How To Airbnb Your House

In today’s digital age, there are so many new ways to make money that didn’t exist 20, or even 10, years ago. People are using their talents, computers, cars and even homes to make passive income in 2022. One way in which people are using their homes to make money – and even cover their monthly mortgage – is by renting out rooms or their entire house on Airbnb.

Laura G. has been an Airbnb host for almost 3 years. “It’s been some of the easiest money I’ve ever made,” she says. Laura, who makes about $1,500 per month through the site, has seen a ton of success renting out a private suite in the basement of her Washington, D.C., rowhome. “It basically pays my mortgage.”

Thanks to Airbnb, Laura has been able to support herself while starting her own educational consulting company. “I could not pay my bills without Airbnb,” she says. Along with the income it provides, her hosting gig has also allowed her to meet travelers from around 20 different countries. “It has been a really positive experience for me,” she says.

Are you interested in using your home to make some extra money or meet people from all walks of life? Read on to learn more about the popular site, how it works and how to Airbnb your house.

What Is An Airbnb House?

Airbnb is a service used for renting, lodging and booking travel experiences in cities across the globe. The company was founded in 2008 as AirBed & Breakfast.

Airbnb lets you rent a room in someone’s house – or rent their entire home – at competitive prices that are usually cheaper than a hotel stay. The unique experience allows you to feel more like a local than a tourist, and often provides amenities such as a kitchen, laundry appliances and free parking to help you save even more.

There are two variables needed for Airbnb to be successful: guests, who book lodging through the site; and hosts, who rent out rooms in their homes or their entire houses.

How Does Airbnb Work?

Airbnb works like a broker, as it doesn’t own the homes you rent. Instead, the site helps a guest find listings for homes that match their criteria, then handles the transaction between guest and host. Airbnb does this by verifying hosts and renters, providing a messaging platform for both parties, and collecting and transferring payments in a secure environment. Here’s how it works.

Booking An Airbnb

If you’re a traveler, visit Airbnb.com and enter your destination in the search bar. Once the results populate, you can narrow them down through various filters. Just like a home listing, you can read about the property and look at pictures.

The site also allows you to read house rules (if available), learn more about the host, and read reviews of the home and host from past Airbnb guests. Once you find a place you want to rent, you must create an account and profile before reserving it.

You’ll have two choices: “instant book,” which secures your stay right away, or “request to book,” which requires the host to approve your reservation. The type of reservation will depend on the host.

Turning Your House Into An Airbnb

To make your home an Airbnb, you simply create a free account and list your room or home. You can choose the dates you wish to host, set your own price and decide on house rules, like if you’ll allow pets or restrict access to certain rooms in the home.

“You can design it however you want,” says Laura, who restricts access to the kitchen (she includes a small fridge, microwave and coffee maker in the private suite) and declines reservations from single men as a safety precaution. According to Laura, you can only set that type of rule when you’re sharing a living space with your guests.

You’ll also craft a listing for your home, which should include photos of your home and the rooms guests can use, a description of the property and the area and a list of amenities the Airbnb rental will include.

Once your post is live, guests can start reserving your space. As a host, you can decide whether to rent your space to each guest or decline their reservation request. Once your guests arrive at your home, Airbnb sends your earnings.

“It was so easy to start,” says Laura. “I just opened up my futon, put down some sheets, bought some extra snacks and posted my place on Airbnb. I started getting reservations relatively quickly. I didn’t have any problems.”

What Percentage Does Airbnb Take?

Since Airbnb assists with the transaction, the company earns a small commission from hosts and guests. The host service fee is usually around 3% for U.S. listings and can be more in other countries. For guests, Airbnb charges under 13%, which can vary based on several booking factors.

Should I Become A Host?

Hosting isn’t for everyone, so you should make sure it’s right for you and that you’re able to commit before signing up.

“If you’re really disorganized and you’re not quick to respond to text messages, it may not be for you,” warns Laura, “because you have to respond [to guests] immediately.”

You must also provide a safe, inclusive and clean space for your potential guests. If you don’t live in clean or safe conditions, have discriminatory beliefs or wish to avoid people in general, a hosting gig may not be for you.

