What is Airbnb and how can you make money from renting? Airbnb is an online platform that arranges short-term rentals of rooms, flats, houses or beds. Anyone with spare space they can offer to the whole world on Airbnb can earn money from renting it out.
Table of contents
What is Airbnb?
Airbnb was founded in 2008 around the idea of the sharing economy, as an alternative to staying in hotels and hostels. In its early days, hosts most often offered an unused room in their flat and shared local tips and experiences with their guests. Today, Airbnb is widespread around the world and less personal. Guests and hosts often never even meet. For some guests this can be an advantage, for others a disadvantage.
However, a new business opportunity opened up for hosts. Many buy flats specifically to rent them out, and Airbnb has become their source of income. Thanks to its simplicity and a rapid drop in the price per night, Airbnb is now one of the main players in the short-term accommodation market.
How does Airbnb work?
On Airbnb, both sides must first register. Both the guest and the host create a personal profile. The host’s profile also shows which room, flat or house they offer, displays reviews of the accommodation from previous guests and lets you contact the host. Guests are rated too, so the host knows who is coming to stay and what to expect.
Once the host has listed their accommodation, all they have to do is wait for specific booking requests. They can then choose whether or not to approve them.
How to make money from renting
Renting out a property through Airbnb is not difficult, but how do you make sure you actually earn money from it? If you compare the monthly price of a long-term flat rental with the amount you can earn in a month by renting the flat through Airbnb, you will find that Airbnb can be up to three times more profitable. Bear in mind, however, that Airbnb also comes with noticeably higher costs.
Some people have even started a business through Airbnb, renting large and small flats cheaply and trying to fill them as much as possible with short-term stays. Some accounts suggest it is possible to earn four times the cost of the rent. BUT. You need to pay considerable attention to logistics and keep the property in good condition. Many landlords do not want these Airbnb entrepreneurs in their buildings and explicitly forbid it in their tenancy agreements.
When is running an Airbnb most profitable?
Airbnb is a profitable source of income, but it is not passive income, as it requires a lot of work. For example, if you rent out a whole flat, it is important that you own it. Otherwise, you need to obtain permission from the flat’s owner. Renting through Airbnb can end up taking a lot of your time and energy. There is constant communication with guests, cleaning the flat after every stay and various repairs.
The least demanding situation, both legally and in terms of work, is when you rent out only a bed or a room in the flat where you live yourself. In that case, you have everything under control, and communication and cleaning up after guests become simpler. What is more, you do not need the property owner’s permission, even if you live in rented accommodation.
Airbnb as a business
Airbnb can be more than just extra income. Many entrepreneurs buy up flats in the centres of large cities for business purposes. We have already written about investing in property and whether it pays off. Short-term rental combined with additional services, such as cleaning, is in itself classed as a business activity. In addition, if your rental profits exceed 1,000,000 CZK (about 46,000 USD) a year, you must become a VAT payer. The host must, of course, pay taxes and register with the local authority to pay recreational fees and accommodation fees.
How to make money renting through Airbnb
As with long-term rentals, one of the most important factors in determining the price is location. Flats and houses in city centres or near interesting tourist attractions are best suited to Airbnb. Other deciding factors are accessibility, furnishings and equipment and services.
If you want to raise the price of your rental, try offering extra services to gain a competitive advantage. Breakfast included, a local guide or a parking space can attract many guests.
How to cut costs
Compared with long-term renting, the differences are higher running costs and greater time demands. You can try to reduce both in several ways.
Save time and money
- Prepare a standard guest manual. If you write down answers to the most frequent questions, directions to the accommodation or the house rules for guests, you will save a lot of time on communication.
- Keep the key to the accommodation in a key safe with a code. That way, you will not have to arrange an exact arrival time, and both you and your guests will have more freedom.
- Furnish the flat with durable furniture. Frequent guest turnover puts a heavy strain on the flat and its furnishings, so try to avoid frequent repairs.
- Buy value packs of products. If you are serious about renting, do not be afraid to stock up on soap, towels and other supplies in large, bulk-discount packs.
How to be a successful Airbnb host
What should you watch out for if you want to succeed on Airbnb and make money from renting? We have already said that location is usually the deciding factor in whether someone chooses your accommodation. Once we are offering the accommodation, we can no longer influence its location. But there are other factors that decide whether guests choose you.
A winning profile
Above all, it is important to have a properly completed profile with all the details of what your accommodation offers. Is there wifi, a washing machine, a fridge, towels or, for example, a bicycle? Do not forget to mention it. The accommodation must be photographed nicely. But do not photograph anything that will not actually be there. Disappointed guests would certainly mention it in their review.
Communicating with guests
Always reply to guests as quickly as possible and try to be helpful. Competition on Airbnb is usually very high, so the host’s attitude matters too. Do not hesitate to recommend interesting places nearby.
Price
Set an appropriate price. Look at what similar accommodation in your area charges. But do not forget to factor in furnishings, services and any repairs. Airbnb itself charges 3% of the rental price as its service fee. Once you have a few good reviews, you can raise the price.
PS. You can also rent houses for Airbnb purposes.
What to watch out for
A common problem associated with Airbnb is complaints from neighbours. Disturbing the night-time peace or mess around the flat can make renting difficult for you. Try to prevent this by setting rules for your guests.
Another problem short-term rentals currently face is upcoming regulation by cities. Before you acquire a flat to rent out, find out whether your city is planning restrictions that could affect Airbnb.
And above all, do not forget about complying with the law. Short-term rentals through Airbnb are often regulated, and the rules depend on where you live. Typical obligations include registering a business, paying taxes and VAT where applicable, registering for local fees or obtaining the property owner’s permission (in the Czech Republic: a trade licence, taxes and VAT, local fee registration and the owner’s consent). Check with your local authority or a tax adviser, as these are all things that are not worth underestimating.
USD amounts are approximate, converted at the Czech National Bank rate of 21.75 CZK per USD on 9 October 2026.
