How to be profitable on Airbnb and Booking?

How to make money by renting your real estate on Airbnb or Booking? That's the question we're trying to answer!

Any economic activity in which we embark is underpinned by a willingness to make a few profits. The same applies to the furnished rental on the Airbnb platform or even Booking, HomeAway, etc., which has taken unimaginable proportions in some parts of the world. However, with the increase in the number of guests on Airbnb, how can you also be profitable? Here are some tricks that could get you out of the red zone.

What revenue does Airbnb and Booking have to expect?

This is the first question that comes to mind when you want to embark on the seasonal rental on Airbnb or Booking. Indeed, it is essential to know before degaining dozens of euros of investments, how much one is likely to win. A data is certain that said, the size of your income depends essentially on the location of your accommodation.

Seasonal rental is logically more profitable in large cities and tourist hubs such as Paris, Bordeaux, Nice or Lyon, Marseille or Strasbourg. Compared to cities such as Rouen, with housing in a large city one can multiply between 1.5 and 3 times its Airbnb/Booking income.

To be profitable, improve your occupancy rate

The occupancy or filling rate is a data that varies according to two factors. Whether the accommodation is located in seasonal rental-potential cities, or in rental-potential cities in the year. To illustrate this, we will say that Nice or Biarritz are cities where the rental of rooms, studios, apartments or villas Airbnb is done seasonally. Only the warmest attract the crowds in these cities. While Paris or Bordeaux attract visitors throughout the year.

This filling rate is between 40% for seasonal cities and 64% for tourist cities during the year. However, the statistics agree that Lyon is the city with the best filling rate, and therefore profitability. The city of the Lumière brothers is heeled by Strasbourg, Toulouse or Cannes. Cities such as Nice and Montpellier are in second place and have a 50% filling rate.

You will have understood that it is important to have a good filling rate to aspire to hold substantial gains by renting your accommodation on Airbnb or on Booking .

Especially since this filling rate is partly conditioned by the location of your Airbnb accommodation. A property located in the Marais district will definitely not attract the same number of potential tenants as another property located in the 14th arrondissement of Paris.

Optimize your accommodation to increase your income

This second trick is probably the most important of all if you want to make a fortune by renting your accommodation on platforms. Since yes, despite legal measures put in place by the Administration it is always possible to merge the ends of months or to offer a holiday under the sun thanks to Airbnb and Booking. How? It’s simple in fact.

As hammered above, you need a good occupancy rate or filling rate in the first time. This goes through the selection of a well located accommodation. Playing radine by acquiring a property in a little interesting area (for little expensive) will only lead your Airbnb adventure.

In a second time, it is necessary to optimize your accommodation. There are not 50 ways to do this, we will need to invest. Invest first in the purchase or rental of a property with an optimal location. But also and above all invest in the valorization of your property. Which says valorization necessarily says interior and exterior decoration. This investment is not very expensive, as it will increase the number of visits to the announcement of your accommodation. Number of views likely to be converted to recurring reservations.

A good management of your property

Third and final tip of this topic, good management of your accommodation is essential. A housing whose host is not reactive or belligerent will have little chance to make a figure. You will need time to refine each day a little more your ad and make it attractive. As well as time to take care of your property.

If you do not have enough time, a non-executive management residency solution via a concierge . This will take care of the cleaning, discount + recovery of the keys and especially boost the visibility of your Airbnb accommodation and increase your winnings. Is calling an Airbnb concierge profitable?

Seasonal rental: case study

To illustrate the plethora of words shed above, we will take the example of a apartment in Paris . Assuming all the steps related to the Airbnb rental of an apartment in Paris have been carried out. If you invest for example 300,000 euros in the purchase of a property in the capital, by renting 20 weeks per year your apartment against a rent of 700 euros per week (or 100 euros per night) it makes you an annual income of 14 000 euros.

The cost-effectiveness of this accommodation is calculated as follows: 14 000 / 300,000 * 100 = 4.6 % . A rate of profitability that only applies to gross revenues.

To achieve this rate of profitability, it is necessary to have a well-located accommodation and good management. Ultimately, the profitability of your Airbnb or Booking rental is conditioned by the rental of this rental property, and the dynamics of your management.