“You have to like interacting with people and you have to have a lot of patience,” says Laura. “Sometimes there’s a language barrier. Sometimes people ask a ton of questions. Sometimes people don’t read your requirements and then reserve your home. When that happens, you have to go through a whole process to terminate their booking.”

While the income you make from Airbnb is considered passive, there is some work involved. If you’re not willing to do the work, it may not be the best way to earn extra money.

Legalities Of Hosting An Airbnb

Along with deciding if hosting is right for you, you’ll also need to figure out if it’s legal. Some city laws and local zoning ordinances restrict people from hosting on Airbnb or require them to register their home or get a permit and license before doing so.

You’ll also want to check with your homeowners or renters insurance policy. Keep in mind that some insurance companies frown upon rental activity, while others have started offering certain options for home-sharing. It may be necessary to check with your homeowners association to make sure there are no rules or regulations on short-term rentals.

Is Being An Airbnb Host Worth it?

When asked if being an Airbnb host was worth it, Laura is quick to answer, “Definitely!” And it isn’t just about the money, either.

“It’s been worth it in terms of my hope for humanity,” she says, adding, “I’ve met so many amazingly kind people.”

A social worker by nature and profession, Laura also enjoys the chance to build community and meet new people from all over the globe. She says, “Most of my career has been doing immigrant and refugee work, so I love hosting people from around the world. I feel like I am helping build bridges between cultures and helping build a sense of community.”

There are other benefits of making your home an Airbnb, too.

Pros Of Hosting On Airbnb

If you take pride in your home, this will give you the chance to show it off to people from around the world. And if your space is too big for just you and your family, you can put unused space to good use – and receive compensation for it.

If you’ve always wanted to run a bed and breakfast but never had enough money to buy one, this is your opportunity. You’ll also have the chance to meet new people, hear new stories and be a part of someone’s adventure and lasting memories.

Of course, some drawbacks come with hosting that you should consider as well.

Cons Of Hosting On Airbnb

Along with the aforementioned issues that you may experience if hosting is not the right fit for you, there is also the risk you take when renting your home to complete strangers – the potential for damage, theft and injury.

This is one of the most popular reasons people don’t rent their homes on the site. And while this is the most significant risk you’ll take, you may take some comfort knowing that Airbnb provides insurance for these matters.

Airbnb also offers a Host Guarantee, which will cover up to $1,000,000 in damages to the host’s property. It also provides Host Protection Insurance, which covers up to $1,000,000 of primary liability. These are automatically applied to every reservation for free, with no required premium or deductible.

However, these programs don’t cover everything. For example, cash, jewelry, pets, collectibles and rare artwork are not covered.

Advice For Beginner Hosts

Are you new to hosting on Airbnb? While Laura says that you’ll learn as you go, she did offer a few things she’s learned along the way, so you won’t have to figure out everything the hard way. Here are a few pieces of advice she has for first-time hosts.

1. Use Locks To Keep Items Safe

Airbnb’s insurance programs don’t cover everything, so to ensure your valuables and personal items are safe when you’re not around, put them in a safe or other storage containers that lock. And to ensure guests don’t go into rooms you want to keep private, install locks on the doors.

“I’ve never had anything stolen,” says Laura, “but I do have locks installed on my bedroom and office doors. I use them when I am hosting and not in the home.”

2. Limit Your Lengths Of Stay

At first, Laura set the length of stay for 1 month. However, that length of time brought other types of guests, not just travelers.

“D.C. is very transient and there’s a lot of poverty. When you set a long length of stay, you also get people who are evicted or looking for places to live,” says Laura. “I preferred travelers, so I learned it was necessary to limit the length of stay. My max is 2 weeks, and I rarely have people stay that long. When people stayed longer [before I set a max], they started to feel like a roommate instead of a guest.”

Along with setting a maximum length of stay, Laura advises setting a minimum, too, for various reasons. One-night reservations can overlap requests for longer stays, which can be more lucrative and you miss out on those. And according to Laura, one-night stays are “too much laundry.”

3. Utilize Airbnb Support

“Don’t be afraid to use Airbnb support people,” says Laura, who adds that the site has case managers who help resolve disputes, offer assistance with guests who don’t abide by check-in times and any other issues you may have. According to Airbnb, this support is offered globally, 24/7.

