How to Become an Airbnb Host Without Owning Property

Sure, becoming an Airbnb host sounds like a great money-making idea until you reflect on just how expensive it is to buy properties in various cities across America. The high cost of being a property owner may discourage many who would make great Airbnb hosts from even pursuing the venture. Well, you don’t have to be one of them if you are great at short-term property rentals, because I am going to tell you how to become an Airbnb host without owning property!

You Have Many Options

Yes, since you’re essentially becoming a business owner when you become an Airbnb host, you can take advantage of many business models when exploring your options regarding how to become an Airbnb host without owning property. I am going to discuss each model in more detail. 

Rental Arbitrage

Basically, rental arbitrage involves you signing a long-term lease for properties and then listing them for short-term stays. It is a great way for you if you have excellent practical business acumen, but are short on cash. However, since rental arbitrage rules have changed this year, and this has affected the profit margins, it’s no longer a simple way to make lots of money quickly. 

Some people call this business model “Airbnb rent to rent.” It may seem like an ideal, no-strings-attached way to make money by being a host without having to assume the liabilities and risks associated with being a renter on the surface, but there are some stipulations. The first is that you are responsible for fully furnishing them. And seeing as you’re competing with the high-end and luxury short-term stay industry, it’s easy to see how rental arbitrage can get expensive fast. 

If you’re working this model right, you make much more money being a host than you have to pay in leases and other expenses. But that’s in an ideal world, and life’s generally far from ideal. It’s a legal business model, but unfortunately, some cities, municipalities, and even jurisdictions have regulations that restrict and even disallow it. 

It depends on many factors:

• Your lease(s)’ terms. 
• Whether or not your landlord will let you host short-term stays.
• The types of permits for short-term stay rentals that your city requires. 
• The restrictions that your buildings have (if any). 

These factors, and more, are some of the many reasons why it’s always wise for you to get permission and an agreement in writing (preferably in the form of a formal and legally enforceable contract) before you start listing properties that you don’t even own. Doing so can save you from a lot of headaches later on. 

Your contract should include the following components:

• The landlord’s stated permission to list the property as a short-term stay on various websites.
• Assignment of roles and responsibilities to specific parties for maintenance, repairs, and other work needed to upkeep the property. 
• Business interruption insurance clauses.
• Health and safety protocols. 
• Routine rent review mechanisms. 
• Detailed financial clauses regarding deposits, utilities, and legal fees.
• Cleaning, furnishing, and marketing specs. 

Note: All components must comply with all short-term rental regulations for your city. 

How You’ll Benefit From Rental Arbitrage

It’s about an ‘it sounds too good to be true proposition’ as you can get as an Airbnb host. Here are some of the advantages of the rental arbitrage model:

• Start-up costs are low–You don’t need lots of money to be an Airbnb host because you’re not buying physical properties. 
• Versatility–You can choose to list any type of property anywhere since you don’t own it. So, you have many more options for properties and locations than you would if you were a real property owner. 
• You can (potentially) make a lot of money–This is the main benefit that entices many to the rental arbitrage model. You have fewer expenses since you may not be paying for all of the repair, maintenance, and upkeep expenses. However, you can raise your rates and rent to more guests, especially during peak seasons.
• You control the entire booking experience–Leasing the properties allows you to have more control over every step of the guest experience. That dramatically increases the chances of you being able to offer outstanding and memorable experiences for all of your guests, and remember that happier guests tend to leave great reviews and ratings much more often. 

There is a Downside to Rental Arbitrage 

The rental arbitrage model does have its drawbacks; here they are:

• The risks are high–Yes, it’s riskier in nature because you don’t actually own the property. So, the real property owner can take legal action against you if guests damage the property. Also, you must pay for rent, utilities, repairs (in the event of property damage), and any legal action the owner wants to take because you manage the properties. 
• Leases tend to have restrictions–Rental arbitrage may be impractical because of all of the subletting restrictions that most landlords have. So, if you are going the rental arbitrage route, you need to read all terms in your lease agreement carefully, especially the fine print. 
• Competition is stiff–A lot of Airbnb hosts chase after the rental arbitrage model because they may see it as a more ‘no strings attached’ proposition. That, when combined with the fact that local laws, rules, and subletting clauses tend to restrict it in many places, means that there’s a lot of competition for fewer opportunities. Part of that is because vacation rentals have gained popularity in recent years. So, more people see rental arbitrage as a way to make money without assuming as much liability or debt.
  
  Don’t be surprised if more competition forces you to spend more time and money on marketing the properties and on upgrading them to offer the ‘ultimate guest experience.’
• You may not call the ultimate shots regarding property maintenance and upkeep–You don’t own the property, so you don’t have complete control over the occurrence and timing of repairs, maintenance, and upkeep to properties. 

