5 steps to making money by renting out a spare room: Airbnb super host offers these tips (2024)

The World Athletics Championships wrapped up Sunday in Eugene, but the 10-day competition isn’t the end to tourists racing to TrackTown USA.

Lodging is needed year-round as the city and other parts of Lane County lure visitors to experience art and nature, craft beer and covered bridges as well as top-tier sporting events.

In addition to promoting traditional hotels, bed & breakfast inns and campsites, the Travel Lane County tourism office encourages residents to list short-term rentals, from a room to an entire house, on peer-hosted sites like Airbnb and Vrbo.

“High-demand, peak travel times, like for Eugene over the 2022 World Athletics Championships, offer a great starting point for many prospective hosts,” says Airbnb spokesman Haven Thorn.

New Airbnb hosts in the U.S. saw an increase in income in 2021, earning more than $1.8 billion, up 34% from pre-pandemic 2019, according to Thorn.

“In 2021, hosts in Eugene earned over $13 million, with the typical host earning nearly $11,000,” he says.

To help first-time hosts rent their place during the Oregon22 track and field competition and beyond, Andy Vobora of Travel Lane County reached out to Mike Grudzien of Eugene. The retired telecommunications salesperson is so good at renting his second home to people on vacation that he’s earned the ranking of Airbnb superhost.

As an Airbnb superhost ambassador, he also mentors new hosts, helping them from setting up their rental space and creating an online listing page, all the way through their first checkout and payment.

“Most folks commonly ask, ‘What do I need to provide?’” Grudzien says. “Simple answer: Everything.”

A short-term rental space is expected to be fully furnished and stocked for day and night comfort.

“You are in the hospitality business; you’re running a hotel with new guests and constant turnover,” Grudzien says.

Answering questions and resolving issues promptly builds your reputation and boosts the number of referrals and returning customers.

The reward? “Our guests are interesting and awesome people to meet,” he says.

Grudzien could sign a longterm lease to rent his two-bedroom house, which is an eight-minute drive to the University of Oregon campus, for about $2,300 a month, he says.

After building his vacation rental business for nine years, however, he says his property generates more than $4,000 month.

To make a profit, income should be more than expenses for rental supplies and amenities. Some hosts use the added revenue to pay for their mortgage, property taxes, homeowners insurance and utilities.

The nightly rate for Grudzien’s 1,400-square-foot rental house starts at $199. The total cost for the two-night minimum stay plus fees to cover cleaning and hotel taxes could add up to $600 or more.

For that, people expect to find everything promised in the listing.

Hosting is not for everyone, says Grudzien. Owners managing the process have to be responsive to the guests, comfortable maintaining the online listing, adept at handling the reservations, and efficient at communicating through emails and texts.

Grudzien also reaches out to guests with a phone call soon after they book a stay.

5 steps to making money by renting out a spare room: Airbnb super host offers these tips (1)

Here are five tips Airbnb ambassador Mike Grudzien gives people considering renting their home short-term:

It’s a business based on good customer service and your reputation. Your guests’ experience and their posted reviews will make or break your business. “These aren’t people ordering something off a website,” says Grudzien. “It’s a 24/7 and a very personal business.”

He takes arriving guests on a tour of the house and lets them know that the place is their home while on vacation, but when they check out, it’s like a hotel and they should leave the cleaning to him. He collects unopened food and recyclable beverage containers to donate to people who are homeless.

Test out your new rental: Stay in the rental space for a day or two to discover what’s missing. Put yourself in the shoes of someone who just arrived: what do they need to be comfortable?

Exceed expectations: The quality of each item builds or detracts from the overall aesthetic, ambiance and experience, Grudzien says. The rental should be staged and stocked to inspire an experience. He leaves two bottles of wine with glasses and an opener on a tray for incoming guests. In the morning, they receive a basket of fresh fruit.

Guests want to relax: The living room should have a flat screen TV with cable or multichannel video programming like DirecTV, a DVD player, small selection of DVDs, high-speed Internet and comfortable furniture. The bedrooms need an above-average mattress, pillows, blankets and sheets. There should be a TV in the primary bedroom.

Have help. A handyman and people who service the pool or hot tub must be available on short notice to address functional issues and return your guests to a five-star experience as soon as possible.

You also need a reliable cleaning crew ready to sanitize and reorder the place to look like the reservation photos.

“Turnover cleaning is different than a regular cleaning service,” Grudzien says. Paper goods and amenities need to be restocked. Everything has to be wiped clean, with no streaks, each time. Dust cannot be under dressers or beds.

Grudzien has advantages: his wife, Terry Lee Sears, runs a residential cleaning service, and he’s a U.S. Marine Corps veteran who knows how to conduct a white-glove inspection.

If the on-call, hands-on job of running a vacation rental is more than you can handle, you can pay a management company that specializes in short-term rentals. The commission is about 20% of the booking revenue plus expenses. Portland-based Vacasa manages high-end vacation rentals across the globe. And Airbnb can connect you to a co-host to manage the property when you are traveling.

— Janet Eastman | 503-294-4072

jeastman@oregonian.com | @janeteastman

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5 steps to making money by renting out a spare room: Airbnb super host offers these tips (2024)

FAQs

5 steps to making money by renting out a spare room: Airbnb super host offers these tips? ›

The profitability of Airbnb rentals depends on various factors such as location, property type, market demand, pricing strategy, and operating costs. In some areas and circ*mstances, Airbnb rentals can be profitable, while in others, they may not be as lucrative.

