prices. Once you’ve got that covered, look for rental properties that fit the bill. You want something in a good spot, with nice amenities, and a reasonable monthly rent. The goal is to find a place where you can charge enough on Airbnb to cover the rent and still make a profit.

Convince the landlord

Now is the tricky part, where you convince the landlord with your proposal. The best-case scenario is that they like your proposal and let you get on with it. The worst-case scenario is that they like your proposal a little too much and they get on with it, leaving you with a new competitor in the market.

Setting up 

When setting up the property, keep in mind the guests you want to target, the ambiance and theme you want to project and that a vacation rental will have a lot of wear and tear. Once your property is ready it’s time to create your listing and start hosting.

How much can you earn through rental arbitrage?

How much you can make with rental arbitrage will depend on your location and property portfolio. If done right, you can make up to three times your expenses.  Aim for a property that can make profits of at least $2k per month after all expenses. According to AirDNA data, the best rental arbitrage spots are Savannah, Charleston, New Orleans, Nashville, and Jacksonville. 

2. Short-term rental property management

One of the more popular ways to make money on Airbnb without owning property is to become a short-term rental property manager. This role allows you to leverage your hospitality and management skills to generate income by overseeing properties on behalf of owners. Depending on your agreement with the property owner your tasks may vary but listed below are some of the most common tasks outsourced to property managers:

• Check-in and check-out

• Cleaning/managing cleaners

• Financial management

• Guest communication

• Guest screening

• Maintenance and repairs

• Marketing and advertising

• Pricing and revenue management

Before getting into property management, look at the legal landscape of your state. Some states will require a real estate broker’s license and/or a property manager’s license, while others won’t.

How much can you earn through property management?

According to Glassdoor, as of July 2024 the average annual pay of a vacation rental property manager is $51,514, With additional compensation, the total annual pay comes to about $60,777.

3. Co-hosting 

Co-hosts take on duties similar to short-term rental managers but usually play a more assistant-like role to the main host. If you’re new to the industry, co-hosting is a great place to start. As a co-host, your primary responsibilities may include:

• Responding to booking confirmations

• Handling cleaning and maintenance

• Guest communication

• Property inspections

• Restocking necessary items

• Supervising the check-in and checkout process

• Writing guest reviews

How much can you make as a co-host?

Co-hosts typically earn about 10-20% per booking. For instance, if an Airbnb you co-host brings in $30,000 annually, you could make around $3,000-$6,000. If you take on additional responsibilities and manage the entire process, however, depending on how much you do and your negotiation skills, your earnings could go up to 25% per booking.

4. Starting an Airbnb cleaning business

Cleaning is typically the first task that hosts outsource. This means there's plenty of demand for your services. 

To get started as an Airbnb cleaning service owner, begin with thorough research. Look into what other cleaning services are offering and understand the industry standards.

Next, look into any specific requirements in your state, like insurance and licensing. Also, find out the going rates for cleaning services in your area. When setting your prices, don’t forget to consider your expenses—things like cleaning supplies, equipment, labor, and marketing will all add up.

With careful planning and a bit of research, you'll be well on your way to launching a successful Airbnb cleaning service.

How much can you make as an owner of an Airbnb cleaning service?

In the U.S., Airbnb cleaners typically make about $18.72 per hour, which is 39% more than the national average for cleaning jobs. If you’re self-employed, aiming for at least $25 per hour is a good benchmark to ensure you’re making a living wage.

Monthly earnings can vary widely, from $900 to $7,700, based on how many properties you clean. As the owner, your profit will depend on how much you charge and the number of clients you take on each month. With the right strategy, running an Airbnb cleaning service can be very lucrative.

5. Hosting an Airbnb Experience

Airbnb experience was launched in 2016 and gained a lot of momentum during the Covid-19 pandemic. Hosting an Airbnb Experience is a fantastic way to make money by offering unique activities or tours to guests. 

Start by figuring out what makes your area special and what you love doing. Create an engaging description and use photos to make your listing stand out. Research local prices to set a fair rate and make sure you have all the materials and equipment you need. 

Some of the most popular Airbnb Experiences as of July 2024 are,

1. Cooking classes

2. Guided Hikes and Nature walks

3. Historical and cultural tours

4. Wine and food tasting

5. Photography tours

How much can you earn by hosting an Airbnb Experience?

As an Airbnb Experiences host, you can earn anywhere from $25 to $150 per guest. Since the introduction of Online Experiences in 2020, some top hosts have made over $20,000 by offering their activities virtually, according to Airbnb data.

6. Becoming an Airbnb photographer

The competition among Airbnb listings is fierce, and high-quality photos are a key factor in attracting bookings and hosts are always looking for talented photographers to help boost their listings.

Airbnb photography isn't just about taking beautiful pictures, it's about capturing the essence and unique features of a space to entice potential guests. By specializing in this area, you can tap into a steady stream of clients who are either looking to update their listings or add new properties to their portfolios.

How much can you earn as an Airbnb photographer?

As an Airbnb photographer, your earnings can vary based on experience, location, and the demand for high-quality property images. According to a breakdown by Glassdoor, the hourly rate for an Airbnb photographer typically ranges from $25 to $68. This can translate to an annual income of around $50,000 on average.

Embrace Your Potential

From becoming an Airbnb photographer to managing properties for others, the opportunities to generate income are diverse and plentiful. With a bit of creativity and strategic thinking, anyone can tap into this thriving market and start earning. Embrace these opportunities, leverage your unique skills and transform your expertise into a thriving business within the ever-expanding Airbnb community.