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How To Make Passive Income
How To Make Passive Income
Contents
WHAT
IS PASSIVE
INCOME?
A business activity that you did not
materially participate in on a regular,
continuous, and substantial basis
during the year. It is earning money
with minimal effort.
Characteristics of passive
income
No active
involvement
maximizing
returns
short term
trade-offs
Early
Retirement
To find the best ways to make passive income, you need to start
with some clear goals and plans. You’ll need to know how much
you’re able to commit in terms of money and time. And you’ll
need to be prepared to make short-term sacrifices to meet your
long-term aims.
If at least one part of the idea doesn’ t spark joy o r f uel y our
passions, chances are it’s not going to work o ut. So, l ook
for an idea that you can see yourself doing fo r years. Even
if you can step back and let the business mostl y run it sel f,
you may still need to get involved occasional ly, so make
sure you pick something you’ll enjoy.
Brian Chesky
Nathan Blecharzyk
Now we can see that Airbnb is a company that lets people avoid
expensive hotels by staying at a more affordable short-term
rental when on vacation. This helps them save money, let's them
prepare meals on their own, and has a homier feel compared to
staying at a hotel.
The best part about making money with Airbnb is that it’s
relatively passive income. Passive income requires little to no
effort and lets you create multiple streams of income. However
planning is needed to make this passive income start
generating money.
When considering putting together your beautiful
home as the whole thing of Airbnb you have to bring in
attractive decor ideas to make your listing stand out.
This may include: Accent With Bold Colors,Use Hotel
Style of White Bedding, Add Greenery With Live Plants,
Use A Customized Sign With Your House Name, Add A
Cute Luggage Rack. This will improve the neatness and
comfy of your apartment.
The other issue is to offer the best amenities guests want. These
can be a pet-friendly space.Wifi,Free parking, A pool,A jacuzzi,
A kitchen, Air conditioning and Heating, just to mention a few.
Once these are put in place you are ready to go for property
listing.Let's get started on how earn passive income with
Airbnb:
If you want to create
a stream of income by
listing your property,
here’s how to make
money with Airbnb
and earn passive
income:
For perfect timely and competitive pricing you can make use of the
smart pricing
tool. Airbnb’s pricing tool takes into account over 70 different factors
to determine the best price for each available night on your
calendar. Your pricing will automatically update
depending on things like:
Each review helps guests decide whether to book with you. Airbnb
data suggests that a higher number of positive reviews is correlated
with higher earnings, and goes a long way toencourage more
prospective guests to stay at your property versus another one. This
directly impacts how much you can make with Airbnb.
To encourage positive reviews, hosts generally are
recommended to communicate with guests regularly, from
booking, throughout their stay, until checkout using Airbnb’s in-
app messaging. You should tell your guests that you will make
yourself available to answer their questions immediately, and if
something ever needs fixing, you will address it immediately.
A few days after the guest has checked out, email or text
message the guest thanking them for choosing your place to
stay and remind them that if they enjoyed their stay that it
would be great if they could click on a link to provide a review of
your services. Thanking your guests will boost the probability
that your guests will also give you good reviews.
For you to get these ratings make sure you are always on point
when it comes to cleanliness because guests will expect the
clean and tidy space they see in your listing photos, the value of
your space because guests rate your space based on their
perception of whether your pricing was a fair reflection of your
offering and the practice of excellent hosting communication to
ensure guests’ needs are met.
In order to make money with
Airbnb, you will incur some
expenses. For example, cleaning
fees, costs with stocking the
property , toiletries, welcome
snacks. For you not to overspend
you have to make a budget
tracker on excel. You can make
use of a personal budget
template like the one below.
This Excel template can help you track your monthly budget
by income and expenses. Input your costs and income, and
any difference is calculated automatically so you can avoid
shortfalls or make plans for any projected surpluses.