4. Guard Against Bed Bugs

Bed bugs are gross. They bite and can cause skin rashes, and they can spread. Along with being a nuisance, they can also cost you money.

If your home gets bed bugs, Airbnb will take your listing down until your home has a clean bill of health. The company will pay to have an inspection completed on your home to ensure you are bed bug-free. However, it will not pay for treatment.

To help reduce your risk of bed bugs, Laura suggests buying mattress covers that protect against bed bugs. She also recommends buying luggage racks for guests. That way, they won’t throw their bags on the beds or furniture, causing bed bugs to spread if guests have them.

Tips For Being A Great Airbnb Host

We looked back on our own experiences and combed through listing reviews to see what people loved about their stays to curate a list of quick tips for being a great host:

• Create a home binder with a nice welcome message, emergency phone numbers, a printed copy of the house rules, directions for tricky appliances, local coupons and a list of your favorite restaurants, shops and attractions along with directions to each place.
• Create a guest book for guests to sign, write messages and read notes from past guests.
• If you’re there when they check-in, give them a tour of the home and refresher of the rules.
• Keep a stash of books, board games and other at-home entertainment in case the weather is bad or guests just want to stay in and relax.
• Provide snacks and beverages, like bottled water.
• Provide travel-size toiletries in case guests forget to pack something.
• Offer outdoor apparel that may be difficult to pack, including umbrellas, rain boots, snowshoes, gloves, ice scrapers, etc.
• Keep a first-aid kit handy, along with extra phone chargers and a flashlight in case of a power outage.

Follow these tips and you’ll not only be a great host, but you could also become a superhost. Yes, that’s an actual thing – and it can help you book more reservations and earn more money. The Airbnb Superhost program rewards experienced and top-rated hosts with travel coupons and an extra 20% on referral bonuses.

Superhosts also get a badge on their listings and gain more visibility to guests by having their listing placed at the top of search results and featured in emails. There’s also a superhost search filter for guests who only want to work with top hosts.

“You become a superhost when you have the experience, a number of great reviews, a good record of responding quickly and if you don’t cancel on people,” says Laura, who has reached superhost status herself.

Airbnb Hosting FAQs

How and when do hosts get paid?

There are several ways for Airbnb hosts to receive their payments. These include direct deposits, online payment apps like PayPal, debit/credit cards, wire transfers and other various options. Your country of residence can often determine what payment methods are accepted.

An Airbnb host typically receives their payment 24 hours after their guests have checked in, and if a guest stays for more than 28 days, they’ll get a monthly fee instead.

What is a cleaning fee?

A cleaning fee for Airbnb is a one-time fee that the host charges their guests. The purpose of the fee is to cover the cost of cleaning the property when the guests leave. Some hosts don’t charge a cleaning fee but instead include the costs in their nightly rate.

Do I need to hire a cleaning service?

Airbnb hosts may hire a cleaning service to maintain their property. By hiring cleaners, the host can ensure their Airbnb is sanitized according to standards set by the local law without putting the responsibility on themselves.

Professional cleaners frequently offer deep cleaning or turnover cleaning services. If you’re hosting, you’ll need to determine which service is the most beneficial for you and your Airbnb.

What is the difference between an Airbnb and a B&B?

There’s a prime difference between Airbnb and B&B, but many people misunderstand the purpose of each. The Airbnb service constitutes regulated home sharing that allows almost anyone to rent a room or space. Everything with Airbnb is done through the service.

By contrast, a B&B, also known as a bed and breakfast, is a small, regulated inn that has to follow local lodging laws in order for people to stay. With an Airbnb, you could be staying in someone’s home, but the sole function of a B&B is a lodging business.

The Bottom Line

Making your home an Airbnb requires some work, and an ability to open your home and mind to strangers from around the world. If it’s the right option for you, it can be a lucrative adventure. Whatever your living quarters, it’s simple to sign up and start renting.

Just make sure your lease, homeowners insurance, HOA or local laws allow it. If you want a bigger space to rent, talk to a Rocket Homes^SM Verified Partner Agent today to begin your search for a perfect home for you and your guests. Who knows, you could even make enough as an Airbnb host to cover your mortgage each month!