Make Money As an Airbnb Host

Written by Karen Bryan

airbnbYou could earn some extra money by becoming an Airbnb host. It’s a great way to meet new people and earn some money from home.

You may have some extra space in your home to accommodate guests, run a bed and breakfast, or have an entire apartment or house that you let out.

You can list for free on the Airbnb site. You’ll pay a 3% host service fee on the value of any bookings made. There’s demand for all types of accommodation from airbeds or bed-settees in the living room, to luxury apartments. It’s up to you to set the price, cancellation conditions and house rules. The person making the booking will pay a guest service fee of between 6-12% directly to Airbnb, on top of the accommodation price set by you.

Once a booking request has been made, you have 24 hours to check out the potential booker’s profile. There’s often a link to their Facebook profile and most have verified their ID by scanning their passport or driving licence. You can also read reviews of the booker by previous hosts.

Before signing up as a host make sure that you check out:

  • If there will be income tax and self-employed National Insurance Contributions due on earnings. If your gross earnings from hosting are below £4,250, you may be able to offset this income under the Rent a Room Scheme.
  • Possible capital gains tax if you sell your home, if parts of your home have been used solely for business.
  • If you need to inform your mortgage provider, landlord or neighbours.
  • If you need a licence to let out accommodation and/or local regulations regarding short term lets.
  • If you need to charge VAT on your prices.
  • If your current home insurance cover will be valid. Airbnb offer a £600,000 Host Guarantee in most countries, but it’s not a substitute for home insurance.

You could save money on your own travel through the Airbnb referral scheme.  If a friend signs up to join Airbnb as a guest  from your referral link, both your friend and you will receive a credit of $25 (approx £16) on Airbnb bookings which cost at least $75 (approx £48), excluding any cleaning fees, within 30 days of the referral. If you refer a friend who signs up as a host, then you’ll receive a credit of $75 (approx £48) once they have hosted a qualifying booking.

If you join Airbnb using this referral link, you’ll receive a credit of $25 (approx £16) which you can use when you make a booking for the value of at least $75 (approx £48), excluding any cleaning fee, within 30 days of the referral.

I’ll receive a $25 credit if you make a qualifying booking and $75 credit if you sign up to become a host, after you’ve hosted your first qualifying stay.

Click here to read the full referral terms and conditions.