The challenge of how to invest in Airbnb without owning property has probably flustered many entrepreneurs and small-time investors. On the surface, one may be quick to assume that it is essential to own real estate to make money through Airbnb. Interestingly, nothing could be further from the truth.
Breaking into capital-intensive investments like Airbnb can be pretty challenging. However, here are some merits of the no-property Airbnb business we are about to propose:
- Very easy to manage. Yes, it is not a passive income source, but it requires minimal effort.
- Low-risk investment due to the low initial liquidity required.
- It requires minimal cost as the investor does not have to buy a property to commence.
How To Invest in Airbnb Without Owning Property
Have you spent ages polling your savings together to buy the cheapest residential property on the housing market and rent it out for passive income? Sweat no further. Here are some easy fixes to your investment woes.
1. Invest in Someone Else’s Airbnb Business
It takes someone with an extensive network to exploit this route. Look for someone who is starting their Airbnb business but needs a little cash stimulus to get it off the ground.
The person would most likely be glad to have someone come along in their Airbnb investment drive. In addition, they’ve saved the trouble of going through loan paperwork to meet their startup deficit.
2. Buy Airbnb Stock
Another option is to go directly to the money market. Airbnb trades publicly (ABNB) and offers investors the opportunity to have a slice of the pie without setting up a full-blown business. As of April 2024, the ABNB sold for $164. However, Wall Street analysts project that the stock value will be as high as $300 by 2027.
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How to Start an Airbnb Without Owning Property
It is possible to start an Airbnb without a property of your own. However, it is not a zero-capital business. For starters, it is essential to seek out financing with favorable loan options. Usually, a good credit score is all you need to have your loan application approved.
Interestingly, there are more ways to secure financing for a vacation rental business than just loan applications. As an Airbnb prospector, you could obtain stimulus from private lenders. Besides, there are optimistic projections that mortgage rates will improve considerably in the tail-end of 2024. So, now might be a good time to invest in real estate.
How to Rent Out Airbnb Without Owning Property
As an investor, you may just like the human business side of the Airbnb model. We have some ideas on how to rent out an Airbnb without having a property to your name.
1. Become a Property Manager
Big-time Airbnb investors seldom have the time for meticulous property management. So, investors without the wherewithal to own properties could work as Airbnb managers. Such experience would help garner the requisite business knowledge before having enough funds to branch out independently.
2. Join a Vacation Rental Franchise
Despite not being a full-blown investment, managing Airbnb properties could still be overwhelming for new entrants into the vacation rental industry. However, such investors could sidestep this complexity by joining a vacation rental franchise.
Such franchises often have existing structures on the ground to help fresh managers and Investors have a soft landing. So, the telltale costs of initial Airbnb investment have little effect.
ALSO READ: Couple Narrates Why They Stopped Renting Their House as an Airbnb After 15 Years in the Business
How to Earn Money With Airbnb Without Owning Property
With all that has been said so far, it should no longer be a surprise that investing in an Airbnb without owning any real estate is possible. However, it is one thing to start a business and another to make money from it. Now, let’s look at some ways to make money with your Airbnb no-property business.
1. Offer an Airbnb Experience
Investors who have added skills or attractive programs could list them. Of course, experiences like yoga, city tours, and cooking classes would have to be ratified by Airbnb.
2. Start an Airbnb Cleaning Service
Many Airbnb guests struggle to do their laundry, some not because they’re lazy but because of the flurry of activities. Indeed, some Airbnb guests only visit the apartment to sleep and freshen up. So, doing their laundry is an open investment opportunity.
Not everyone would agree with this business proposition, but it does help to make money.
3. Become an Airbnb Consultant
Investors could become a consultant cum brand ambassador for Airbnb. They drive traffic for the company’s products and sensitize prospective customers to the benefits of the vacation rental service. Investors could even start an Airbnb rental arbitrage that rents from long-term owners and gives them out on short-term agreements.
4. Become an Airbnb Photographer
People who have booked at least one Airbnb apartment know that the listings come with glossy photos. However, many Airbnb hosts lack the gear or training to produce professional pictures of their property. This option could become an Airbnb side hustle for folks who already practice photography as a hobby and have basic gear.
Now that you’ve learned how to become financially independent on Airbnb without owning property, one more potential income source awaits. In summary, feel free to rid yourself of the mindset that making money off Airbnb without a property is impossible. It is possible; many people are doing it, and so can you.