Benefits of Turning Your Home Into an Airbnb
Airbnb is a convenient online service that allows you to rent out a room or property on a short-term basis. After you create your own profile on the Airbnb website, you will be contacted directly by users who want to rent the space you are offering. You are responsible for arranging the terms and price of the rental, as well as the preparation and cleaning of the room or property. The service will charge a three percent commission on the money made from your guests. You will find that many people use this service both as hosts and guests. If you are an older adult, Airbnb can also be an excellent opportunity for you to utilize extra space in your home. Before enlisting, you should make sure your city will allow short-term rentals of this nature and determine whether you will need to spend anything on making a room suitable for renting. However, for many older adults, the benefits of turning homes into Airbnb properties usually far outweigh the challenges. Here are a few ways Airbnb may benefit you.
Negate Your Decreased Income
You may find that as you age, your income decreases significantly. This can occur because you may be reliant on low-yielding investments or an unpredictable stock market. You may also be attempting to pay off your mortgage and spending a far larger portion of your income on mortgage payments than you had ever intended. By turning your home into an Airbnb, you may be able to provide yourself with enough extra money each month to cover your decreased income. This way, you can reduce the risk of having to move out of your home or having to refinance your mortgage.
Utilize Skills and Assets
Airbnb is part of what is known as a “sharing” economy, aptly named because its participants benefit from the assets and skills they have to share with others. As an older adult, you will have more to share than many other participants in this economy. If you own your home, it is an asset you can utilize to its full potential. Any business expertise you have gained over the years can be used to run your Airbnb efficiently and effectively. Even the experience you may have gained as a host at events in your home will give you a competitive edge in the rental market.
Low Level of Effort
If you have been looking forward to retirement as a chance to relax or if you suffer from ill health, you are unlikely to want a job that requires a great deal of effort. Airbnb hosting can allow you to make an income with very little effort. You will need to post your listing online and contact potential guests. There will also be responsible for cleaning, stocking and a few administrative tasks. However, the effort does not go much beyond this, unless you want it to. You can also help keep your required tasks to a mimumum by setting strict rules for your guests. For example, you can specify a maximum or minimum night stay, restrict alcohol or smoking on your property and set a limit on the number of guests allowed.
Provide for a Longer Life
The average life expectancy of Americans has been steadily increasing and may increase even more in years to come. The way your pension and retirement plans have been set up may not always account for this. After retirement, you may find that you still have decades of life left. If you are relying on a lump sum of money to see you through your retirement years, you could struggle financially. Airbnb can afford you an opportunity to supplement your income, helping your 401(k) and any other savings last that much longer.
While Airbnb does not result in huge payouts, it is an extremely flexible way of making money. You can make your home available when you want it to be. You also do not have to be present at the time the guests are on the property. Aside from preparing and cleaning the rental rooms, your duties are minimal. These perks associated with self-employment can provide you with tremendous freedom.
Many people find themselves struggling with boredom in their retirement years. After a short amount of time spent celebrating freedom from work, you might discover you miss having something to keep you challenged and occupied. Turning your home into an Airbnb might provide you with the activity you have been missing. It will not have the kind of pressure you might have experienced in your previous employment, but it will take time and planning. Additionally, if you do want a challenge, you can task yourself with maximizing your profits and getting the best possible reviews.
Another potential side effect of retirement is an increased sense of isolation and loneliness. After years of being surrounded by co-workers of family members, retirement can be a difficult adjustment. You do not have to connect socially to everyone who rents from you, but you might be able to have some enjoyable conversations with your renters. For example, you may meet people who have traveled frequently and have interesting stories to share with you.