One of the key issues facing new traders is being under capitalised. A small trading portfolio can be detrimental for two reasons. One, brokerage fees will churn your account. Two, you are limited in the way you can position size. So in other words a small capital base puts you at a disadvantage when you are starting off.
Building up a big enough trading portfolio can be tricky when you have bills and other outgoings chewing up your wage each week. Over the years I have read tons of books on wealth creation and studies on the wealthy, and I discovered they all seem to have one thing in common. That is, they had multiple streams of income. With those extra streams of income, they were able to invest and then create a passive income.
This leads me to the focus of this article – creating an additional stream of income using a platform such as Airbnb, to assist in building up your trading capital. It is something I fell into by chance a couple of years ago and something that has changed my life completely.
I had an underperforming property that I was close to selling. A tenant had just moved out and I asked myself why don’t I give this Airbnb thing a try? Over the next week or so I furnished it (very cheaply mind you) and listed it on Airbnb, without too many expectations. And then I kid you not, within an hour of listing I had my first booking. It was both scary and exciting at the same time!
But the bookings didn’t stop, they kept on coming thick and fast, and still are to this day. I was making 3-4 times what I was renting it out the “normal way”. With all this momentum I was able to buy several more properties and set them up as Airbnb’s and have now created a business for myself. The supplement income is funnelled to my trading account, as trading is my true passion.
This is not about me though, I am only showing you what is possible. If you own property, maybe it is something you could consider. You can even rent out a single bedroom if you want and make additional income that way. But here is a little secret – you can actually make money on Airbnb without even owning property!
How can I make money on Airbnb without owning property?
There is a lot of different ways to make money on Airbnb without owning property. I’m going to give you some ideas that you may not have even thought of. It could really give your trading account a big boost.
One popular method is renting a furnished house. This idea will appeal if you want to run your own Airbnb but lack the funds to do so. Now you will need to gain approval from your landlord and look into your local laws and regulations, but subletting a property for the purpose of Airbnb is a great method.
Another way is to do Airbnb Experiences. This is a new feature that has created a huge opportunity to make extra money. You can host walking tours of your city, pub crawls, art classes, cooking classes. You name it.
Managing properties is yet another way. Time sensitive Airbnb hosts often outsource the management of their properties, which is where you can come in.
Perhaps you could become an Airbnb cleaner? Sure, it’s not the most glamorous work, but cleaners can make at least $40+ an hour. If you have the time, this could really build up your trading capital nicely.
To sum up, we have gone over a few ways to make money on Airbnb without owning property and shown you how to capitalise on your current investment properties by turning them into Airbnb’s. If you have the time, it could provide you with that additional stream if income and get your closer to your trading goals much faster.
About Author – Adam Talbot is a private trader, property investor and small business owner. He is the creator of BnbDuck.com, a website which provides Airbnb hosts with a wealth of information to improve their business in the form of guides, books and products.