renting apartament

Weighing up traditional rent vs Airbnb

When putting up a place for rent, one really needs to focus on how much they can make from Airbnb in comparison to traditional renting methods… plus it’s also very important to consider the difference in ‘loan security’.


Before we even hit you with any statistics, let us say that right now by renting your house on Airbnb you can make a lot more money, than you would by using traditional renting methods. Okay, let’s look at some stats…The Sydney Herald recently (August 2018) released a report showing that the average Sydney Airbnb leased apartment has roughly an 18% higher yearly ROI, than a traditional fixed term rental lease.


To top it off, your prices are flexible and can be easily changed on the go, depending on your properties demand. Constantly booked out? Bump the price up a little, still booked out? Bump it up again. You can honestly do this until you’ve hit a capped limit, also known as the ‘supply ceiling. The supply ceiling is basically where you receive the highest ROI for your investment, both price and time wise.


Imagine trying to flex your rental prices up every couple of weeks with a fixed terms property agreement… nearly impossible.


Wait, wait, wait, I nearly forgot to tell you about the best part of listing on Airbnb that many people seem to forget about. Whilst Airbnb takes a percentage cut on your sales, listing on Airbnb is FREE. Try to list your house or apartment on the ‘standard’ market without paying any upfront fees… again, nearly impossible.

So how much money can you make on Airbnb? Lots.., well, lot’s more than you could with a traditional fixed term rental agreement anyway.


If you really want to know how much money you can make on Airbnb? Read This Success Story

Evan Kimbrell is currently the number #1 rated host in San Francisco and his apartment is currently returning him on average around $10,000 US a month. Now, most people seem skeptical and want to know about the expenses, well… Evan is in-fact only paying around $3300 US in expenses’, including; Airbnb’s cut, cleaning costs, and property listing management… not too bad.


Now, in order to not lose any integrity of the message we’re about to convey, Evan has a message for new ‘property listers’ looking to give Airbnb a shot. I’ve put down his most important tips for increasing your listings conversion rating and maintaining a high-quality review rating.


  1. Get a professional photographer to take the listings photos. Your return on investment will definitely be worth it in the long run, as many customers will make the choice of where to stay based solely on the quality of the pictures. Customers usually tend to believe that higher quality pictures usually coincide with higher quality listings. This means you can increase your price a little.


  1. The ‘better’ the city your properties in, the more money you’re going to make. (Sounds simple), but remember to factor this into the equation when looking for property. Sure, property might be cheaper elsewhere, but the more ‘traffic’ flowing through the big cities and higher rental costs will allow you to return money a lot quicker.
  2. You can start small.. if you’re already renting somewhere and have a spare room for the night, or you’re going travelling for a few weeks, get some professional photos taken and then put up a listing on Airbnb. Who knows… you might be surprised with how many nights you get booked out.


Remember you don’t have to own a property to make money on Airbnb, you can rent out even your own room a few nights a week. (Just make sure to check both your countries and states laws before doing so, as you don’t want to break any unforeseen laws).