Co-Hosting

The co-hosting option allows those who want to know how to become an Airbnb host without owning property to make money without assuming all of the debt and responsibility associated with being a traditional Airbnb host. If you are one of these people, pay special attention to this section because it will inform you of a great way to supplement your income.

You’ll work for an Airbnb host if you are ever a co-host. You’re responsible for managing your boss’s listings and maintaining/upkeeping his or her properties. You’ll help your boss out tremendously by doing a lot of the grunt work for him or her, leaving that person to enjoy his or her life more. Make sure that your fees are in the market range for what Airbnb co-hosts in your area normally charge. Doing so will increase your chances of enjoying steady employment. 

The good news is that Airbnb lets you pick the neighborhood(s) that you want to co-host for. That helps you and your boss out a lot since you can choose to work in localities that you’re most familiar with. Airbnb now helps property owners find good co-hosts. Helping your boss out a lot means that you formally and officially represent him or her and his or her business. If you guessed that most co-hosts have a lot of work to do, you’re absolutely right. 

It’s time to list the many tasks you’ll be undertaking as an Airbnb co-host:

• Guest messaging and support–This job entails responding to inquiries and requests for bookings; answering any questions before, during, and after stays; emailing check-in forms and house rules; emailing or texting arrival notes; dealing with late check-in or check-out requests; managing guest feedback and reviews; and encouraging reviews. 
• Managing and updating rates–You’ll be updating rates to make sure that they are competitive. 
• Manage property availabilities–You’ll be deciding when to keep properties open and when to close them according to cleaning schedules, personal needs, or booking trends. 
• Managing and cleaning properties–Expect to be scheduling and supervising cleaners between stays; restocking supplies (like towels, toilet paper, and tea); doing walk-throughs to check for property damage or missing items immediately after check-out; managing maintenance and repair work.
• Performing various support tasks–You may be asked to be physically present to check guests in; and your boss may leave you in charge of checking smart devices to see if they are working properly.
• Managing listings–Your boss may ask you to create and improve upon listing descriptions and their photos; manage the dates when properties are available; 

Note: Airbnb owners are more likely to hire people with excellent time management and organizational skills as co-hosts. Owners look for people with the following traits as co-hosts as well:

• Positive attitude
• Willingness to do much more than the required
• Excellent at managing time
• Highly organized
• Excellent at multitasking
• Excellent project management skills
• Strong interpersonal skills
• Excellent people skills
• Outstanding problem-solving skills

Reasons Why You Should Become an Airbnb Co-Host

There are many advantages to becoming an Airbnb co-host. I will list each one in detail.

Free Up Time and Energy for the Airbnb Host

Since you’re taking care of the key tasks for the Airbnb host, your boss has more time to focus on maintaining the properties’ outstanding reputations and doing various types of marketing to keep the Airbnbs constantly booked. 

Airbnb hosts can even spend more time on other businesses because you’re helping him or her out so much. They’ll have an easier time managing multiple properties simultaneously as well.

Get Paid Training

Becoming a co-host is an excellent way to prep for the corporate world. Not only do you get paid reasonably well, but you’ll also pick up lots of valuable skills like dealing with multiple personalities, working in a stressful and fast-paced environment, paying attention to the details, and more! You’ll be gaining a broad set of skills that can be used for any job and any work environment. 

Use Local Knowledge to Create Outstanding Guest Experiences

Use your knowledge of attractions in the area to point guests to wonderful experiences. Guests will reward you and your host with five star reviews for being given amazing customer experience and having all of their needs taken care of. 

Disadvantages of Being an Airbnb Co-Host

Being an Airbnb co-host may not always be as rosy as it’s marketed to be. I am going to discuss some drawbacks to being an Airbnb co-host now. 

You May Make Costly Errors

You may make bad mistakes that could compromise your host’s reputation and tank his or her ability to attract consistent and long-term booking. Some examples are double booking rooms and advertising unavailable services. 

Remember that co-hosting doesn’t really benefit your host if you’re a poor communicator, can’t sync calendars, or have both issues. 

You Won’t Make As Much Money

You’ll be sharing revenue with a host who will likely keep the lion’s share of the proceeds simply because he or she owns the properties. So, co-hosting may not be an ideal option if you have to pay lots of bills. You may want to learn about another way how to become an Airbnb host without owning property. 

You Need a Solid Reputation

The reason why you need a solid reputation to be a co-host is because your boss needs to trust you. You’ll have issues if you’re not completely reliable or responsible. It can be hard for Airbnb owners to find professional co-hosts; (who tend to be more reliable and responsible than friends and family) that’s why they may not pursue the co-hosting option frequently. 