YOUR OWN PLAN TO
DO YOUR AIRBNB
Airbnb situated itself as a solution for both renters and providers
worldwide. Aside from guests scoring cheap accommodation for a
night or two, homeowners can also rent their available space and
earn some cash on the side. However, starting your own Airbnb
doesn’t require you owning a property only, you can make passive
income on Airbnb Arbitrage.
3. Paint
Paint is one of the few things that tenants directly notice, and
notice fast So, you will need to ensure that the colours in your
house are never worn-out. Matching wall colors according to
the vibe is essential. People don’t see wall colours – they feel
them. So you must give out positive energy from the way you
paint your walls. If you are not good at matching colours,
sticking to white will be best.
4. Maintenance schedule
As the responsible owner of Airbnb property you should create
property maintenance schedules such as replacing carpets or
repainting walls. The schedule will depend on the general wear-
and-tear on each individual unit, but professional property
managers recommend doing these sorts of projects ( interior
painting, carpet replacement) about every three years unless
needed sooner. Other issues can be addressed before they
become serious problems by following a regular maintenance
schedule.
WRITE A
DESCRIPTIVE
LISTING
Before you write up your listing, think about the type of guest
that will appreciate your space the most. Be clear with what you
are offering and manage guests’ expectations. Listing can be
easy for people to find the information they are looking for if one
follows the structure of Brief introduction which is selling points
of your property in a nutshell,Room by room descriptions,
Outdoor spaces like garden or swimming pool, sunbeds or
children’s play equipment, and Location which includes whether
it’s close to public transport, popular restaurants or walking
trails.
1. Elegant Art Decor Home
with garden
Examples Enjoy the elegance of a by-gone
of listings era while staying in this Art Deco
home. Beautifully decorated and
featuring a sweeping staircase,
original stained-glass windows,
period furniture, and a
Entry stunningly unique green-and-
white tiled bathroom.
https://bit.ly/3EsZALd
Kitchen
Dining room
Bathroom
Bedroom
Entry Kitchen
Bedroom
Dining room
Full Bathroom
Pretend you are lost in a magical forest as you perch on a log or curl
up in the swinging chair. Soak in the tub, then fall asleep in a heavenly
bedroom with cloud-painted walls and twinkling lights. And when you
wake up, the espresso machine awaits. https://bit.ly/3lq1Yth
3. Romantic stone house with ocean views.
Unwind at this stunning French Provencal beachside cottage. The
house was lovingly built with stone floors, high-beamed ceilings, and
antique details for a luxurious yet charming feel. Enjoy the sea and
mountain views from the pool and lush garden. Although shops and
restaurants are only a five-minute drive away, the area feels peaceful
and secluded. https://bit.ly/3EsZALd
ENTRY KITCHEN
DINING BEDROOM
BATHROOM PATIO
HANDLING
MAINTENANCE FINDING HIGH- LISTING AND
AND QUALITY MARKETING
MAINTAINING TENANTS ADVANTAGES
PROPERTY
VALUEV
QUICK SUMMARY
The best part about making money with Airbnb is that it is relatively
passive income, requiring little to effort but letting you create
multiple streams of income.
If you have a second property or a spare room you don’t use, and
want to know how to make money it’s high time you switch to
Airbnb. Maximize returns with passive income Airbnb.
The Airbnb business is definitely a lucrative one. But how do you get
into the short-term rental game if you don’t have enough capital to
buy a short-term rental property? You can make money on Airbnb
without buying property, starting with minimal start-up capital and
very low risk through a business model called rental arbitrage.
However, when it comes to short-term rentals, having no money to
buy property is by no means a barrier to entry because rental
arbitrage makes it possible.
For you to turn your house into Airbnb, you have to first carry out a
proper research on location of the property and the potential
customers that might need your services, competitive rates and
seasonal fares. This will guide you not to operate at a loss.
Once you are geared for listing your property to Airbnb, make sure
that it is clean and well refurbished. However, stick to cheap ways of
sprucing your place so not as to overspend.