Is renting a room on Airbnb profitable? ›

The profitability of Airbnb rentals depends on various factors such as location, property type, market demand, pricing strategy, and operating costs. In some areas and circ*mstances, Airbnb rentals can be profitable, while in others, they may not be as lucrative.

How do I Airbnb my spare room? ›

Listing is free on Airbnb but it usually takes 3% of what you charge (to cover the cost of processing the payment). Listing on Spareroom is free. Think about how long you want each stay to be – the longer your lodger is with you the less cleaning/washing and admin!

How can I become a super host for Airbnb? ›

What is the Airbnb Superhost criteria?
  1. Response rate: You must have a 90% or higher response rate (within 24hrs)
  2. Number of stays: You must have completed 10+ stays that equal 100 nights or more.
  3. Cancelation rate: A cancellation rate of 1% or lower.
  4. Overall rating: A 4.8+ rating for the past 365 days.

What is a super host? ›

Not everyone is a Superhost. As a traveler, booking an Airbnb with a Superhost label means the owner of your property has met a series of requirements set by Airbnb. These distinguish hosts who are responsive and have high ratings, frequent reservations and few cancellations.

How much can I make renting a room on Airbnb? ›

Average Annual Host Revenue by Room Count: 2021/2020
ROOM COUNTAVERAGE ANNUAL HOST EARNINGS 2021AVERAGE ANNUAL HOST EARNINGS 2020
1 Room$8,586$4,680
2 Rooms$13,067$7,482
3 Rooms$18,026$10,915
4+ Romss$28,143$17,808
1 more row

What percentage does Airbnb take? ›

Airbnb charges hosts a service fee for each booking. What percentage Airbnb takes can vary, but it's typically around 3% for most hosts. However, Airbnb's commission can go up to 14% or more for hosts who have a Super Strict cancellation policy.

What is the 90 day rule Airbnb? ›

Airbnb doesn't allow properties to be rented out for more than 90 nights per year. If your limit for bookings is reached, Airbnb will automatically close your property until the end of the calendar year.

What is rental arbitrage? ›

Rental arbitrage is a real estate investment strategy that involves leasing a property and then renting it out to another person. It allows individuals to earn rental income without owning a rental property. As such, it's a shortcut to being a landlord.

Can I rent out my couch on Airbnb? ›

You may have even been tempted to get involved — extra money sure sounds nice — but thought you couldn't because you don't have a spare room. The thing is, though: You don't need a spare room. To host on Airbnb, all you need is a friend, a backyard or even a couch — plus a sprinkling of creativity and hospitality.

Do Superhosts get more bookings? ›

More bookings

It's your badge that is really going to make your profile and listing stand out. You'll also be featured to guests in search results and emails So, when you have reached the Superhost status, expect bookings and enquiries to increase.

Do Airbnb super host get discounts? ›

Superhosts earn a $100 Airbnb coupon every year that they keep their status. And when they refer a new Host to sign up, Superhosts get an extra 20% on top of the usual referral bonus.

What percentage of Airbnb hosts are super hosts? ›

As a Superhost, you may enjoy a variety of benefits directly related to your elite status. Remember, less than 20-percent of all Airbnb hosts earn Superhost status. The top benefits of having Superhost status include: Attract more guests with the Superhost badge.

How long does it take to become a Superhost? ›

To qualify, listing owner with an account in good standing who has met the following criteria: Completed at least 10 trips or 3 reservations that total at least 100 nights. Maintained a 90% response rate or higher.

How long does it take to be a Superhost on Airbnb? ›

To qualify for an Airbnb Superhost badge, you must: Host at least 10 trips, or have 3 reservations that total at least 100 nights. Maintain a 90% response rate or higher. Maintain a 1% cancellation rate (1 cancellation per 100 reservations) or lower.

How much do Airbnb Superhosts make? ›

According to Airbnb statistics provided by the platform itself, in Q3/2022 an average Superhost made 64% more revenue than a regular host. The one million Airbnb Superhosts collectively earned $23+ billion in income between October 2021 and September 2022, which averages $23,000+ per Superhost per year.

Can you make money renting rooms? ›

Renting out rooms for extra income can be a great way to help supplement household income or even become a full-time job. With the help of technology, it's easier than ever to find potential tenants and advertise rental properties online, making it a convenient and appealing way to make some extra cash.

How profitable is the average Airbnb? ›

The average net profit margin for an Airbnb business was -11%. This might seem shocking, but you need to keep in mind a couple of things. Once you add back in depreciation which amounted to 12%, Airbnb businesses are actually breakeven or slightly profitable on average.

How much do Airbnb hosts make on average per month? ›

What Is the Average Airbnb Host Salary by State
StateAnnual SalaryMonthly Pay
California$37,509$3,125
North Carolina$37,432$3,119
Massachusetts$37,405$3,117
Oklahoma$37,372$3,114
46 more rows

How much do Airbnb owners make a month? ›

Airbnb Owner Salary
Annual SalaryMonthly Pay
Top Earners$242,000$20,166
75th Percentile$125,000$10,416
Average$86,197$7,183
25th Percentile$26,500$2,208

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