Passive Income: 5 Ways To Invest Small Amounts Of Money (From $500 To $0)

If you think you must have a lot of money before you can start investing to generate passive income, think again, because in this post you will find 5 different methods through which you can invest your money with amounts as little as $0!

Many people are aware that they should invest their money to be able to secure their future and create a better life for themselves and their families.

But many people also assume that in order to be able to start investing and create a passive income source for themselves, they need to have a lot of money first, and that is a wrong perception.

If you really want to start investing and create some passive income sources for yourself, you can start investing right this second. Even if you have $0 in your bank account.


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Investing if you have anything between $500 and $50

1. Mutual funds

Investing in a mutual fund is like investing in a large group of stocks. The money is pooled from multiple investors to invest in these assets.

Many mutual funds require thousands of dollars as a minimum investment, but there are some that can be as low as $50.

What you will need to do to know if this is a good fund for investment or not is to track this fund’s performance over the years to see its pattern and how and when the rates of interest are affected.

You would also want to pay attention to the annual fees deducted from your account and compare it to the interest you would be getting to make sure that the fees are not too high.

While investing a 50$ in a mutual fund, where maybe your annual interest would be something around 7%-10% for most funds, does not seem like much of profit maker, if you can manage to increase this amount over time, like maybe add $50 every month to your profile, this would create a much better profit over time.

You may also want to read this breakdown of how studying the history of a certain fund and investing something as little as $500 can make you more than $520,000.

2. Real estate crowdfunding

Real estate crowdfunding is defined as an online pooling of capital from investors to fund mortgages secured by real estate, such as redevelopment of distressed or abandoned properties, equity for commercial and residential projects, acquisition of pools of distressed mortgages, home buyer downpayments and similar real estate related outlets.

So for someone who is looking to invest a small amount of money, there are a number of crowdfunding websites that work on connecting investors to these kinds of projects that need funding in exchange for a profit from the project.

One of the most well-known real estate crowdfunding websites is Fundraise where you could start with only $500 to invest in real estate and start gaining annual profits. For similar real estate online investing options check this article.
You can also find crowdfunding websites that would accept investments for as little as $100.

The above options are mostly available for US residents only, though. For European countries, you can check the options listed here.

I haven’t been able to find ones that would accept funds from other countries (specifically Egypt since this is where I am), if you happen to pass across one, please let me know in the comments.

3. Retirement account

A retirement account is a form of individual retirement plan, provided by many financial institutions, that provides tax advantages for retirement savings.

In the US, there is the 401(k) which in most cases is available for employees through their employers, and the good thing about this is that you can actually decide how much money you would like to have deducted from your salary to put into this account.

You also get to choose the kind of investment you would like to have your money put into. Investment options available include individual stocks, mutual funds, and ETFs. You can read more about the benefits of this plan here.

So if you do have that provided through your job, you already have an investment going, you should just decide how much of your salary you would like to deduct to make for a better long-term profit.

However, if you don’t have a retirement account, you probably should. You can start your own retirement plan by following the steps in this article.

Here, in Egypt, it’s not the same process. Because what employees get is mainly a pension. It is a fund into which a sum of money is added during an employee’s employment years, and from which payments are drawn to support the person’s retirement from work in the form of periodic payments.

So I would suggest starting your own retirement plan through any of the available insurance companies. I am more inclined to registering with ones that are advertised through banks, I don’t know if this makes any difference integrity-wise or security-wise, but it’s just a personal preference.

Some well-known examples include AXA (through CIB) and Allianz (through Emirates NBD). Some of these plans you can start with as little as a 600-pound payment per month.

Investing if you have $0

Now let’s say you don’t even have a dollar/pound to spare, you literally have no money, can you not start an investment that can bring you passive income?

Of course you can!

4. Airbnb

This is a company that facilitates tourists’ stay in a country by providing them with an online service to rent apartments, rooms, and hostel beds, etc, for the short period of their stay.

The best thing about Aribnb is that you don’t need to have a spare house to be able to make money renting, you can simply rent a room in the house you already live in and gain income with literally no extra cost on your part.

What you will be required to provide your guests with will all be things that you already have in your house which are the basic amenities for living.

You can read more about the requirements here.

One other great thing about Airbnb is that even if you don’t have a spare room at your place, you can still make money with them through providing an experience instead.

This is not exactly a passive investment; however, I couldn’t bring up Airbnb and not mention it, since you will be making really easy money.

