The cost of living continues to rise rapidly in many cities around the world each year. Unfortunately, income is not keeping up with these rising costs, making people feel the budgeting pinch.
In 2023, the average U.S. household spent approximately 30% of its income on housing. When adding the costs of utilities, groceries, transportation, and other necessities, it can be challenging to make ends meet. This can lead to a lack of savings or even debt (talk about a big life stressor!).
Skyrocketing prices for buying a home, particularly in big cities, make renting the only option for many individuals, couples, and families. Traditionally, those who rent their living spaces have had limited options for reducing their housing costs and are at the mercy of the market. Thus, many people choose to live with roommates or in smaller, less desirable areas to save money on rent.
What else can renters do to offset these rising living costs without compromising their living standards? One solution is to consider Airbnb-friendly apartments.
How to Use Airbnb-Friendly Apartments to Offset Rising Living Costs
AirBnB-friendly apartments are a relatively new concept on Airbnb, implemented in 2022. The concept was designed with the modern city dweller in mind who wants to save and earn money.
By finding an apartment building that has specifically partnered with Airbnb, an individual or couple can rent an apartment for a longer term. Typically, these apartments offer 12-month leases with the possibility of being able to rent them part-time. Thus, they can then offer their apartment for short-term stints on Airbnb without worrying about any legal repercussions or pushback from the apartment managers.
Essentially, Airbnb-friendly apartments allow renters to become Airbnb hosts– something that was hard to do in the past when renting from a traditional landlord. This allows renters to use their apartments as a source of additional income, which can help offset rising living costs.
How Renters Are Using AirBnB-Friendly Apartments
Renters are using Airbnb-friendly apartments in various ways. A few use them as their primary source of income (not typical), while most use them to supplement their salary. They can rent the entire unit while they are out of town, a private room, and beyond.
For example, young professionals who work long hours and have limited time at home may choose to rent out their apartment on weekends or during vacations to earn extra money. Others may choose to rent out their spare room for short periods when they are traveling or away.
These opportunities provide a great way for people to save and make money while also having the flexibility to travel for work or vacation.
The Benefits of Airbnb-Friendly Apartments
There are several benefits to using Airbnb-friendly apartments as a way to offset rising living costs. First and foremost, it provides an additional source of income for renters, allowing them to save more money or pay off debt without needing to own the apartment.
Additionally, renting out an apartment on Airbnb can also help cover some expenses that come with living in an urban environment. For example, if you live in a city where public transportation or parking is expensive, hosting on Airbnb can help offset the cost by providing extra income.
Moreover, becoming an Airbnb host in your own apartment building allows you to build relationships with your neighbors and community. You can also act as a local guide for guests, sharing tips and recommendations for the best restaurants, sights, and activities in the area. It can be quite rewarding for hosts who love interacting with people and sharing their passion for a particular area.
Things to Consider Before Listing Your Apartment on Airbnb
Before diving headfirst into becoming an Airbnb host in your apartment building, there are a few things you should consider.
Firstly, make sure that your lease agreement allows subletting or short-term rentals. Some landlords may not allow this type of arrangement, so it’s essential to check before proceeding. But if yuo’re working with AirBnB’s apartment-friendly partners, then don’t stress it because the building has already agreed to rentals.
Secondly, consider any additional costs associated with hosting on Airbnb. These include cleaning fees, extra utilities, and potential wear and tear on your space. The apartment complex will also receive a cut of the Airbnb booking fees, so be sure to factor that into your earnings.
If you need help managing your rental while away or don’t want to clean your apartment between clients, you might also consider hiring a property management service. This can take all the guesswork out of renting and make it more passive for you at a reasonable price.
Lastly, consider the impact of having strangers staying in your home. While most guests are respectful and responsible, there is always a risk of damage or other issues. Make sure you have appropriate insurance coverage and communicate clearly with guests about house rules and expectations.
Looking at Success Stories and Numbers
Since the program’s inception in 2022, interest from renters in Airbnb-friendly apartments has soared. In its first year, Airbnb received over 3,000 requests from 850 U.S. cities for notifications and updates about available Airbnb-friendly apartment buildings. To meet this growing demand, Airbnb has expanded the program significantly. From its initial launch in November with 175 buildings across 25 markets, it now offers more than 250 buildings in 37 markets, totaling 80,000 units available in the U.S.
Numbers are looking promising for those who have become Airbnb hosts through their apartments. In 2022, the average Airbnb host in the US earned over $4000 per month. Talk about some nice pocket money!
There are tons of great stories on Airbnb shared by hosts. For example, one man rented his apartment while on vacation in Mexico, making enough money from his bookings to cover his entire trip. Another couple enjoys getting out of the city on the weekends and rents a spare room through Airbnb, covering their costs for a relaxing escape.
How Skye Management Can Help
Renting a room or apartment on Airbnb can feel daunting for first-timers. That’s where companies like Skye Management can help.
Skye Management is a property management company that specializes in managing properties for short-term rentals in the larger San Diego area, including Airbnb-friendly apartments. They handle everything from booking and guest communication to cleaning and maintenance, making it easy for renters to become successful Airbnb hosts without the stress.
With Skye Management’s help, you can confidently turn your Airbnb-friendly space over to the experts and enjoy all the benefits that come with it. Plus, their professional team knows the ins and outs of the industry and can help maximize your earnings potential.
Tapping into Income Potential
Airbnb-friendly apartments provide a unique opportunity for renters to offset rising living costs while also creating new streams of income. By partnering with Airbnb, apartment buildings are adapting to modern needs and providing tenants with more flexibility in their housing choices. For top-tier services, check out our vacation rental property management in Carlsbad or explore our professional vacation rental property management in Encinitas.
