While the Airbnb industry offers endless opportunities to make money regardless of your skills, many refrain from joining this profitable business because of the erroneous assumption that starting an Airbnb business is equivalent to buying an investment property and renting it out on a short-term basis. That's a lot of capital to start with! The truth of the matter is that benefiting from the vacation rental industry doesn't have to be limited to buying, owning, and managing an Airbnb property. Indeed, there are many different ways to do this that don't involve property ownership. In this article, we offer the top ten ideas on how to start an Airbnb business without owning a property.
These strategies fit different personalities and professional backgrounds, require various startup capital, and bring varying levels of revenue to provide a good fit for just about anyone looking to make money from Airbnb.
Regardless of how you get started, SummerOS can help you centralize all your short-term rental data and business operations into a single powerful platform for smarter management and faster growth. SummerOS is the all-in-one platform designed by property managers for vacation rental professionals to take control of their business.
How to start an Airbnb with no money
After its establishment in 2008, Airbnb turned into a global phenomenon that created unlimited opportunities for various stakeholders to benefit from the industry as we covered in our article on Airbnb statistics. In 2023, global Airbnb hosts made more than $57 billion. However, investing in a property to rent out on a short-term basis–which requires major financial resources–is not the only way to make money from vacation rentals. Last year, Airbnb travel created economic activity worth $85 billion in the U.S. alone, highlighting the strong potential for earnings and profit for many different players in addition to owners and hosts.
Another major segment within the industry, besides investors, are Airbnb property managers. The number of short-term rental management companies and professionals increased along with the number of Airbnb hosts and listings as many opt in for passive investments. And one of the best things about becoming a property manager, unlike being an investor, is that you can start an Airbnb business with no money and no property of your own.
The truth of the matter is that all talks and rumors about the Airbnb market getting oversaturated and the vacation rental industry having reached its full potential are rootless. After rapid growth in the first few years after the founding of the Airbnb platform, the industry is now enjoying more sustained, stable growth, just like any other mature industry. Meanwhile, it continues to create multiple opportunities for different individuals to benefit from this phenomenon even without money and without owning a property.
How to start an Airbnb without owning property
Now that you know about the multiple opportunities to obtain financial gains in the Airbnb industry, let's take a look at the ways to do that don't involve property ownership.
The top ten ideas on how to start an Airbnb business without owning a property include:
- Start an Arbitrage rental arbitrage business: Best for persons with some financial resources
- Become an Airbnb co-host: Best for those with zero budget
- Rent out spare bedrooms or portions of current home: Best for homeowners
- Benefit from Airbnb syndication: Best for individuals with real estate experience
- Host an Airbnb experience: Best for people with unique talents
- Become a property manager for other owners: Best for those with experience in hospitality
- Specialize as an Airbnb-focused real estate agent: Best for individuals with a real estate license
- Be an Airbnb revenue manager: Best for persons with background in finances
- Open an Airbnb cleaning services company: Best for people with experience in the cleaning industry
- Launch a career as a freelance Airbnb marketing expert: Best for professional marketers
Following is a detailed description of each of these ways to launch an Airbnb rental business without the unnecessary complications associated with real estate property ownership, focusing on what it entails, how to get started, what budget is required, what the pros and cons are, and who it is best for.
1. Start an Arbitrage rental arbitrage business: Best for persons with some financial resources
The most popular way to start an Airbnb business without owning a property is Airbnb arbitrage. This strategy mimics the process of investing in a short-term rental, without the need to finance the property and pay owner expenses, such as property taxes, homeowners' insurance, and others. This process entails leasing a long-term rental property from a landlord and renting it out on a short-term basis, so that's why it's also referred to as subleasing or subletting.
To get started and to be successful, you have to get reliable rental data and analytics software that can help you find a market and a property where short-term rental income significantly exceeds long-term rental rates. The profit that you earn is the difference between the money you get from guests and the money you pay to the landlord, so the larger the difference, the larger your profit. Moreover, it's important to find a landlord who's okay with such activities and make sure that the HOA, if present, does not prohibit them either. Check out local Airbnb regulations too as rental arbitrage is illegal in some U.S. markets.
