Airbnb has changed my life in a multitude of ways. Sharing my three bedroom home with complete strangers for an entire year altered my perception regarding personal space. It’s not something that I particularly thought I would enjoy, but given my financial situation, it made sense. I’m all about utilizing resources to generate more income. I always have been. In the near future I will write an article discussing the impact that Airbnb has had on my personal life, but this piece is dedicated to one thing… cash money.
I started hosting on Airbnb full-time November 1, 2015. After experimenting with different pricing strategies, my wife and I decided to charge $39 a night for our spare bedroom with a $25 cleaning fee. The financial earnings displayed in this blog post will be from November 2015 to November 2016… exactly one calendar year.
We maintained a solid booking rate throughout the year. While I don’t have data readily available to discuss percentage of nights booked, we would frequently have guests checking out and new guests checking in on the same day. We even had some guests stay for one month at a time (or a little bit longer).
We blocked off approximately two months of out the year so that family and friends could visit. Although it was great seeing our loved ones, we definitely got used to the added income and were ready to get back to business after they left. Sounds strange, but we’ve got bills to pay!
After everything was said and done, we earned $10,459 renting out the spare bedroom in our three bedroom home. This equates to $871.58 a month. If you only take into consideration the times our calendar was available then it increases to $1,045.90 a month. Not bad for otherwise wasted space!
Was it worth the hassle?
Damn right it was worth it. It paid my mortgage. Or if you want to look at it another way it also paid for:
- My car ($225)
- My car insurance ($138)
- Our phone bills ($110)
- My student loans ($275)
- Home internet ($88)
- Gym membership ($35)
In the past 4 years I’ve learned that being financially independent (and living the lifestyle you want) isn’t always about making millions of dollars. I’ve done really well for myself making under $100,000 a year by leveraging available resources and minimizing expenses. If I didn’t rent out my spare bedroom on Airbnb then it would just be another empty room in the house and I would have to divvy up money from my “actual job” to pay for the above-listed expenses. The effort required to host your space on Airbnb is definitely worth the financial reward.