How Much Can You Earn As A Host On Airbnb?
Thinking of dipping your toes into the short-term rental market? Beginning your investment by calculating your income potential as a host is a great way to start.
Here’s the first thing you need to know: Airbnb has the power to provide a straightforward, lucrative passive income. But at the same time, that income will depend on factors like your pricing strategy, management approach, market USPs, location and property type.
However, unlike other websites, we’re not pretending to have an Airbnb calculator to show you that you’ll earn thousands in your first week or to get your information. We’re realistic. What we do promise is to show you how you can gauge rather accurately what your property can expect to earn through data and tools, and at the same time, educate you on all the moving parts and key variables.
On average, hosts in the UK can earn a minimum of £1,000 per month, with some hosts earning up to £3,500 per month depending on demand, property and location.
A simple approach to working out your return on investment is by multiplying your price per night by the number of nights the property will be available. But this is not entirely accurate when taking into consideration expenses, utilities and taxes.
It can be difficult to determine your profit potential at Airbnb as there are so many varying factors. For example, your location, the type of property you rent out, your pricing strategy, your cancellation policy and your approach to management are all factors you should take into consideration. Not to mention the number of booking channels you advertise on and how you plan to market your holiday let.
For example, seaside resorts do well in the summer but not so well in the winter. Locations in Dorset can earn a considerable amount in the summer but expect lower nightly rates during the winter.
But savvy hosts, who know the ins and outs of marketing their listing, can adapt their pad during the colder months to make it more attractive for potential guests, like introducing winter glamping, fireplaces and warm lighting and furnishings to reflect the changing season.
Using tools like AirDNA can help newbie hosts make informed decisions about renting out their home or apartment and gain insights into the financial rewards that can be made.
For example, the tool shows you the average income of Airbnb properties in peak periods and off-season so you can get a good idea of what you can expect to make. It will also dive deeper into what properties do well on Airbnb, the size of the properties most booked and the types of amenities they offer.
Other tools, like Airbtics, can help you assess your annual revenue and earning potential.
Other Airbnb management services in the capital and beyond usually take a commission fee between 13-20%. HelloGuest only charges 12%. Is now a good time to switch? Learn more about our management fees.
Income Growth Manager
Toby’s main role is managing all of our holiday homes, ensuring they hit KPIs and maximise their monthly turnover.
Being a natural extrovert and a go-getter, Veronica is a great communicator and is the face of HelloGuest.