In terms of startup costs, you need to factor in the cost to furnish the house for Airbnb unless it comes with readily available furniture as well as short-term rental license or permit fees, cleaning costs, and marketing expenses. To optimize performance and operations, you also need to get the best Airbnb management software available on the market.
The pros of practicing Airbnb arbitrage are:
- Significant income potential in markets with high average daily rates (ADR) and low rents
- Easy scalability across different markets and property types
- Getting into Airbnb investing without committing to a property
- Preparing for full-scale Airbnb investment (if that's your ultimate goal)
The cons of Airbnb rental arbitrage include:
- Limiting short-term rental regulations in some markets
- Potential problems with the landlord in case of excessive property damage
- Issues with the HOA
- Budget required to furnish the property and cover recurring expenses like utilities, Airbnb insurance, and repairs
All in all, short-term rental arbitrage is best for those who are considering a future as an Airbnb property investor but want to gain some experience before saving up enough for a down payment. It's also important to have some budget to prepare the property for listing and welcoming guests.
2. Become an Airbnb co-host: Best for those with zero budget
Another trending way to make money from Airbnb without investing in a property is via co-hosting. Airbnb is welcoming this idea, releasing their own co-hosting program in 2024.
An Airbnb co-host is someone who partners with the Airbnb host to manage a short-term rental property together. While the co-host might own a part of the rental, this is not a requirement. In addition, the responsibility distribution between the host and the co-host can take any form and shape, and this is reflected in the revenue-sharing model too.
To become an Airbnb co-host, you have to learn the basics of managing a property to offer real value to owners. You can resort to property management blogs, podcasts, YouTube videos, webinars, online courses, and other free and paid resources. Moreover, you need to locate an Airbnb investor in need of finding someone to manage their Airbnb. To do that, you can check out online real estate investing forums, talk to your network, or partner with local agents working with investors. When co-hosting through Airbnb's program, you'll have to meet their additional requirements.
With regards to financing, you don't really need anything to get started.
The pros of co-hosting Airbnb properties include:
- Zero initial investment
- Flexible responsibility arrangement
- Stream of incoming reflecting the work burden
- Quick scalability
- Easy transition into Airbnb investing or professional property management
The cons of being an Airbnb co-host include:
- Need to have in-depth knowledge of managing properties
- Lack of long-term capital appreciation
- Need to find and collaborate with a Airbnb host
Serving as an Airbnb co-host is a great opportunity for individuals with no initial capital who are willing to gain experience in the Airbnb business to move into investing in or professionally managing properties.
3. Rent out spare bedrooms or portions of current home: Best for homeowners
Another widely-used tactic to start an Airbnb without owning an investment property is to rent out space within your own home. In this sense, this strategy requires property ownership but not second home ownership.
Before you can list a room or rooms in your home on Airbnb and other short-term rental platforms, you have to confirm that this is allowed by your HOA rules and by local vacation rental regulations. You also need to find Airbnb occupancy rates and average daily rates for bedrooms in the local market to check that renting out spare bedrooms makes financial sense. You might have to give your space a slight upgrade to make it attractive for Airbnb guests, depending on its current condition and your target audience.
The initial expenses include interior design and furnishing (if needed), STR permit or license application fees, and marketing expenses.
The pros of listing spare spaces in your own home on Airbnb include:
- Easy management
- Close control over your business
- Little to no initial capital required
- Easy entry and exit
The cons of renting spare rooms in your home on Airbnb are:
- Need to meet the Airbnb space minimum requirements
- Sharing your personal space with different people
- Necessity to obtain a short-term rental insurance
- Potential damage to your primary home
Generally speaking, renting out bedrooms on Airbnb is a good fit for homeowners with extra space in their home who don't mind living with different guests and who'd like to get a feel of the vacation rental business.
