According to Airbnb, the average earnings for people renting out rooms in New York City is around $21,000 a year. That’s a significant amount of extra income for about 10,000 hosts!
Imagine what you could do with an additional $21,000 each year. It sounds great, right? But what would you be willing to give up to earn that money? Would you sacrifice some privacy, do some extra laundry, or maybe clean a bit more often?
The income you can make from renting out a room depends heavily on where you’re located. Is there a college or a big company nearby? How close are you to the city or public transportation? If you’re in a remote area with few employers around, finding a tenant might be more challenging.
However, don’t lose hope. You can always attract tourists if there’s something appealing nearby, like a park, a tourist attraction, or if you’re conveniently located along a travel route. You can market your place as a good stopover spot.
Start by checking local ads. Places like your supermarket, community hall, or online platforms like Craigslist are good starting points. Compare what you’re offering to what’s already out there. Check the “wanted” section to see what people need and how much they’re willing to pay. If you have a quality space, there’s definitely a market for it.
I rent out three bedrooms in my flat to different people. My rates are slightly higher than the local average, but I include utilities like electricity and broadband, so there are no surprises with extra bills. Plus, I’m located right in the city center, which people find very convenient and worth the extra cost.
The same logic applies to short-term rentals. If you offer good value, you can set your prices accordingly.
First, decide whether you want to rent short or long-term. Each option has its pros and cons. With long-term rentals, you can expect consistent income every month, but you’ll also have to share your kitchen and bathroom, and sometimes deal with noisy or messy roommates.
On the other hand, short-term rentals might bring in more money per night, but you’ll need to provide linens, clean up after each guest, and repeatedly explain the house rules and local attractions.
Ultimately, how much you can earn depends on how well you market your place. Personally, I charge about $600 per room per month, which sums up to $7,200 per year. I have tried short-term rentals while I was on vacation, but in my current city, it’s not as feasible. I might consider it again if I move to a more desirable location.