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In the article, You will Understand well how much Airbnb hosts make on average per month based on rental type, location, seasonality, expenses, and other factors impacting income. Get the data on typical earnings.
Airbnb hosting has become an increasingly popular way for people to earn extra income by renting out a spare room, a whole home, or even just a couch or shared space. With over 4 million Airbnb hosts worldwide, it’s clear that many hosts are making decent money through Airbnb. But how much do Airbnb hosts make on average per month? Let’s take a closer look at the data.
Calculating Average Monthly Earnings for Airbnb Hosts
Determining the average monthly earnings for Airbnb hosts can be tricky because incomes vary greatly depending on factors like:
- Location of the rental
- Size and type of rental space
- Seasonality and demand
- Host’s pricing and availability
- Whether it’s an entire home or a private/shared room
However, we can make some general estimates based on available data:
Average Nightly Rate
According to a 2021 report from AirDNA, a short-term rental data source, the average daily rate for an Airbnb rental in the U.S. is $162. This varies significantly by location, with popular cities like New York and Los Angeles commanding much higher rates.
Average Monthly Booking Rate
Data from AirDNA finds that the average Airbnb unit is booked for roughly 50 nights per year. That comes out to just over 4 bookings per month. Again, seasonal tourist destinations and larger cities tend to see higher booking rates.
Typical Host Earnings
Based on average daily rates and bookings, hosts earn an average of $651 per booking, according to data from AirDNA. For 4 bookings per month, the typical host makes $2,604 per month on average.
However, this includes hosts renting everything from a shared couch to a luxury 5-bedroom home. To get a more detailed view, we need to break down average monthly incomes by rental type.
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Average Monthly Earnings by Rental Type
Airbnb offers hosts several options for what kinds of units they can rent out. The major types include:
Renting an entire home or apartment is the most lucrative option, bringing hosts an average of $924 per booking, or $3,696 per month based on 4 monthly bookings. Keep in mind larger homes in popular areas can easily earn over $10,000 per month.
Private room rentals, where the host lives on site, earn an average of $511 per booking, or $2,044 per month. This is a nice supplemental income stream but unlikely to cover major bills.
Renting a shared or common space in your home brings lower average earnings of $381 per booking or $1,524 per month. However, these require minimal effort for hosts.
What Impacts Airbnb Host Income?
As we’ve seen, average monthly incomes for hosts vary greatly depending on the factors mentioned earlier. Here’s a closer look at how these impact earnings.
Popular tourist destinations enable hosts to charge higher daily rates and see more bookings. For example, average daily rates exceed $200 in cities like New York, Miami, and Los Angeles. Small towns and rural areas earn much less.
Type of Rental
Entire home rentals bring over 3X more income per month than shared spaces. Multi-bedroom homes in desired areas make the most money.
Demand peaks during the summer and other travel seasons, allowing hosts to charge and earn more. Earnings may dip in the winter or other low seasons.
More beds, bathrooms, and amenities like pools allow hosts to charge higher daily rates. Unique characteristics also help.
Reviews and Superhost status
Hosts with excellent reviews and Superhost status tend to get more bookings at higher rates.
Keeping calendars updated and avoiding blocks of time when a unit is unavailable for booking helps maximize income.
Finding the optimal price to attract bookings while still earning the highest daily rate possible is key for hosts.
How Do Host Expenses Affect Earnings?
One downside of being an Airbnb host is having to pay expenses associated with hosting. Here are some typical costs hosts encounter:
- Cleaning fees – Cleaning services between guests average $80-150 per booking. Many hosts handle this themselves.
- Utilities – Higher electric, gas, and water bills must be paid by hosts. The amount varies greatly.
- Supplies – From soap to WiFi, hosts need to stock and pay for supplies for each booking.
- Maintenance – Wear and tear over time requires repairs and maintenance to keep units appealing.
- Property taxes – Rental income may bump hosts into a higher tax bracket.
- Insurance – Special short-term rental insurance usually costs $200-500 annually.
- Mortgage and rent – Hosts still need to pay these base housing costs.
- Commissions – Airbnb takes 3-5% commission from each booking made.
Hosts in high-demand areas charging higher rates can typically cover these costs and still earn well. But expenses eat into profits significantly, so hosts should budget accordingly.
Maximizing Your Airbnb Income
While earning estimates we’ve looked at are averages, hosts can optimize their rentals to try to make as much money as possible. Here are some tips:
- Pick the right property – Multi-bedroom houses in popular locales earn the most. Period homes or other unique places also help.
- Price it right – Research comparable rentals and local trends to find the ideal rate to charge in your market.
- Highlight features – Play up desirable amenities like hot tubs, fireplaces, great views, and entertainment systems.
- Get Superhost status – Providing an exceptional experience leads to reviews that help you become a verified Superhost.
- Minimize vacancies – Use pricing adjustments and instant book to keep your calendar filled during slower periods.
- Limit expenses – DIY cleaning and maintenance saves money. Furnish comfortably but cost-effectively.
- Offer promotions – Give a discount for longer stays or off-peak bookings to fill gaps.
Airbnb Alternative Accommodation Rentals
While Airbnb is the biggest name in short-term rentals, there are a few other platforms hosts can consider using as well:
- VRBO – Vacation Rentals by Owner also connects hosts to travelers seeking short-term rentals for getaways.
- HomeAway – Now owned by VRBO, this site also focuses on vacation rental listings.
- Booking.com – Primarily a hotel booking site, Booking.com also includes some home and apartment rentals.
- Sonder – Functions like an Airbnb management company by listing units on the hosts’ behalf.
- FurnishedFinder – Specializes in monthly furnished rentals, good for travel nurses or corporate housing.
These alternatives work similarly to Airbnb, although may not have as much brand recognition or site traffic. Hosts can list on multiple platforms to maximize bookings.
Is Being an Airbnb Host Worth It?
Given the potential to earn thousands per month through Airbnb hosting, it can certainly be a lucrative side business for some. But it also involves providing hospitality service and being comfortable having strangers stay in your home. While average earnings estimates provide a baseline, individual hosts may make more or less depending on their specific situations. Tracking income and expenses carefully helps hosts decide if Airbnb hosting aligns with their financial goals.
For those comfortable hosting guests and able to rent out a desirable property in a popular area, Airbnb represents an excellent income stream. However, earnings vary widely. As with any business, succeeding with Airbnb requires research, planning, and continually optimizing your rental. But the financial rewards of hosting can make it well worth the effort.
People Usually ask
How much do Airbnb hosts make?
Average of $2,604/month, but highly variable by property type and location.
How much does Airbnb take from the host?
Airbnb takes a 3-5% commission from each booking.
Is hosting an Airbnb a lot of work?
Can be substantial work, including cleaning, maintenance, and restocking supplies. Worth considering the required time/effort.
Is Airbnb company profitable?
Yes, Airbnb is highly profitable. 2020 revenue was $3.4 billion and over $1 billion in net income.