4. Benefit from Airbnb syndication: Best for individuals with real estate experience
A less well-known way to start an Airbnb business without owning an entire property is Airbnb syndication, a variation of the real estate syndication strategy. This refers to a number of investors pulling together their funds (referred to as investors) to buy a common investment property, where the process is managed by a syndicator or a sponsor. The investors play a passive role, enjoying passive income from the investment, while the sponsor does all the legwork associated with buying and managing the short-term rental property. Typically, the sponsor owns a very small share of the property, starting from 5%, making syndication a way to get into Airbnb without owning a property.
With respect to finances, short-term rental property syndication requires more capital than other strategies to get into Airbnb as you need to cover at least 5% of the property price.
The pros of getting into Airbnb syndication are:
- Great option to learn about investing in and managing Airbnb rental properties
- Some potential for capital appreciation in the long term
- Relatively low initial capital requirement
- Scalability
The cons of syndicating Airbnb properties include:
- Need for some property ownership (5-10%)
- Minimum long-term appreciation
- Carrying a lot of responsibility for other investors' capital
- Active and dynamic engagement in all aspects of owning and managing an Airbnb property
The advantages and disadvantages of Airbnb syndication make it a viable option for those who already have some experience in the real estate industry in addition to enough capital equivalent to 5-10% of a property sale price.
A successful Airbnb syndication entails locating the top short-term rental markets and finding Airbnb properties for sale with a strong potential. Unless, as the sponsor, you have a background in real estate, it's crucial to get access to reliable Airbnb data and analytics tools, like Summer Forecast. With its institutional-level data and powerful forecasting tools, Summer Forecast is the only platform that you need to find a profitable Airbnb opportunity or build an entire high-performing Airbnb portfolio.
Your Airbnb revenue forecast: Brighter days ahead
Learn more
5. Host an Airbnb Experience: Best for people with unique talents
It is a common misconception that you have to list a property on Airbnb in order to host an experience. Indeed, you can host an Airbnb Experience without having a listing, which means also without owning a property at all.
To get started, an Airbnb Experiences Host needs to provide information about themselves and what makes them the best person to host the experience, the included activities and the location, and the materials to be used. Moreover, an Experience needs to meet three quality standards including expertise, insider access, and connection. This means that an Experience Host has to have some unique talent or knowledge that they share with guests during the activity.
The budget required to become an Airbnb Experiences Host depends on the type of activity and the necessary equipment, so it can range from a few dollars to thousands of dollars.
The pros of hosting an Airbnb experience include:
- Opportunity to use your talents and interests to make money
- Ability to combine with another job
- Flexible budget
The cons of being an Airbnb experience host comprise:
- Special knowledge or expertise required
- Potentially significant level of risk associated with the Experience (depending on the activity)
- Liability insurance needed in some cases
- Potentially large initial budget
- Active engagement
- Potential seasonality
In sum, hosting an Airbnb Experience could be the right fit for individuals with interesting talents, expertise, and skills to make money from Airbnb without buying an investment property.
6. Become a property manager for other owners: Best for those with experience in hospitality
Next on our list of the best ways to start an Airbnb business without owning a property is becoming a short-term rental property manager. This entails professionally managing vacation rentals on behalf of their owners in exchange for compensation, often corresponding to the amount of rental income generated each month. You can choose between being a half-service property manager (focusing on the most time-consuming and tedious tasks) or a full-service property manager (providing end-to-end services).
To launch an Airbnb management business, first and foremost, you have to check whether your area requires you to hold a real estate license, and if that's the case, you need to obtain one. Meanwhile, you also need to learn the basics of the hospitality industry, the nature of the local STR market, and local Airbnb rules and regulations. Furthermore, you have to decide on your business model, register a business entity, vet and hire a team, get any necessary equipment, set up an Airbnb property management fee structure, and start marketing your business using both traditional and creative marketing ideas for property management companies.
How much money you need in order to get into Airbnb management depends on whether you need a license, what services you plan to offer, and whether you have a physical office or work from home.
