How Much Money Can You Make With Airbnb?
Airbnb has the potential to earn you thousands per month in short-term rental income. In fact, there are many Airbnb hosts who are currently running six-figure Airbnb businesses. After developing a portfolio of properties that earned him over $500,000 in rental income, Richard Fertig decided to develop a training course for Airbnb hosts.
Richard Fertig is the Founder of Short Term Rental University, a training program that he developed in order to share his knowledge from decades of experience owning, renovating, flipping, and renting real estate. He teaches others how to turn short-term rentals into steady side gig income.
Airbnb Secrets From Richard Fertig And Short Term Rental University
There are tons of markets where you can make money with Airbnb. However, Richard also says that there are ways to get started on Airbnb even if you don’t have a large amount of money to invest.
He recommends starting slowly and determining whether if the opportunity is right for you as you go. Getting started with one property is okay and you can then gradually work your way up as you purchase additional properties.
Here are 5 more top secrets that Richard recommends:
- Lower Your Minimum Night Stay Requirement. Two-night minimums are best. Many Airbnb hosts worry about filling bookings on weekdays but Richard says this actually won’t be a problem if you live in an area that attracts tourists or major events and conferences.
- Use Dynamic Pricing. Changing your prices ensures that you are always charging competitive rates for your property that maximize your profits.
- Ask for Five Star Reviews. Excellent reviews are extremely important for maximizing your bookings on Airbnb. Make sure that you ask every guest for feedback and to leave you a five-star review when they check out.
- Outsource. Find partners that can help you manage your Airbnb business more effectively. Many of these services, such as cleaning or advertising, will actually qualify as deductible business expenses that you can use to lower your tax bill.
- Accept Instant Booking. Using Instant Booking will mean more bookings and higher placement in the Airbnb ranking which translates to more revenue for your business.
After You Are Making Money Don’t Forget Tax Planning
Airbnb is a great way to make extra money. However, it’s important that you don’t forget about tax planning so that you can keep more of your hard earned income. If you want to get ahead, hire a tax professional early.
Good accountants who know how to handle Airbnb taxes aren’t easy to come by. In fact, many tax preparers at retail tax companies may not understand the specifics of Airbnb taxation. In addition, you’ll also want to make sure that capture all of your business deductions so that you can minimize your tax liability.
A tax accountant will also help you take advantage of tax planning strategies that are designed to accelerate the growth of your Airbnb business.
Check out this video of Richard Fertig from Short Term Rental University as they discuss the huge opportunity with Airbnb.