October 18, 2023 12:22 pm

Insert Lead Generation
Nikka Sulton

Here’s how to make money on Airbnb without owning a property in the UK. Property Investing is not just about owning property, it’s about controlling an asset to make income.


When it comes to making money through Airbnb, owning property is not required. Instead, you can sublet your space, house sit unoccupied Airbnb, manage properties, and do a variety of other things!



Do You Have to Own a Property to Earn with Airbnb?


As previously said, you do not need to be a homeowner to begin earning money on Airbnb. Furthermore, in most circumstances, you do not need a large sum of money to get started with your Airbnb venture. There are various additional clever and inventive approaches to entering the vacation rental sector and establishing a thriving business.


TAKE NOTE: Before you begin with this strategy, you should evaluate the legal rules and regulations, as some cities do not permit subletting. Furthermore, before you attempt to rent out your rented flat you should seek approval from the owner. Long-term rental lease agreements frequently prohibit tenants from renting out houses on listing sites.


Ways To Make Money With Airbnb Without Owning A Property:

If you can’t afford to own property or aren’t interested in doing so, there are numerous other ways to generate money using Airbnb.


1. Rent your rental

So, you rent a house for a long period of time (say, a year maybe) at an agreed-upon amount with the owner, and then you profit by listing the property on Airbnb at a rate that covers your rent and then some! This is often referred to as “rental arbitrage.”


This one isn’t for everyone, because you’ll need to get approval from your landlord before subletting their house. If your landlord isn’t happy with the idea, offer to give them a percentage of your profits – this may help you close the sale.



2. Property management

You may not own property, but that doesn’t mean you can’t manage someone else’s. There is a market of homeowners who wish to list their properties on Airbnb but lack the time or expertise to do so properly. This is when you come into play.


If you have the time, you can be in charge of listing the properties, communicating with guests, dealing with any issues that arise, and ensuring the property is clean and ready for new guests.



How to start an Airbnb business:

1. Find out out if you need permission to make the rental an Airbnb

Gain permission from your landlord, co-op board, or homeowners association, if applicable.

  1. Examine your lease, which may contain a clause for subletting.
  2. Check with your homeowners association to see if there are any limits on renting out your house on a short-term basis.


2. Prepare you Airbnb Space: 

Whether it’s a single room with a shared bathroom, a private wing with its own entrance, or your entire home while you’re away for the weekend — you’ll almost certainly need to invest in the space. Consider the following costs:


  1. Installing a keyless lock to facilitate check-in.
  2. Purchasing items that will make the home more pleasant for long-term visitors, such as a refrigerator, microwave, and Keurig.
  3. Putting up a wall to divide a room.
  4. Making a separate, furnished television room.
  5. Providing clean sheets, towels, and toilet paper to the space. (In order to receive the greatest scores, you must go above and beyond the basics.)
  6. Increasing utility bills.
  7. Cleaning services are available between reservations.
  8. Making up for a co-host (see below).
  9. Taxes and the Airbnb host fee are included.


3. Set your price

Consider affordability, audience, and market.

  • The average Airbnb fee is 3% of the booking subtotal. The price is higher if you are an Airbnb Plus host, reside in Italy, or have a particularly tight cancellation policy. Your guests see a higher listing price than you earn.


  • Airbnb stats illustrate how your nightly costs compare to other Airbnbs in the region, as well as whether you might consider lowering (or raising) your prices on specific days of the week or during periods of high demand. You can set a minimum number of nights that visitors can spend at your location, which might help offset the cost of turning over the space (cleaning and upkeep).


  • Airbnb charges guests prior to arrival and pays you your money 24 hours after your guest checks in, using the method of your choice (PayPal or direct deposit, for example). Your Airbnb cannot take cash payments. Visa, Mastercard, American Express, Discover, debit cards, Apple Pay, Google Pay, and PayPal are all accepted.


  • Other elements that may influence your payment include weekly or monthly discounts, weekend or seasonal pricing, remuneration for co-hosts you hire, and VAT — value-added tax — in certain non-US countries locations.


4. Enlist a co-host

You might want to seek the help of at least one additional person for:

  • Emails and other exchanges.
  • On-site repairs or requests.
  • Important matters.
  • Guests can benefit from neighborhood-specific advice.
  • The procedure for checking in.


Add your co-host (up to three) to your listing, and make sure they understand Airbnb’s Co-host Terms of Service. You and your co-host will decide how much each reservation will cost. If you can’t find a reliable co-host, third-party companies can assist hosts with enquiries, cleaning areas, and other tasks.



How much are Airbnb taxes?

  • The sales tax
    You may be required by your city to collect sales tax or gross receipts tax from visitors, and you must inform them of the actual amount before they book. You might charge that tax to your guests when they book.


  • Income taxation
    Because operating an Airbnb can qualify you as a small-business owner in the eyes of the IRS, you must record your Airbnb revenue and costs on your federal tax return. If you earned more than $600 during the calendar year, Airbnb will send you (as well as the IRS and your state) a Form 1099-K. A 1099-K form assists you in calculating and reporting your business income.


  • Deductions for taxes
    Certain expenses related to your Airbnb business may be deductible on your tax return. These costs could include:
    1. The property’s mortgage or rent.
    2. During stays, utilities are consumed.
    3. Insurance for your home.
    4. Property maintenance.
    5. Cleaning services are available.



More Property Blogs HERE: 

How to Reduce Tax on Rental Income

Challenges of Owning A Second Home

What insurance is needed for a buy-to-let property?

What is the difference between remortgage and refinance UK?

Buy Refurb Refinance Rent (BRRR) Explained

Section 24 Tax Guide for Airbnb Hosts

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