The pros of being a professional Airbnb manager include:
- Increasing number of Airbnb listings, constantly creating new potential customers
- Commission-based earning model
- Flexible business model
- Scalability
- Opportunity to streamline and automate operations with the best Airbnb software for property managers
The cons of starting an Airbnb management company are:
- Never-ending competition from a growing number of short-term rental property managers
- Worsening Airbnb rules in some of the top markets
- Seasonality in revenue
In conclusion, starting an Airbnb management business is the best option for individuals with a dynamic personality, exceptional personal skills, managerial abilities, and some experience in hospitality. But even if you've never worked in hospitality before, you can still succeed as a vacation rental property manager as long as you get access to the best tools.
SummerOS is your go-to platform designed by property managers for property managers to get their business started on the right footing and grow it in an effortless manner. The platform empowers you to generate leads, grow your portfolio, retain clients, optimize property performance, and streamline every aspect of your Airbnb management operations.
7. Specialize as an Airbnb-focused real estate agent: Best for individuals with a real estate license
One more effective strategy to earn income from the short-term rental industry without the need to buy a property is to be a real estate agent or broker who works with Airbnb investors. As an Airbnb investor-friendly agent, you would help investors buy and sell vacation rental properties. This means that in addition to knowing the ins and outs of real estate transactions, you also have to have a certain level of expertise in the local Airbnb market.
To get started with this idea, needless to say, you have to hold an active real estate license, which takes some time and money. You also need to learn about the local short-term rental market, Airbnb rules, preferred property types, most sought-after amenities, typical guest personas, average Airbnb performance metrics, and everything else that will help your clients make profitable investment decisions. That's why this option is probably the most demanding strategy in our list.
In terms of capital investment, you need a few thousand dollars to enroll in a real estate course and pass the exam and to market yourself. As a beginner, you might consider working with a brokerage to help you get your first clients and establish your reputation in the area, but it's important to choose one that helps vacation rental investors.
The pros of being an Airbnb-property real estate agent are:
- Commission-based income driven by sales volume
- Less seasonality of deals than with home purchases and sales
- Less picky clients (investors are ready to move forward with a deal as long as the numbers make sense)
- Fewer financing challenges for clients (as most investors use already established financing channels)
The cons of becoming an Airbnb investor-friendly agent comprise:
- Need to hold a valid real estate license in the local market
- Not a feasible option in unpopular Airbnb markets
- Need for analytical skills
- Strong competition from other agents
Weighing the pros and cons of being a real estate agent who buys or sells Airbnb properties is the ideal route for those who already hold a real estate license and who have some experience in the real estate business. Unfortunately., it's not a good option for those who are just getting started in real estate.
8. Be an Airbnb revenue manager: Best for persons with background in finances
Another, more unique idea to launch yourself into the Airbnb industry without the constrictions brought by property ownership is becoming an Airbnb revenue manager. Some owners choose to hire an expert to manage the financial operations of their vacation rental business. In brief, an Airbnb revenue manager is responsible for setting up an Airbnb pricing strategy that optimizes the monthly revenue for the owner. Most revenue managers are paid a fixed fee, but in some cases their pay might be a percentage of the monthly rental income.
To start out with this approach, it's recommended to have a background in finance in addition to learning about the financial side of the Airbnb industry. Things like average daily rates, Airbnb occupancy rate, dynamic pricing, revenue, rental expenses, and cash flow must become second nature. Since Airbnb revenue managers are not very popular in the U.S., you need to put extra effort into marketing your services. For these purposes, you can partner with local real estate agents and property managers, establish your presence on online real estate investing forums, use LinkedIn, and create accounts on platforms like Upwork and Fiverr.
If you already have expertise in finances, the only money you'll need to spend is to get an Airbnb data and analytics tools like Summer Forecast.
