Is Airbnb Profitable and What Affects How Much You Earn?

Is Airbnb Profitable and What Affects How Much You Earn?

For those with a spare property or even just a spare room, becoming an Airbnb host is a tempting proposition. Allowing you to make money with less involvement than running most traditional businesses — though that’s not to say there isn’t time and effort involved — it’s no wonder there are over four million Airbnb hosts worldwide.

But one thing that puts many off from taking the plunge is the financial viability of doing so, particularly as being an Airbnb host involves various expenditures, from tax to property upkeep. Although it’s difficult to give a definitive answer to questions like “Is Airbnb profitable?” or “How much can you make on Airbnb?”, being an Airbnb host is financially viable for most. After all, the average monthly Airbnb income is $924, with 82% of hosts agreeing that it is a good way of earning money.

That said, how much you can make on Airbnb depends on a whole host of factors, including:

Your Property’s Size and Amenities

Quite simply, the bigger and better your property is, the more Airbnb income you can make. For example, a four bedroom apartment is going to list for a lot more than a spare room in a small house.

By the same token, the nicer your home is, the more you’ll be able to charge too. In addition to aspects like the state of the property and the decorations, the type and quantity of amenities you have will also increase your profits. From pools and washing machines, to air conditioning and hot tubs, there are so many amenities that guests love, and are therefore willing to pay more for.

Your Property’s Location

Your property’s location also impacts the level of income you can expect to earn from your Airbnb listing.

For instance, if your listing is situated conveniently close to a city centre, then prospective guests will almost certainly be happy to fork out extra for the privilege. People generally pay less for properties in less convenient locations, as well as those in neighbourhoods with higher crime rates, for instance.

How Much You Charge

Although aspects like your property and location ultimately determine the general price range your property will be in, you can still decide to charge more or less than this. Perhaps you believe that you can get more guests by listing your property for less, or think that your listing is worth more than what people typically pay for comparable properties.

Regardless, it’s a good idea to find out what the going rate for your type of listing is, though do bear in mind that this will be impacted by things like day of the week and the time of year. Our rental calculator can help you to estimate your revenue potential based on area, property size, and interior design.

How Often You Rent Out Your Property

An obvious point, but an important one nonetheless: the more often you rent out your property, the more money you stand to receive. Of course, you may want to stay there yourself at various times throughout the year, but this can ultimately eat into your profits.

Conversely, the less demand you get for your listing, the less profit you’ll make. This is why it’s important to do everything possible to both entice people to stay at your property and encourage previous guests to return. You can do so by enhancing your guests’ experiences — more on this below.

Your Outgoings

Of course, higher outgoings result in lower profits. Some of the main costs for Airbnb hosts include:

Property upkeep

Many Airbnb owners hire externally for services like cleaning and repairs to help keep their property suitable for guests, while replacing amenities such as shampoo, tea, coffee, and cooking supplies also adds up.


Running an Airbnb business will almost certainly make you liable for taxes, though the exact kind depends on where you’re based. For example, it’s common to pay income tax on your earnings.


Airbnb hosts will want insurance to cover for things like theft, damage, or legal disputes with guests. Aspects like the level of cover you buy and your risk level will impact how much this costs you.

Airbnb fees

Airbnb takes a fee from all hosts, though how much this is depends on where you’re based. Generally speaking, this is 3% of the booking total, though the fee is higher for Airbnb Plus hosts or if your cancellation policy is particularly strict.

Here at Frank Porter our Admin Support Team will take care of all the airbnb requirements and government compliance, permits and DET to mitigate any potential headaches.

Your Guests’ Experiences

The better experience your guests have, the better reviews you’ll receive and the more likely you are to get new bookings and returning guests, both of which boost your Airbnb income. Things that can impact your guests’ enjoyment include the check-in experience, your listing’s accuracy, and your response time/general communication.

Enlisting the help of a property management company like Frank Porter can help you tick all of these boxes, while also enabling you to spend your valuable time elsewhere. Our services include cleaning/maintenance, listing management and interior design, and we have a track record of increasing our clients’ profits. Find out more about us here, and don’t hesitate to contact us at your nearest convenience to make an enquiry.

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