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Let me pop the question!


#1

Is AirBnb profitable?
or better yet Is short term rental business profitable?
I am a kinda a renooted host and the last time I hosted I was tremendously profitable in the sense that it helped me cover my rent and utilities.
I have been around the forum and came across a couple of threads, all pointing me in the opposite direction. Are these threads misleading, or do they actually mean something?
So all the experienced hosts around here, help me out and answer this question please!
All the bullshitters stay away!
Is it profitable all around the world or is it profitable only in certain markets?
Give me your input, write about your experiences


#2

In aggregate it’s super profitable. Airbnb made $93 Million profit on $2.6 Billion in revenue during 2017. One global travel analyst estimates the “Private Accomodation” market at $36.6 Billion for 2018. So people are clearly making money in this area.

As for whether its profitable for individual hosts depends on your market and what you’re offering. I’m lucky to be in a prime location in an in-demand market. I also put a lot of thought into my listing, decorated in a way that attracts guests, and garnered solid reviews. I’ve spoken with other hosts in the area who don’t have the same “mix”, so don’t book as often or as profitably as I do.

It seems more about finding your niche - play to your strengths and don’t destroy yourself through bad management or business sense. Tough markets will still have winners. Popular markets will still have losers.


#3

Not profitable, everyone on airbnb is in it for charity. I have heard rumors STR’s in eastern North Dakota are profitable.


#4

@Allison_H
I saw your listing, you have really done a tremendous job!
No wonder you are booked till the next year.
I see that you are hosting a single home which I am assuming you own.
What I have a question about is whether it is profitable to host multiple properties by either
leasing them out or purchasing them and paying the EMI’s. Even I am in a popular destination. Though it is not much of a tourist spot anymore but more of a economic hub. So probably focusing on business travellers will get me the success I want. After reading your post and going through your listing I am inching towards the conclusion that Airbnb is profitable in places where there are more travellers and even then it depends on the individual who is managing the properties.

My aim is to build the vacation rental business to such heights that I am the best one in the entire city. Currently I am testing it out with my own properties. If all goes well, I am gonna blitzkrieg the city with tons of apartments ready to rent. Maybe I am counting my eggs too soon!

@Brandt Didn’t I ask bulshitters to stay away? Maybe it is hard for you guys to follow simple instructions.
Thank you for your input!


#5

You did, along with asking ridiculous questions.


#6

LMAO
you ask a generic question and expect specific responses?

No, not profitable stay out of the market run don’t walk

RR


#7

For me Airbnb has given me a great opportunity to change my life. Profits you ask? Not me.

From a full-time job to now being a student in Copenhagen and still being able to live my life fully whilst I keep my apartment and car (which are crazy expensive here) - Airbnb is not profitable financially in my situation but it does give me the possibility to live my life all the while I finish my university degree.
So in that sense its totally profitable, as education is free here and will give me access to a job market I wouldn’t be able to come into.


#8

There’s profit to be had in renting multiple properties, but I wouldn’t do so without a great deal of confidence in the direction of my market’s regulatory winds. For that reason some STR investors have focused on areas where regulations are already in place. There’s short term potential in many markets, but they could go illegal (as in San Francisco) any time. If that happened, would you be able to convert your listings to long-term rentals, or would you be up the proverbial :poop: creek?

I think Airbnb lost a lot of what was special about homesharing with the number of entrepreneurs who jumped into the game, removing available housing from a market for the arbitrage potential. At least that’s what has happened in my local market. I won’t be sad to see the vultures lose their shirts when the laws catch up.


#9

Keep to local laws. Work out your Return On Investment calculation. Use local listings/prices for your sums. The ROI should be above 8%.


#10

You’ll know as an experienced host this isn’t a black and white question.

How are you defining ‘profitable’. What costs do you take into account?

My experience is not likely to be yours, so isn’t going to be relevant to your situation.

As already mentioned by another host. You need to do your own market research.

And yes you are counting your eggs too soon :slight_smile:


#11

The entire business model of AirBnB and other home-sharing ventures was built on the economics of unused spaces. Prices are lower than hotels because the guest/renter is only paying a small portion of the cost of the property. Many owners don’t pay themselves a salary, either. And AirBnB pushes everyone to drop their price further.

Only you can decide whether the market you are in will be profitable. If there are limited properties relative to the demand of travelers, you have a good chance to make money. But you’ll still take a risk that the laws will change or more properties will come on the market and the prices will plummet.

Good luck, whatever you decide to do.


#12

I think the profits will always be there in the long term, but only if you choose your properties correctly, control your costs tightly and are willing to play the long game. Hosts are unlikely to continue with Airbnb without profit, but it also takes a long time for unprofitable hosts to leave the market. For example, 2BR setups in my market have gotten very close to being unprofitable for new hosts, but I notice many of the established ones with 100+ to 200+ reviews are doing pretty okay. But even these ones which are normally located in tourist areas now seem to be struggling to get booked during the winter periods, as guests are faced with more and more listing choices every year. Playing the long game will require careful financial planning and diligent process and cost improvements.


#13

I think it varies. For me, it’s been a little profitable. I wouldn’t quit my day job.


#14

@truecomforthomes this topic has been discussed many times onthe forum. You can also search where you will find people’s stories and advice that they have already taken the time to share. Also, please do not call other forum members bullshitters. You just joined. Cool your jets.


#15

“OMG, he’s just fucking with you!” as you said to me on another thread.
You’re the dish it but can’t take it type?


#16

LMAO he is not responding either.

RR


#17

Well, it was a daft question anyway. I mean, is Airbnb profitable? And I assume that he means from a host’s point of view rather than the company.

Well, is having a shoe shop profitable? Being a poultry farmer? Being an architect? An opera singer? A tarot card reader???

Any business can be profitable if it’s done right by someone with experience in the particular industry and a good head for business. Any business can also go bankrupt with a prat at the helm.


#18

The best way to make a million bucks in this business is to start with two million…

RR

Bullshitters unite!


#19

The two risks I will advise you to monitor carefully is regulatory risk and cashflow risk. It’s good to be gung-ho and all, but a small change in law can derail everything. If you own all your properties outright, the risk is small, I would opine, as even if Airbnb fails you can always switch to long term letting. Regulatory risks in India is no joke, as you’re essentially taking away from the local housing supply, and indian regulators insofar as I’ve observed are not afraid to take a swift and hardline approach when it comes to protecting public interests. You can find your entire business dismantled overnight, if not careful.


#20

Maybe I was being a bit hypocritical. I apologize for using bad language and will take this
incident as an anecdote before posting future posts. Apologies for any inconvenience.


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