How Much Can You Make With Airbnb?
Whether you’re thinking of putting your vacation home on Airbnb, have been hosting guests for a while, or are even thinking about investing in a vacation rental property, the biggest question for most is simple, “How much money can I make?”
The answer to that question depends on a lot of variables. What’s your property like? Where is it? How many guests can it host? How much will you be using the property yourself? The answer to these questions and many others will be the main determinant of how much you’ll make from your property.
However, you can still get a good idea of what is possible by looking at data. Here at AllTheRooms Analytics, we’ve compiled data for a number of cities across the world to see what the average host makes on Airbnb, and we have also taken a look at the various host fee structures across different vacation rental platforms.
How do does your vacation home stack up to the competition?
Are you making the highest revenues possible from your vacation rental? Find out with our free vacation rental performance score.
Compare your vacation rental’s performance to other properties listed in the same markets (both local and broader) and track your progress with dynamic scoring.
As you optimize pricing and occupancy rates, your score will improve accordingly
How Much Can You Make As A Host On Airbnb?
The easiest way to try and work out how much you can make as a host on Airbnb is by looking at the market average gross revenues. To calculate this we take all the money made by hosts and the total number of listings in a market and divide the former by the latter.
This gives you a quick feel for how much the average host is making on Airbnb. However, the issue with this approach is that it includes every type of vacation rental, from massive penthouses down to more humble studio apartments. While this serves the purposes of this article, hosts may want more tailored results. With the AllTheRooms Analytics Vacation Rental IQ service, our clients will have access to property specific information such as “Average Gross Revenues for 2 Bedroom Apartments in the Brooklyn Area”.
How Much Do Airbnb And Other Vacation Rental Marketplaces Charge?
Airbnb – Host Fees
Airbnb operates a shared host and guest fee system, with a standard fee of around 3% for hosts, and a fee for guests of nearly 13% a night, although sometimes it can be more. The fees are to cover the costs of Airbnb’s platform services, such as 24-hour customer support.
HomeAway – Host Fees
HomeAway offers homeowners two different fee structures. There’s a pay-per-booking model alongside an annual subscription model.
Currently, the cost of the annual subscription is $499 USD. This provides access to features such as a 12-month subscription with online booking, global exposure on over 20 international sites, access to tools to manage the listing, and 50 HD photos.
Rental owners pay a fee that is 5% of the booking cost, but then a 3% credit card fee will be tacked on for guests using credit cards. One advantage of the HomeAway model, though, is that fees are capped off at $499 annually, so rental owners will never have to pay more than that per year. All in all, this is an extremely fair model.
Vrbo – Host Fees
As with HomeAway, Vrbo also offers homeowners a pay-per-booking model alongside an annual subscription model.
At present, the cost of an annual subscription with Vrbo is $499 USD.
Booking – Host Fees
The Booking.com homeowner fee is around 15% per booking with an additional 3% credit card processing fee.