There are Legal Considerations

Your host may be taking a legal gamble by bringing you on as a co-host. It begins with tax reporting–hiring a co-host can complicate things when an Airbnb host files a tax return. Disputes over common property issues like property damage or guest injuries may only worsen the host-co-host relationship. Finally, hosts take a big risk with privacy issues, safety concerns, noise complaints, local zoning laws, and HOA rules when they hire co-hosts. 

Partnering With Property Owners

If you want to know how to become an Airbnb host without owning property, the partnership option may be for you. Airbnb encourages collaborating through partnerships because it realizes that the vacation market is vast and complex. Airbnb grew so big so fast precisely because it partnered with big players in the rental market–think large organizations like FIFA, tourism boards, and boutique hotels, and that’s just the beginning. 

You can make the same logic work for you by partnering with an Airbnb host. 

Managing Corporate and Vacation Rentals

You can make good money managing corporate and vacation rentals without investing much to any money in Airbnb properties. You’re essentially a third-party services provider for Airbnb owners. Your main job is to generate constant revenue for your boss by keeping the properties in good condition. It’s a great way to generate a decent income stream (passive income) without investing many resources. 

Pros:

• Allow property owners to concentrate on their core competencies–You help property owners out by letting them own more properties simultaneously. It’s a win-win situation because both you and they make more money. Your boss will get better guest reviews by keeping them happier. You play a huge and vital role in keeping the properties that you manage constantly booked. 

• Airbnb owners can market properties better–Your boss can concentrate on the key and core tasks involved in running his or her business because you’re taking care of the admin and/or more mundane responsibilities. That helps him or her generate better quality leads and more bookings by freeing up time for marketing and other promotional activities. 

• Boost bookings faster–You can create outstanding customer experiences if you have practical sense and good people skills because you’ll help guests check in faster and make the entire experience pleasant. That creates happy guests who are more likely to book with you again and send you referral business. You’re also doing customer service by communicating with guests and cleaning and maintaining the rentals. 

• Boost listings’ SERP quickly–You’ll get your boss more listings faster because you know how to rank his or her properties high on search engine and websites. 
• Follow laws and regulations better–Your boss can be forced out of business fast for not complying with Airbnb laws and regulations. Fortunately, your management experience and expertise will help him or her stay compliant better. 
• Prevent expensive repairs–Your boss won’t be spending precious time and money on costly repairs and maintenance because you’ll be spotting and resolving simple issues before they can snowball into more costly issues.

Cons:

Unfortunately, there are some downsides to managing Airbnb properties. I am going to explain them in some detail now. 

• You may spend some of your own money–Yes, you read that right. Chances are, you’ll be spending your own money maintaining and repairing properties that aren’t even yours. Some would-be property managers don’t like that idea at all!
• You have no control over what happens to the properties–Since you don’t legally own the properties, you have no real say in what your boss wants to do with them. You can only offer inputs and hope for the best!

Airbnb Property Manager’s Tasks

I’ll list Airbnb property managers’ generat tasks in more detail so that you can decide if it’s a role you want to take up. 

• Optimizing and listing properties–You’re doing more of the grunt work as a manager. That involves the somewhat cumbersome and time consuming job of listing properties and making sure that they rank as high on search engines and key websites as possible. You’ll be describing the properties vividly, using emotional and enticing language–you’re trying to sell potential guests on an amazing experience after all, and appealing properties are what create the ultimate guest experience.
  
  You’ll be attaching professional photos showcasing key features of the properties since people are much more visually oriented. You’ll be strategically inserting popular keywords to help the properties rank higher faster. 
• Doing online and Social Media Marketing (SMM)–Content marketing is at the core of online marketing. So, your boss may ask you to write blog posts with tips for guests staying in Airbnb rentals. That helps create a more loyal following faster that will be happier to click on and book listings. Social media marketing piques readers’ curiosities and helps them ‘stay in the loop’ regarding developments and trends in your properties. 
• Managing revenue and adjusting prices and pricing strategies–The Airbnb industry is very competitive. So, you’ll need to adjust your rentals’ prices during peak seasons and holidays to attract the greatest number of guests possible and still make more money. I discussed that in detail in another blog post. You’ll be managing revenue, so it may not hurt to understand the basics of bookkeeping. 
• Commucating with guests and managing turnover–It’s your job to have Airbnb’s cleaned once a guest moves out. You’ll also have to communicate with guests on all matters promptly and professionally. 
• Managing regular maintenance and cleaning–You’ll have to find professional cleaners and maintenance people. You’ll be communicating with them regularly, making sure that they show up on time, managing them, and checking their work to make sure that they have done a great job. 
• Providing guest support–Your guests will be calling you up and asking for solutions if htey find nasty pests in their rental. You’ll have to respond quickly and appropriately. The same applies for other guest support services, like helping them out and resolving their issues. 
• Complying with laws and regulations–This is a significant task since your boss can be forced out of business fast for noncompliance. You’ll need to research and comply with laws, rules, regulations, and tax laws. 
• Responding to guest reviews–I have already explained why you should respond to guest reviews quickly. Quick responses and actions show guests that you genuinely care about them and their issues. They will reward you with repeat and referral bookings. 
• Dealing with tax issues–You’ll have to collect taxes and send the money to appropriate authorities by their deadlines. 
• Protecting properties from damage–You’ll protect your boss by signing his or her properties up for damage protection insurance or insisting that guests provide damage protection deposits when  booking a property. 
• Keeping Bosses in the loop–Your regular reports will constantly update your boss on the state of his or her properties. 

