Renting out your house or apartment on Airbnb is great way to make extra money. One of the best things that people can do with this extra money is put it away. Put it away somewhere where they are not allowed to touch it until they reach their goal.
Reaching your goal is a great way to get into becoming a host on Airbnb. Goals can range from being able to raise a down payment on a house to being able to travel the world. These two are the most common and depending on how you do, some people are able to do both with their Airbnb host earnings.
Buying A House
This goal isn’t as glamorous as buying a house, however, it is a great goal to have as an Airbnb Host if you are currently renting. With this goal it is important to be crafty. Think of friends and family that you can stay with when you do rent out your house.
Another key to this goal is set your prices higher than the suggested price. This is because you do not want to rent the apartment all the time. Only sometimes. So set your pricing based on how often you are looking to rent out your space.
This also leads us to another point. Figure out how often you would like to rent out your space. Some people only want to do it for two weekends a month. But for the right price, they would consider doing a whole week. Figure out what that right price is for each stay length and set your pricing accordingly.
Travel The World Using Airbnb
A lot of people decide to become an Airbnb host so that they can travel the world. They use the money that they are making while they are gone to pay for their own adventures as someone else most likely does the same at their home. This is a great way to utilize your unused apartment or house while you are traveling.
If you are not going to be their while you are gone, might as well make some money off of it and really have fun while you are traveling!
The only thing that we recommend people do if they are using Airbnb to while they travel is to hire a local Airbnb management company.
There are Airbnb management companies in different cities all around the world and this is a great way to ensure that all of your guest’s needs are taken care of while you are gone. The last thing you want to happen while you are five thousand miles away is for something to break and your guests needs it fixed ASAP and you are too far away to do anything about it.
If you have an Airbnb management company then they will take care of everything for you so you can enjoy your travels.
Pay Your Taxes
One thing that many hosts overlook is taxes. They are counting the money and putting it all away. You have to be sure that you are leaving some set aside for taxes.
Don’t spend all of the money that you’ve saved on traveling or on a down payment on a house. If you do, you may find yourself in a sticky spot come tax season. So make sure that you keep this in mind when planning out your financial future.