An experience, as defined by Airbnb, is an activity designed and led by inspiring locals. They go beyond typical tours or classes by immersing guests in each host’s unique world. It’s an opportunity for anyone to share their hobbies, skills, or expertise without needing an extra room.

So, offering an experience can be anything from cooking them traditional home made dishes to taking them on special tours in places they wouldn’t be able to reach on their own, and many more examples.

This would be an easy and fun way to earn money. If you want to learn more about how you can easily make money with Airbnb, you can read this article I published earlier Passive Income: How To Make Money With Airbnb 

5. Use your skills

If you have certain skills that can be put into use (or are willing to learn) this could be a great source of passive income for you. But what kind of things can you create that would help you generate passive income?

5.1 The world of design

Design can be in more than one form. If you are a web designer, for example, you could create and sell website themes. You can find here the best markets where you could sell your themes.

If you’re a graphic designer, you have various options to make money, you can design and sell book covers, or printables that you can provide as PDF files (downloadable material) such as calendars and planners, or even create print-on-demand designs for notebooks, T-shirts, and mugs, etc..

5.2 Photography

You can make money simply by taking photos and putting them up for sale on the various websites available such as iStockphoto or Shutterstock.

All it takes is the camera which is already in your phone, given that most smartphones at the moment have a good camera quality, and a few videos, like this one, to help you take good photos, and probably some passion for photography in the first place.

5.3 Create an online course

Another option where you can make passive income is if you put together an online course. If you have a particular skill or an expertise in any field, you can put together a course material and upload it as a series of lessons on a teaching website. And every time someone enrolls in this course you get paid.

There are plenty of websites available where you could create and sell such course. Teachable is one great example where you would also find resources and a lot of useful material to help you create a professional looking course.

5.4 Write an ebook

The last and probably most time consuming option (maybe it’s a tie with the online course) on this list is to create an ebook.

This can be something as simple as a how-to guide to walk someone through using a certain device or create something DIY or anything else that you think someone might need help with and is not already available or that you think you can deliver in a better and easier way.

Or you can create a more in-depth book where you share extensive information through your knowledge and experience in a certain topic. Check this list of websites to see where you can sell your ebook.

You can also find more details on how to make money online in Passive Income: 5 Online Businesses That Work

Till next week, happy days!

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Real Estate Investing: Buying, Flipping, and Renting (A Realtor Experience)

If you’re interested in investing in real estate but not quite sure how to go about it, how to choose the right house, how to flip or choose the tenants to rent to, in this guest post, by Erin Goddard, you will find the answers to all this and more.

I am honored to be a guest on Ray’s blog. This is something very special, but I can only hope to be as helpful as Ray.

I hope to offer some ideas on the great potential investing in real estate can be through our experiences of flipping and renting out homes. I do believe we have had successes, done mistakes, and learned a lot that are all worth sharing.


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Our Background

My husband and I started a small business in the real estate market in the beginning of 2016.  It is a relatively new endeavor to us, but in that time we have bought a total of 6 homes: 3 of them we turned into rentals, and 3 of them we flipped.

We also sold the first home we ever bought and owned to move when my husband changed jobs and relocated. So far, we have learned that no experience has been the same and the learning experiences in each process have been great, as in massive, but also good.

I was a math teacher with very little construction knowledge. My husband was an environment compliance manager at the time we started, so he also had an unrelated job. He, however, did have finish carpentry experience, plumbing experience, and roofing experience from past jobs and working with family members in these fields.

How to find the right real estate property for investment

To buy a home at a low cost is ideal obviously. This takes a lot of time searching, establishing good connections, and sometimes having plain old luck.

The Search

MLS feeds

Multiple Listing Services are the networks real estate agents in regions of each state link into to post the listings they have. Companies like Zillow and Auction will connect all of these regional networks nationwide.

Zillow and Realtor are what we use. I am afraid we have not ventured outside of these two.

Realtor does update its MLS feeds more often. This allows you to see the listings go up a little quicker and also the statuses change.

The various filters on Zillow, like looking at the maps, comparing costs, looking at tax histories, all make Zillow a little more user friendly. We constantly would be surfing and checking into these sites.

Sheriff sales

Sheriff sale schedules can be found on county websites. The sheriff sales are homes in foreclosure that the lender has handed over to the county to try to sell. On the sheriff sale site, there will be a time and location (often the courthouse), and it is an auction where the house goes to the highest bidder.