The pros of becoming an Airbnb revenue manager include:
- Not too much competition
- No need for active engagement in the management of properties or dealing with guests
- Endless opportunities to grow
- Options to expand your business services later on
The cons of managing revenue for others' Airbnb properties are:
- Somewhat limited demand from owners
- Need for background in finance
- Very complex job responsibilities
To sum up, building a career as an Airbnb revenue manager could really work out for someone who already knows finances and has strong data skills.
9. Open an Airbnb cleaning services company: Best for people with experience in the cleaning industry
Yet another way to benefit from the endless opportunities within the vacation rental space is to offer professional Airbnb cleaning services. The majority of Airbnb hosts and even many property managers choose to hire professionals to clean, launder, and restock their rentals between stays to save time and effort.
The nature of the job is quite straightforward: You clean, change linen, clean linen, and sometimes restock guest supplies as soon as guests leave to prepare the property for the next stay. Usually no specific knowledge is needed. The key is to stay organized and to provide high-quality services. After the pandemic, the requirements for top-notch cleanliness have significantly tightened among travelers.
Getting started with this idea requires acquiring some equipment and cleaning materials, but it is still much cheaper than putting a down payment on a house.
The pros of providing professional Airbnb cleaning services are:
- No specific education needed
- Flexible business model (part-time or full-time team)
- Easy scalability
The cons of starting an Airbnb cleaning services business comprise:
- Need to build and manage a reliable cleaning team
- Initial capital to purchase necessary cleaning equipment and materials
- Need to provide consistent, professional-level hygiene
Generally speaking, starting an Airbnb cleaning business is the right fit for individuals with some previous experience in the cleaning industry who have what it takes to stay organized and manage a team on the ground.
10. Launch a career as a freelance Airbnb marketing expert: Best for professional marketers
The final strategy on our list is to become an Airbnb marketer. Creating Airbnb SEO-optimized listings and distributing listings across different booking channels and other digital sources is at the core of success in the vacation rental business. You might also consider adding professional photography to your services.
Many hosts and even professional Airbnb managers struggle with this aspect of managing Airbnbs and decide to outsource it to marketing experts specializing in the STR industry. So, basically, you'll be writing titles and descriptions for listings on Airbnb, Vrbo, Booking.com, and other short-term rental websites and devising tactics to bring more audience to these listings using Google search, social media, and paid ads, depending on the preferences and the budget of your customers.
To turn into an Airbnb marketing freelancer, you need to have a strong understanding of digital marketing in general and the Airbnb and other vacation rental platform algorithms in specific. You have to be familiar with different channels including but not limited to Google SEO, email marketing, Facebook, Instagram, YouTube, TikTok, LinkedIn, and others. In some cases, Google ads and social media paid ads are also integrated in a comprehensive vacation rental marketing strategy.
The pros of being an Airbnb marketing freelancer include:
- Flexible working schedule
- No in-person management of short-term rentals
- Possibility to combine with any other jobs
- Good demand
The cons of marketing Airbnb properties on a freelance basis are:
- Insecure stream of income
- Less popular services than property management
- Need to stay sharp on the ever-changing Airbnb SEO requirements
All things considered, professionally building Airbnb marketing strategies could be a great opportunity for people with marketing skills to get into the exciting world of vacation rentals.
Bottom line
These are the top ten ways to start an Airbnb business without owning an investment property. The diverse requirements, varying budget needs, and different pros and cons ensure that everyone who's interested in getting into short-term rentals can find the best strategy for themselves. If you'd enjoy managing properties without owning one, you can try Airbnb arbitrage, co-hosting, or professional property management. In case you have a financial or marketing background, you can become an Airbnb revenue manager or marketing expert.
If you plan to become an Airbnb property manager, check out SummerOS. The game-changer in the STR management business has been waiting for you.
From lead generation to performance tracking, our all-in-one platform takes the complexity and guesswork out of managing Airbnbs and turns them into unlimited growth. With intuitive insights, automated alerts, and empowering tools to streamline your entire operations, SummerOS helps you manage smarter and grow faster while maximizing your revenue.
