Airbnb rental: how much can I earn?

If you are thinking of renting out your home through Airbnb or other platforms, it is essential to understand the factors that affect your earnings. One of the most important is the location of the property. Homes in popular tourist areas, close to public transport or with easy access to local attractions will typically attract more guests and so generate more income. The home’s closeness to business districts can also affect demand, especially at weekends and during holidays, when business travellers look for somewhere to stay.

The size and condition of the property are also key factors. Larger homes that can fit more guests allow higher prices and income, especially with groups or families travelling together. Modern facilities and well-kept homes will also attract more guests. Guests often look for homes that offer comfort, a high standard of cleaning and visual appeal, so it is worth considering investing in upgrades and renovations that can add to the home’s value.

Seasonal variation is another important factor to take into account. In high season, such as summer and public holidays, demand typically rises, which can lead to higher prices. In low season, supply and demand can vary, and you may need to adjust your pricing to stay competitive. By analysing these factors, you can get a better idea of what you can expect to earn from renting out your home on Airbnb.

Seasonal variation in earnings

When you look at what you could earn from renting out your home on Airbnb, it is important to understand how the different seasons can affect your income. Seasons play a central role in the rental market, and earnings vary considerably between high and low season. That is why it pays to time your rentals for high season, as far as possible, to get the most out of them, because in the City of Copenhagen, as part of the 2019 legislation in this area, you could rent out for a maximum of 70 days a year through a platform (Airbnb, Booking.com and others). See this link for more information, under chapter 2, “renting out a permanent home” (udlejning af helårsbolig): https://www.retsinformation.dk/eli/lta/2019/368 (in Danish).

High season, which often falls in summer, can be a gold mine for hosts. Demand is generally high in this period, as many travellers look for short stays for their holidays. This can mean you can charge more per night, which adds considerably to your total earnings. Seasonal events, local festivals and holiday periods will affect where travellers choose to go, and you should take these into account when you plan your rentals.

Low season, by contrast, is marked by lower demand, which leads to lower prices and so lower earnings. In this period it can be harder to attract guests, and you may need to think about ways to optimise your rentals. This can include offering special discounts, improving the listing descriptions or adding extra facilities to make your offer more attractive.

By analysing earlier bookings and looking at local trends, you can adapt your rental strategy. Understanding how the season affects earnings can help you increase your income considerably by adjusting your pricing and promoting your home at the most favourable times.

The costs of renting out

When you are considering short-term rental of your home on platforms such as Airbnb, it is essential to understand the different costs that come with this source of income. A major cost is the fees the booking platform charges. Airbnb, for example, typically charges a service fee that can vary with the price of the home and the host’s account settings. These fees can typically be around 15% of the total booking amount. It is important to take these costs into account when you set the price of your home, as they directly affect the amount you receive once the booking is over.

On top of the platform’s fees, there can be further costs if you choose to use a rental agency. These agencies can help with marketing, check-in and check-out and cleaning. An agency can lighten the workload, but it often comes with its own commission, which can be as high as 20-30% of the rental income. It is crucial to judge whether the services an agency offers justify this cost, or whether it is better to manage the rental yourself.

Other costs include maintenance of the home, insurance and any taxes and charges that may come with the rental. It is also wise to allow for the cost of cleaning and updating the home to meet guests’ expectations. In the end, all these costs affect the net result you get from renting out, so it is important to make a thorough assessment of all the expenses you can expect.

Flexible rental solutions

When you are considering renting out your home on Airbnb, it is essential to understand the different flexible rental solutions that can maximise your earnings. One way to do this is to choose a rental agency with an affordable variable rate. That makes sure both parties have skin in the game, and it gives the agency even more reason to increase your earnings as much as possible. On the other hand, flat administration fees instead of variable rates can be seen as a cheaper and safer solution, where you pay a fixed price but with less earning potential.

It is also important to find a balance between costs and quality of service. Keeping a high standard in your home is crucial for attracting guests and getting positive reviews. For example, you could consider investing in basics such as high-quality bed linen, bathroom supplies and cleaning products, which can improve the guest experience. At the same time, you can find alternatives or work with local service providers to keep costs down without compromising on quality. This could be by making agreements with local cleaning companies that offer a discount for repeat business.

The right combination of flexible rental strategies and a focus on quality of service can therefore make renting out more profitable. By analysing your rental patterns and your guests’ preferences, you can adjust your approach and routines to get the best possible financial return. As your home becomes more popular through quality service and effective management, it will be easier to keep a significant share of the income you generate through the platforms.

Thinking of renting out your apartment?

We work with a variable rate of 17% of the rental income, with no hidden fees or unpleasant surprises. Our aim is to maximise your earnings while making sure the rental process is safe and trouble-free.

We help with everything from pricing and setting up your home on the relevant platforms to cleaning, key handover and ongoing communication with your guests. We also talk through with you how you want your rental to run, so the solution fits your needs.

Click here to read about our solutions.