AirBnB is a nice way to earn passive income. First of all we should know what is passive income. Passive income is earnings derived from a rental property, limited partnership, or other enterprise. It is usually taxable just like active income.

Now AirBnB is a marketplace for travellers to book short term rentals. If you own a property, an apartment, a cottage, or even a single room then you can register yourself as a host on Airbnb. Renting out your extra space, a spare room, or even a small backyard guest home, is a fantastic way to earn rental money. Airbnb is best for large cities and destinations that get a lot of travellers coming through.

Types of investments:-

Up-front investment

Having a home and room within it to rent out. Taking the time to prepare it for guests and listing it as such.

On-going investment

Cleanup in between tenants, repairs, home costs, potential property damage, etc.


Returns are potentially high. It majorly depends on your local market and your listing. You could see a return within a matter of days from listing your property or it could take weeks to get a renter.

BEST FOR large cities and destinations that get a lot of travellers coming through.


It’s important to know that how Airbnb works, only then you will be able to generate a good amount of income. First of all your location and house are really going to determine which option will be the most lucrative for you. A short term rental can go well just about anywhere. Most of the people come looking for short term rentals, may be travelling, visiting, or in-between houses. A long term rental can be harder to fill and is generally best for areas with lot of singles or students. If you have a separate house or a spare property then it is best to host on Airbnb as you can fit maximum of 6 persons in there. More the people living on rent, more money you make.

If you have a land or plot, you can make a beautiful home on that plot in which 6-8 person can stay at once. Then register yourself on Airbnb and keep the price $80/person. If 6 persons stay for a night then you can earn $480 for a single night. That means you can earn minimum $400 for every night.

And if you put your house on rent 3 times a month you can earn upto $1500 per month. That means $18000 per year. Maximum you can earn upto $50,000 per year but it depends on your house, quantity and quality of the house, locality.


While the app was founded by a few guys trying to afford the roof over their heads and decided to rent out a few air mattresses on their floor to try and pay the rent, today, the marketplace has really matured into its own small industry of short term rentals.

Their new slogan, “live like a local”, showcases where the value really lies with the properties being offered on Airbnb today. While often just as much as a hotel if you are looking in London, Seattle, or another tourist hotspot , there are Airbnb’s going for pennies on the dollar when you consider the location and square footage being offered.

For about the price of a quality hotel room, you could spend a night with an entire house to yourself, and that’s where the selling point of properties today begins coming in.

Most of the landlords on Airbnb aren’t renting out their couches anymore. Rather, people are buying entire homes to rent out on a nightly basis for $80+/person, and it’s allowing the people with the right strategy to rack in thousands of dollars a month.


It’s possible that you have never stayed at an Airbnb before, but millions of travellers have. Today, all sorts of people are attracted to Airbnb, from families on vacation to people trying to land a new job in a new city. It can be temporary housing for new people in town or the equivalent of a vacation rental for people trying to escape to a new city. It can be temporary housing for new people in town or the equivalent of a vacation rental for people trying to escape to a new city.

There are many reasons that ultimately lead people to choose Airbnb over a hotel. Reasons are:-

  • People like being able to have an entire home to stay in or at least a “home-like” atmosphere if you choose not to rent the whole place to one person.
  • They like being able to get immersed in a neighbourhood rather than having to tuck themselves into a hotel.
  • People like amenities afforded by staying at a house compared to a hotel, like better parking, a fully-stocked kitchen, etc.




You are going to have a huge earning potential if you have a right house in the right location.

If you an estimate of your daily and weekly earnings then search your property at

This website allows you to estimate your daily and weekly earnings by listing a property on Airbnb based on your location.

If your house is located in a good location then you can earn upto $120 daily to $730 weekly.

There some drawbacks in investing in Airbnb. Drawbacks are:-

The biggest risk with Airbnb is that it is short-term. Income is not guaranteed as it is in long term rental. It also caters to the travel industry, and if the economy took a dive, people would certainly be cutting back on such luxuries. On the other hand, most people would still be staying in their primary residence.

Other problem is if you live in small city or less popular tourist spot, competition will be fierce and demand…not so much.

There is also a small drawback which is the cleaning fees(or time spent doing it yourself). You have to commit to clean-up and repairs following each and every tenant. So, if people are in the habit of just booking your place for a night or two at a time, that is a lot of cleaning fees.


Let’s consider your house is at a good location. Your house contains 4 rooms consisting of 2 bedrooms, 1 drawing/living room, 1 bathroom. Let’s assume 4 guests can stay at once.

Now if you list your house at $100/person per night, you can earn $400 daily. That means $2,400 daily monthly and $28,800 yearly.

If I deduct cleaning fees and other expenses, you still can earn upto $25000 yearly.

That means you can become a millionaire in 3 years if you save and invest your money.


  • List your house on Airbnb
  • Become a host, and put your house on short term rental
  • Invest- buy a house and repair it after every hosting
  • Earn big returns on investments
  • Your house must be in good locality with tourist spots
  • You can earn upto $25,000-$50,000 yearly
  • Understand pros and cons of investment
  • People choose Airbnb over hotels, use this advantage
  • Keep the rates reasonable

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