How Much You Can Earn Renting Your Home On Airbnb In 2022
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Airbnb hosts who hosted at least one guest in the first six months of 2021 made an average annual profit of $9,600, according to Airbnb’s own data. Additionally, half of the site’s activated listings waited no longer than four days to receive their first reservation request.
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That was before the omicron strain, but this winter’s spike in infections has so far sparked nothing close to a repeat of March 2020, when the Wall Street Journal reported that Airbnb lost 1, $5 billion in bookings overnight. In fact, all the signs still point to one notion that is not lost on aspiring real estate investors – it pays to own rental property.
Make no mistake, the lingering pandemic isn’t making life easier for Airbnb hosts, but Airbnb host status remains the ultimate scramble.
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There is Gig Work and there is Airbnb
Earnest, a technology-focused fintech lender, recently released a sharing economy report based on data from tens of thousands of loan applications. It looked at the profitability of nine of the gig economy’s most popular money-making platforms, including Uber, Lyft, DoorDash, Fiverr, Etsy and TaskRabbit.
Across all platforms, the average worker earns less than $500 per month, but one name stands out by far above all others: Airbnb. Airbnb hosts earned more than triple all other workers, with nearly half earning more than $500 a month.
The monthly host average was $924, blowing out the #2 TaskRabbit, whose users averaged $380. 10% of Airbnb hosts earn $2,000 or more per month. On all other platforms except TaskRabbit, 0% or 1% earned $2,000 per month.
In short, if ordinary mortals have the choice of working nearby or renting accommodation, it is not really a choice.
See: 22 side gigs that can make you richer than a full-time job
The pandemic has opened a window of opportunity
Due to 2020, conventional wisdom says that Airbnb will drop with each surge of the virus and rise again with a new version of pent-up demand when it fades. It seems to be changing.
Several news outlets have reported a shift in travel dynamics away from short-term rentals and vacations in favor of long-term getaways booked by newly released teleworkers.
According to Motley Fool, Airbnb has made the most of this new evolution in travel and vacation culture. The company generated record revenue and profits in the third quarter of 2021 – but the balance sheet isn’t the only evidence that people now want more than the traditional long weekend getaway.
Airbnb’s third-quarter earnings report showed long-term stays of at least 28 days to be the company’s fastest-growing booking segment. In fact, 20% of all stays were long-term bookings in Q3, compared to 14% in Q3 2019 (skipping the year 2020).
In short, new hosts in 2022 can enter the ground floor of a lucrative new market based on extended working holidays, which simply never existed before.
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So what can you expect to win?
Industry site Hosty recently released its list of the best cities for Airbnb Business in 2022, which takes into account variables such as occupancy, return on spend, standard daily rate, and local rules and regulations. The authors of the list remind potential hosts that running an Airbnb business is difficult, time-consuming, paper-intensive, and can be frustrating. It’s worth it, of course, if it generates a reliable stream of income.
So the obvious question is how much will you earn? The answer – like just about everything else in real estate – is that it depends on your location.
The Hosty study cites the average monthly income in No. 1 Manhattan Beach, Calif., at $10,782. At No. 3 Key West, Florida, it’s $8,822. At 6 Long Beach, New York, it’s $4,670. At No. 17 North Canton, Ohio, it’s $3,810 and at No. 20 Milwaukee, Wisconsin, it’s $1,940.
Remember that you have to pay to play. Airbnb takes a 3% cut, according to Wise, and cleaning costs, taxes, the cost of consumables like toilet paper, license and permit fees, insurance costs and other miscellaneous expenses are all part of the cost of doing business.
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