The Pros and Cons of Being an Airbnb Host

Updated on May 28, 2020
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Always interested in new ways to make money, Paul and his wife have been hosting Airbnb guests since 2015. He currently lives in Florida.

Being an Airbnb host has its ups and downs, read on for my pros and cons list...
Being an Airbnb host has its ups and downs, read on for my pros and cons list... | Source

My wife and I have been Airbnb hosts since 2015. We built an addition in order to offer guests their own separate space to stay, previously we offered a private room in our house with its own bathroom.

What Is Airbnb?

If you are not already familiar with the company, Airbnb is effectively an online broker that facilitates hospitality experiences. They basically enable people seeking to rent short-term lodging to connect with hosts. Airbnb doesn't actually own any property itself.

What's It Like to Be a Host?

Hosting on a small scale with Airbnb promises the host an easy way to make a little extra income, and on a larger scale there is the potential to make some very large amounts of money. It's estimated that you can earn two or three times the amount that you'd earn just renting out a property long term by doing short-term lets with Airbnb.

However, there are also downsides to hosting, such as dealing with demanding or unhappy guests, cleaning restrooms, and making repairs.

Below are my pros and cons of Airbnb hosting.

8 Pros of Airbnb Hosting

  1. The extra money: This is the real motivator for hosts. You can use the extra income to live somewhere that you might not normally be able to afford, or build an addition and finance it with your Airbnb income (like my wife and I are doing). You may even be able to switch to part-time work, or give up other work altogether if your Airbnb income is great enough, and just focus on the short-term rentals.
  2. The flexibility: If you have friends or relatives coming over to stay, you can block off the calendar and save the room or property for them.
  3. You meet interesting people: We've had guests from all over the world staying with us. Many of them have an interesting tale or two to tell.
  4. You're insured: Airbnb insures your property against damage from guests, which gives you a safety net if something does go horribly wrong.
  5. Guests are reviewed: Unlike a hotel where the guests are usually complete strangers, you can actually read reviews of your guests and find out a bit about them before you let them stay. After a while, you will also get regular guests coming to stay.
  6. Airbnb does a lot of the work: Airbnb effectively gives you a low-cost way of advertising and getting bookings via their website; plus a ready built system for handling the bookings and payment, making the process much easier than doing it independently.
  7. You get a jump on a growing market: The short-term rental market is likely to keep growing, according to current trends and the opinions of most experts, and the earlier you join the market, the quicker you will become established.
  8. Guests don't use the room much: In my experience, most guests don't actually use their rooms much; they mainly want somewhere to sleep and put their stuff. Most guests are on vacation, visiting a friend or relative, or attending a job interview, college seminar, or some sort of event. They spend most of their time out and about.

6 Cons of Airbnb Hosting

  1. Income is erratic: Unlike renting a property to a long-term tenant where you know how much money you've got coming in each month, Airbnb income can be more erratic. You can have a run where you have a lot of bookings and then a dry period; it's never easy to predict. Bookings also tend to be seasonal to some degree.
  2. You do a lot of cleanup: Unless you can afford to pay someone else to do it, you will find yourself doing a lot of laundry, vacuuming, dusting, and yes, cleaning up the restroom after guests.
  3. It can be disruptive and time-consuming: You need to monitor what's happening online so that you can respond to inquiries from guests. You may have to be around in person to check-in guests, or clean up quickly to prepare for the next person's stay.
  4. Some guests will cause problems: Although most people are polite and responsible, you will sometimes encounter some anti-social behavior, or damage to the room. We've had a few guests who have come home drunk, or broken a lampshade, been excessively loud. Nothing major, but it still has to be dealt with.
  5. You have to change your behavior at home: If the guests are staying in a room in your home, then you have to be disciplined about keeping all the public areas tidy and clean, and watching your own behavior: There's no wandering around in your underwear, or listening to loud music.
  6. You will get some bad reviews: No matter how hard that you try, my experience is that you will always encounter some unhappy guests who give you less than perfect reviews. It shouldn't be a problem, however, provided that you are doing your best and the reviews that you get are overwhelmingly positive. You can't please everyone, some people maybe aren't a good fit for your property, or even Airbnb.

Joe Gebbia (right), one of the three co-founders of Airbnb. To raise the start-up money necessary to launch Airbnb, Gebbia and the team createded cereal boxes, “Obama O’s” and “Cap’n McCains,” based on the 2008 presidential candidates.
Joe Gebbia (right), one of the three co-founders of Airbnb. To raise the start-up money necessary to launch Airbnb, Gebbia and the team createded cereal boxes, “Obama O’s” and “Cap’n McCains,” based on the 2008 presidential candidates. | Source

History and Facts About Airbnb

Airbnb was founded by Brian Chesky and Joe Gebbia who, unable to afford the rent on their San Francisco loft apartment, came up with the idea of putting an air mattress in their living room and turning it into a bed and breakfast, hence the name: "Airbnb" (or Airbedandbreakfast as it was first called).

Initially, the plan was to just make a little extra income, but buoyed by their success and joined by third co-founder, Nathan Blecharczyk, they used the concept to launch an online company in 2008.

In 2009 the company name was shortened to Rather than just air beds and shared spaces, the site now included a wider range of properties including entire homes and apartments, as well as private rooms. More exotic spaces such as castles, manors, tree houses, igloos, tipis, and private islands were also listed.

Over the next couple of years, the company continued to expand rapidly and attract investment, including raising $7.2 million in financing from Greylock Partners. In 2011, Airbnb took over Accoleo, a German competitor, and opened its first international Airbnb office in Hamburg. Shortly after it opened another office in London. Other international offices were opened in the period after as the company sought to increase its international market.

In 2015, Airbnb was one of the first U.S. companies to enter the hospitality market in Cuba, after the Obama administration relaxed previous restrictions on U.S. businesses operating in the northern Caribbean country.

Between 2015 to 2016, Airbnb's revenue increased by more than 80% and for the first time in the second half of 2016, the company became profitable.

Airbnb Facts

  • Airbnb has more than 4 million lodging listings in 65,000 cities and 191 countries.
  • The company has enabled over 260 million check-ins and operates 14 offices globally.
  • The most active listings are in London, New York, Paris, Rio de Janeiro, Barcelona, Rome, Los Angeles, Copenhagen, Sydney, and Amsterdam.
  • Among the lodgings listed are 1,400 tree houses.
  • The busiest ever night for the company was New Year's Eve 2017 when over 3 million people booked a place to stay via Airbnb.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2018 Paul Goodman


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    • Joanna14 profile image

      Christine Hulme 

      5 months ago from SE Kent, England

      We've been Airbnb hosts for the last 4 years and enjoy it. We find it very important to chat with them when they first arrive and as we show them around, to allay fears and build trust together, as they share our home. Afterwards you can see that they are much more relaxed. Thanks for sharing.

    • GetitScene profile image

      Dale Anderson 

      10 months ago from The High Seas

      We are ABNB superhosts and its been a mostly good experience. Our guests sneak in and leave quietly and some we have never even met! They stay in their rooms and, despite us setting up a play area for them with a big, flatscreen tv and other good things, they are really like ghosts.

    • Lauren Flauding profile image

      Lauren Flauding 

      2 years ago from Sahuarita, AZ

      This is very insightful. I’ve thought about using Airbnb, both as a traveler and a host, and now I’ve got some constructive things to consider.


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