“Is Airbnb Profitable For Hosts?” And 13 Tips To Make Your Listing Bulletproof

One of the biggest headlines this year is “AIRBNB BUST”. You may be wondering, is Airbnb profitable for hosts? Or have the gurus been lying? Let me tell you all that I know.

The broad answer to that question is, it depends. So many markets were over saturated post 2020 with hosts who thought they could put up a listing anywhere and make a killing. Honestly, I’m guilty of this. But I did turn it around with a couple secret tips I’ll share in this post.

This post is all about is Airbnb profitable for hosts.

Is Airbnb Profitable For Hosts?

How do Airbnb hosts make money

I’m assuming that if you’re reading an Airbnb blog, you know how Airbnb works. Airbnb hosts make money by listing houses (or experiences) and having guests book them. Airbnb will take a cut of the revenue and also charge a guest fee to the guest making the booking.

Are you new to Airbnb? Use my referral link and I’ll coach you through setting up your first listing! Airbnb will give you a $48 bonus for using me as your Airbnb ambassador for listing set up after hosting your first guest!

What exactly is the “Airbnb Bust”

Prior to 2019, hosts could list a house with Craigslist furniture and make triple the amount they would with a long term rental. During the pandemic, many people were working remotely and caught wind of how much some of these Airbnb hosts were making. They bought a property in a popular city or vacation spot, listed it and made a killing for a couple years but 2024 brought the AirbnBUST.

Hosts weren’t making the profits they were during the pandemic as people returned to work in office and there was economic slow down. If you were an inexperienced host, this was going to completely wipe out your business.  But these hosts were inexperienced, didn’t understand market cycles and were not properly managing their listings.

13 tips to ensure your profitable on your Airbnb

If you’re afraid of being like the hosts affected by AirbnBUST, read through my tips to ensure your Airbnb remain profitable regardless of market conditions.

1. Know your market

What is it about your market that attracts guests? Understand why guests would be traveling to your area and the seasonality of that market. You also need to know any government regulations around hosting short term stays. A lot of municipalities will have taxes, permits and special requirements.

2. Pick a guest avatar

Pick the type of guest you want to attract. This will largely depend on the property being listed and what it can accommodate. But having your ideal client defined will help you curate the perfect listing and attract that guest.

3. Understand your occupancy rate

The goal should not be 100% occupancy, the goal should be whatever Airdna forecasts as your occupancy. This means that there will be seasonality to your revenue. You need to have a good handle on your cash flow to be able to withstand the off seasons in your market.

Also, don’t look at that occupancy rate and say that you can beat it. Your goal should be maximum nightly rate and hit that occupancy rate. The lower the occupancy, less wear and tear on the property.

4. Design your space well

My favorite part about Airbnb is that it’s real estate and well designed properties do extremely well no matter where the listing is located. You have to have well designed spaces in this new era of Airbnb, it’s a must to win the guests.

5. Invest in amenities

Airdna and the enemy methods are the best ways to know what amenities your guests are looking for. Invest in the right amenities!

6. Take professional photos

Professional photos are a must in 2023 and beyond. When you list a new property, Airbnb will even offer to scout a local photographer for you.

7. Use an amazing cleaner

And pay them well! My favorite piece of advise was from a host who averaged 4.95 stars and had over 2,000 reviews over 7 years of hosting. He said the things he’s learned about Airbnb are that guests look for a well designed property (no. 4 on this list) and want it super clean.

Find a great cleaner and pay them well. Tip them often and invest in routine maintenance.

8. White bedding ONLY

White bedding is a hospitality standard. You need white linens and towels in every listing. Your guests will assume the sheets and towels are dirty if you use any color other than white.

9. Have a killer listing description

In addition to having professional photos, you need a killer listing description. The listing description is where you lay out everything about your listing. Highlight the good and the bad. Having all the details out there for your guests helps with setting the scene and giving them a good understanding of what is offered and ultimately set their expectations.

10. Set clear guest expectations with your messaging

The second part of setting expectations is with your messaging. Leverage automated messaging on the Airbnb platform or your property management software. Have clear communication from the time of booking through check out.

11. Have a smooth check in process

Your check in process is your guests first and most impactful experience for your guests. It’s best to just assume they’ve had a long travel day and need the check in instructions to be super spelled out and easy to follow.

Airbnb has a great check in process that allows you to upload pictures and give your guests a step by step guide through the instructions.

12. Ask for a 5 star review

Do not assume your guests will leave a 5 star review, ask them! In every property, I have a sign at the main entrance door that asks the guests to leave me a 5 star review. Do not assume guests know to leave a review so ask them.

What other questions do you have about Airbnb profitability? Let me know in the comments below!

This post was all about is Airbnb profitable for hosts.