Listing your property on Airbnb has become one of the ways to earn a living nowadays. Airbnb disrupted the hospitality space and paved the way for homeowners to become part of the industry. Today, there are more than four million hosts on Airbnb who, on average, earn about $9,600 yearly.
Entrepreneur Chi Ta said that many people worldwide now rent their properties through Airbnb. “If you have a property, whether you owned it or rented it, you can list it on Airbnb. Your property can get bookings from travelers or tourists and earn a profit. You can even transform it into a profitable business,” Chi said.
Chi owns multiple properties he listed on Airbnb and earns millions of dollars annually.
Chi’s Airbnb Journey
Chi started doing Airbnb after closing a business that offers government loan programs. He sold reverse mortgages to people. Reverse mortgages are government loan programs for people 65 years old and above, which assure them that their homes will not be foreclosed. “I made millions of dollars in revenue selling these government loan programs, but everything changed when the US Federal Housing Administration (FHA) revised the policy. They added a credit qualification, which disqualified up to 80% of his clients,” he said.
He lost everything he owned, trying to finance a massive marketing campaign to get his business back on track. Unfortunately, it did not work. “Everything I own is gone, and I must pay the rent for the place I lived in. I called my dad and mom and told them I wanted to spend time with them,” Chi said.
While spending a few weeks with his parents, Chi discovered he could use the place he was renting on Airbnb. “Honestly, at that point, I do not know what I am doing. I am not even sure if that is legal. Nevertheless, I took the chance and listed my property on Airbnb for two weeks while I spent time with my parents,” he said.
Chi said it was a great move because he earned $2,500 in those two weeks. “The property made more money than I could nearly pay my rent and utilities. The craziest part is I did not know anything about the platform,” he narrated. He used credit cards to rent a bunch of properties and furnish them. At the end of the month, he made a significant profit.
Chi was excited about turning this discovery into a business. He figured out how to finance the entire operation with no money. Chi used credit cards to rent a bunch of properties and furnish them. Then, he listed those properties on Airbnb.
Chi rented two properties in San Francisco in the first year, generating $5,000 in monthly revenue. In the second year, those properties made close to $10,000 monthly profit per property.
“In year two of my Airbnb business, I earned $2.9 million per property and generated a total profit of about $6 million. In the next nine months, I ended up having up to 30 homes, with yearly earnings of $2.4 million,” Chi said.
Today, Chi buys properties monthly worth $2 million to $5 million and puts mortgages on them. “My Airbnb income pays off all the mortgages, and I make up to $10,000 a unit,” he added.
Secrets Of A Successful Airbnb Host
‘Listing your property on Airbnb is the first step to doing a profitable business. You also need to put on the hustle to become successful,” Chi said.
Chi shared some of the tips on how to become a successful Airbnb host:
- Understand the business
Chi said when you understand how to do this business, you can figure out how much these properties are making before you even list them. “You figure out what you make before you commit. Then, the rest is being an incredible operator. You will research how to outcompete other hosts in your area,” he added.
“Positioning is the key. Getting the algorithm to recognize your listing as a priority,” Chi explained. Chi had done many AB tests to know what works and what doesn’t. He also learned how to get the Airbnb algorithm to push their listing up on the search.
- Appear more
Chi said that the next step once you are well-positioned on the Airbnb search is to appear more. “For example, if your property is in New York City, if your property appears first out of the tens of thousands of listings in New York, then people have a chance to book your property,” he said. On the other hand, Chi explained if the property appears on page 100 of the search result pages, nobody will see it.
- Figure out the triggers
Chi said it is also essential to figure out what triggers Airbnb customers and how to make them pay more. “If you appear more, you will get booked more, and you are also charging more. YourYour listing should show up more, so your occupancy rate will be higher, and your nightly rate will also be higher than your competition,” he continued.
Suppose you want to learn how to become a successful Airbnb host. Chi is ready to share this knowledge with others through his learning sessions. He can teach you how to earn from Airbnb. “I teach you how to find the landlords that would allow you to use their properties for Airbnb. How to find a profitable property and eliminate any risk?” he said.