Hosting Shared or Unconventional Spaces

Turn the guest room or any other room that’s always empty in your house or condo into an Airbnb space. If you want to know how to become an Airbnb host without owning property, that’s a great strategy. You can get this idea to work even if you’re not a homeowner. Just run the idea by your landlord, or better still, make a stunning presentation to landlords near you. 

You probably need to tell them that you’ll handle all of the tasks associated with owning and managing Airbnb properties to get them to say, “Yes!” However, if you are successful, it’s a great way to earn passive income without investing any of your precious time and money in buying properties up and converting them into Airbnb rentals. 

Pros:

• More flexibility and control over the property.
• Easier property maintenance.
• More flexibility in pricing. 
• An excellent source of passive income. 
• Outstanding networking opportunities.
• Leverage Airbnb’s popularity to get initial bookings.
• Focus on branding by creating unique guest experiences. 

Cons:

• Navigating around strict city short-term stays laws. 
• Attracting less than desirable guests.
• Dealing with guests who steal more than towels and toiletries.
• Managing 24/7 maintenance issues. 
• Spending lots of money on maintenance, especially initially. 
• Finding time to commit to a 60-hour a week job. 

Starting an Airbnb Cleaning Enterprise

Not surprisingly, many to most Airbnb hosts hire a professional firm to clean their properties between stays. I even recommended doing that in my last blog post. So, you have the perfect chance to become an Airbnb host without buying up expensive properties if you start an Airbnb cleaning business. 

Just make sure that your business is fully licensed, insured, offers reasonably priced services, and has standards that match the competitions’ (standards). You’ll get to be a host only if you’re professional, do a great job cleaning, and reliable. Becoming an Airbnb host through cleaning is a numbers game–the more clients you have, the more likely it is that someone will ask you to manage their properties as well 

Hosting Unique Airbnb Experiences

I am going to explain how to become an Airbnb host without owning property–it’s to host unique Airbnb experiences. It’s an ingenious source of steady passive income, especially if you have any travel industry experience or connections. You can arrange tours to local restaurants or attractions like wine tasting events, zoos, or museums. 

All you have to do is figure out which niches and presentation skills you have. Then, advertise and highlight your services in engaging and informative listings. You want to research market rates in your area to make sure that your prices are competitive. Finally, make sure you have everything ready and needed to create outstanding guest experiences. 

Here are some useful pointers if you want to know how to host unique Airbnb experiences:

• Make your experience title attractive to hook readers in.
• Describe exactly what your guest experiences involve, and go into as much detail as possible. 
• Explain where the experiences will take place. 
• Inform guests regarding items they should bring to enjoy the experiences. 
• Post several professional and enticing photos of people engaging in the experiences–to make them more attractive to the guests. 
• Inform guests about the minimum age to participate. 
• Tell guests if they need to have a certain level of a particular skill to get the most out of the experiences. 
• Include the maximum group size in your marketing materials. 
• The start and ending time. 
• Guest rates.

Pros:

• Expand your customer base by reaching out to new audiences.
• Test pilot new tours. 
• Take advantage of flexible schedules.
• Earn stable passive income. 

Cons:

• You have to think of unique and creative experiences–they can’t be easy to Google.
• The experiences must follow all of Airbnb’s unique experiences guidelines. 
• Airbnb will take a 20% cut. 
• You need to track bookings yourself.
• You must host the experience, even if only one person signs up. 
• Airbnb can be a risky platform to use. 

FAQs

Do I need to own property to be an Airbnb host?

No, you don’t need to own property to be an Airbnb host. I have already given you many tips on how to become and Airbnb host without owning property. 

How do you do rent arbitrage?

Basically, you lease or rent property from a landlord and then re-rent it through Airbnb. You keep the net profits. 

Final Words

You now know how to become an Airbnb host without owning property and you have many options to do so. Now, it’s time to take action if you decide that this is a path you want to pursue.