What is Airbnb Earn money through Airbnb and how does it work?

Do you have an apartment suitable for rent and have you thought about starting to rent it via Airbnb? Why not?! Or are you even thinking about buying an apartment on a mortgage, for example, with the proviso that you will rent it through Airbnb? Be careful, but you must not be seduced by the vision of easy earnings. Being a host means a lot of work and effort, and you have to comply with all legal regulations. So how do you rent an apartment to really make money and what are the basic rules for renting an apartment through Airbnb?

What is Airbnb and how does it work?

Airbnb is an internet service that offers accommodation offers from all over the world. Founded in California, the service has attracted millions of hosts and guests in just a few years. Through Airbnb, hosts can offer their apartments for short-term and long-term rent, often offering a much cheaper alternative to classic hotels and guesthouses.

The idea of ​​Airbnb is also to get to know the place and the environment more personally. In some cases, it is possible to share the premises with the host or other tourists from all over the world and get to know the destination in its more natural form than in a hotel.

The hosts have taken advantage of this platform, and today the trend has spread so much that there is talk of a separate Airbnb chapter in real estate investing .

Rules and requirements for Airbnb rental in the Czech Republic

Renting an apartment via Airbnb has its own rules. Taking pictures of an apartment, setting a price and posting it on the site is definitely not everything.

Airbnb conditions are set differently in different countries and cities, so it is always necessary to follow the regulations in that country. The Czech Republic has clear rules for Airbnb, such as the permission of the property owner, the payment of taxes and the payment of social and health insurance from rental earnings.

Permission of the property owner

If you have a privately owned apartment, you have a great advantage and do not need a permit. However, if the apartment is in cooperative ownership, you need the permission of the cooperative. In this case, complications can occur if the team does not issue a permit. However, this may not mean the end of renting an apartment.

It is not possible to rent the whole apartment without the permission of the cooperative, but part of it, such as a room, can. In this case, you must have a registered permanent residence here and the cooperative cannot prevent you from hiring in any way.

The apartment should also meet all safety and hygiene requirements.

Business license and trade

Is a trade license required to operate accommodation via Airbnb? In this case, you must first determine under what law you actually rent the apartment. The Income Tax Act applies to long-term leases without additional services.

However, the Airbnb service mainly concerns short-term leases associated with additional services in the form of cleaning and the like, in which case it is already a business activity in the provision of accommodation services. The host can thus carry out this activity through a trade or be an entrepreneur without a trade and pay flat fees.

How to get paid by Airbnb

If you are renting an apartment or room in the Czech Republic, it is better to set up a Czech bank account (CZK) for payment . The money passes through Česká spořitelna, so it arrives in your Czech bank account without any additional fee. According to the experience of Czech landlords, you will usually have them on your account within 3-5 working days of the request.

Sending a payout to PayPal is not recommended, mainly due to the fees that will apply if you continue to want to transfer money from PayPal. Airbnb itself is again free of charge for paying to PayPal. The disadvantage of PayPal is then the exchange rate difference EUR – CZK, on ​​which you lose another unit percentage.

Taxes

The host, as the accommodation provider, must pay taxes. This is income from independent activities (15% tax) with the fact that an entrepreneur without a trade license should write off a flat rate of 40% and a self-employed person in the amount of 60%.

If income from accommodation services exceeds CZK 1 million in one calendar year, you must become a VAT payer.

Contributions: social and health insurance

In connection with business activities, the host is obliged to pay social and health insurance.

Registration at the local office

Every landlord via Airbnb should report this to the local authority in order to pay so-called holiday and accommodation fees. Recreational or spa fee is 15 CZK per person per day, accommodation fee is 6 CZK per occupied bed per day.

Suitable apartment for rent Airbnb

Every Airbnb host should consider whether his apartment is suitable for rent. The location, accessibility and surroundings of the apartment play an important role. How to rent an apartment to make it attractive for tourists?

Location

Airbnb Prague is a paradise in the Czech Republic. As the capital, it is the most attractive for tourists. Nice and relatively cheap accommodation in the center is the most popular item. If you decide to rent an apartment right here, you have to reckon with the fact that you will have a lot of competition.

In general, however, it makes sense to rent an apartment in tourist-attractive destinations and in well-accessible, safe and quiet places.

You can also find the Airbnb accommodation offer in other larger cities in the Czech Republic, such as Brno or the tourist town of Český Krumlov. However, according to reviews from several landlords, Prague is the most lucrative place in terms of earnings.

Cleanliness and service

The great advantage of a good host is the cleanliness of the environment and the level of services offered. After visiting the host on the Airbnb website, guests can evaluate the individual accommodation parameters. Having good reviews is therefore essential.

One of the most common services is housekeeping, some hosts also offer, for example, homemade breakfast or dinner or guide services.

Communication with guests and host approach

The airbnb host should be flexible, prompt and most importantly polite. You need to respond quickly and answer any questions guests may have. It is polite to thank the guests for ordering accommodation and to offer guests possible advice on what to visit in the area, where to eat well and the like.

Many tourists like to share an apartment directly with the host and can ask him these questions in person. Your phone number should be available at all times.

Web presentation

The presentation on the Airbnb website is very important. Insufficient number of photos or photos in poor quality will not be a great attraction. It is ideal to take pictures not only of the apartment, but also its surroundings, pay attention to details and take photos so that they look professional. Photographs are one of the main aspects when deciding to rent an apartment.

It is also necessary to list Airbnb rules for the apartment, number of beds, availability, presence of wi-fi, roommates or even pets.

If you want to start renting, it is ideal to look for such practical advice. The airbnb experience of a host who rents an apartment successfully may be priceless.

How Much Money Can I Make On An Airbnb Rental?

Making money on Airbnb may seem like an easy matter, but you need to consider any costs that may arise. The apartment needs to be maintained, for example, some hosts also offer toiletries or small snacks as part of the rental or pay for cleaning services.

In the Czech Republic, rental prices range from around CZK 300, while the average price is around CZK 1,500. You can rent part of the apartment, the whole apartment or apartment, but also the whole house or cottage.

Short-term versus long-term lease

Renting an apartment via Airbnb is not very suitable for long-term rent. Most tourists are interested and other people would usually not be willing to pay such high amounts for a long-term rental. If the rental price per night is around CZK 1,000, it is an advantageous amount for tourists for a few nights, but not for tenants for longer stays.

However, you can set such amounts for tourists that will be acceptable to them and financially interesting for you. In the beginning, it usually starts at lower amounts, and after implementation and good reviews, the value can go up. It is not always guaranteed that you will be full every day for a whole month. It depends, for example, on the season, on the competition in the given city or the type of apartment.

At the price of CZK 1,000 per night and occupancy, for example, two weeks a month, you can earn around 14,000, which is not entirely bad. However, successful hosts can climb much higher amounts and thus invest in other apartments, for example.

However, it is always necessary to calculate all costs, including energy, equipment and fees related to business activities.

Airbnb rules aren’t always straightforward, but if you stick to them, offer guests a clean and friendly environment, or have original experiences, you can become a successful entrepreneur in this emerging market.

Real estate investing

• For beginners, I recommend the seminar by Nely Kubasova Investing in real estate from A to Z and a seminar by Ivana Brits Investment in housing as a way to passive income girls there fully reveal his cards on investment and their strategies, so its there to find even those who have already invested .