Putting your holiday apartment, spare room or home on Airbnb is a great way to earn extra cash when you’re not using your place. However, there are certain things you need to know before you become a host on Airbnb to maximise your earnings.
What is Airbnb?
Airbnb is the world's largest accommodation-sharing website with more than 2.5 million homes listed in over 191 countries. Hosts can list a room or house on the website, with details about the property such as the number of rooms and amenities.
Travellers can browse through the Airbnb listings and message you if they're interested in renting your property for a short period of time. Most renters look for accommodation on Airbnb because they want a ‘homely’ feel or they want to ‘live like a local’ when traveling rather than staying in a hotel.
Things to know before renting out your home
Airbnb hosts in Sydney make about $7021 a year. It’s a modest extra income that can help pay off your mortgage or other household expenses.
Bear in mind that you can't spend all the money you earn from renting out your home because the income is taxable. You can ask your tax agent how much you need to save for your tax.
It is highly recommended to keep a record of your guests and how long they stayed so everything is organised at tax time.
Local rules and regulations are another thing you need to know about. These differ from council to council.
In some areas in NSW, short-term accommodation is banned. In Queensland and Victoria, some councils require permits to be able to rent out your property legally, so it’s important to do your research first.
Airbnb offers Host Protection Insurance and a $1 million Host Guarantee, however, you should still make sure you have your own insurance.
Tips for renting out your property
Location: Is your place located in the centre of the city? Close to the beach, transportation links or entertainment? Location is an important aspect to think about if you want to attract renters.
Price: You need to decide how much your property will be offered for on the rental market. You can do your research by finding Airbnb listings near your place and comparing their size and facilities to yours. Note that Airbnb can also recommend a list price for your property.
Details: Provide as many details as possible about your property. Be honest about what you have in your place.
Photos: Tidy up your home, get good lighting and take photos from different angles that make it look as good as possible.
Cleanliness: A lot of travellers expect a hotel-like experience. So to earn positive reviews on Airbnb, make sure your place is always clean and that you provide excellent accommodation.