Buyers do not necessarily get to see or know the condition of the house. There is usually a reserve price (a starting bid), and the home tends to be sold in “As Is” condition. The risk, of course, is not knowing the conditions of the home, unless you have snooped around it- which I confess, I encourage.

Be aware of  the “As Is” contract. In most contracts, the home comes with disclosures. The contract between buyer and seller is based on the agreement of the truths of the disclosures.

If the roof is leaky, and the seller lied, there are legal means the buyer can get out of the contract. Not in an “As Is” contract.

Our experience with buying through a sheriff sale was great. The reserve price/starting bids sometimes are surprisingly high, but those we just walked away from.

The homes eventually go up for auction again for another opportunity to buy at a lower reserve. Keep an eye on them. Go in with a set price you want and try not to budge.

Auction.com

This is an interesting company which I compare to ebay for houses. Sometimes Zillow will link to an Auction file for a home. These again are bank repossessions.

The fine print really needs to be read for these homes because sometimes the foreclosure process is not as far along as you would hope. Closing could take a long time, and may not close at all..

Banks go to Auction.com to try to get a sale on their homes. These run the same risks as the sheriff sales with the “As Is” conditions.  

I registered for a user name, and it was very easy to do. I also easily placed a bid. Four days later, after no one upped my bid, we won, and I was kind of in shock in the fact I had clicked a few buttons, and now we had bought a house. So, this was easy to use.. Almost too easy.

Auction had people contact me right away. Communication was very quick and also helpful. I would say Auction had good customer support, but they are an even more distant third person seller than a sheriff sale.

The one hiccup we had was the abstract never came to us. We ended up having to pay for getting a new one made. Abstracts run between $1000- $2000. Still, overall I would say our experience with Auction was very good.

Connections

Getting in touch with the real estate agents in your area can really save time on the searching; however, one thing to know is often times real estate agents already have a calling list of established real estate investor; be persistent!

Call and politely inquire. Really present yourself as someone ready to renovate or invest. If you can get a trustworthy, strong relationship with a real estate agent, that really sets you up for more success in the search.

Luck

Sometimes after all of that time, nothing will show up. Sometimes, it really just takes a little luck and good timing.

Learn how to choose the right property for investment.

How to start investing in rental properties

Something we heard repeatedly as we looked into renting properties was screen your tenants.

The quality of tenants can make a world of difference in the experience and the profit of your real estate. You must be careful to be fair, however; and it is illegal to deny tenants for reasons related to sex, gender, race, sexual orientation, etc…

We did applications for our tenants. Applications serve a lot of purpose. You have the right to know who will be living in your property and the potential tenant can show their initiative and a bit of their character by fully completing an application.

You need fair rules for your screening. Check your state for laws on being a landlord.

When it comes to screening tenants, I would say of the most important things to include on the application would be information about the following:

  1. Criminal record: look into their records. I suggest state online court records. I also suggest looking at facebook.
  2. Work history: Look for steady employment.
  3. References: Call the references. You could even have something for the references to fill out.

You want responsible, respectful, and financially able tenants.

Eforms have tweakable applications for free and can be downloaded as a word or PDF file.

Are rental properties a good investment?

We purchased two rentals at about the same time a year into the start of our small real estate business. After a successful renovation and sale of our first flip, we rolled the profit we got into two low cost homes.

They have been doing great for us in bringing a nice stream of income. We have had good relationships with our tenants, low maintenance requirements, and a steady stream of income.

I highly recommend rental properties as a fairly  passive income. We continue to be on the search to add more rentals to our binder, and will be happy to move on the right property.

The pros of investing in rental properties

1. Doesn’t require A giant capital

You are usually not looking for ritzy and glamorous homes. For the rentals we have, we never went in to transform them; we cleaned them. That’s it. Rentals are a good starter up project for passive income in real estate.

2. Passive income

With good screening practices, there should notbe a lot of the hands on stress of maintaining a good property with good tenants.

I do not think I need to say how great passive money is. Really we are just sitting back from a month to month basis, and we have an investment which is an asset to our financial folder bringing in income.

Again, assuming you have good renters, the property is for the most part maintaining itself. The home is truly an investment, growing in value with the market under the care of the renters and a little bit of your overseeing.

The steady monthly income is not huge after considering costs, but it is better than nothing. It is a $450 check a month in our hands that offset any of the costs, so we are losing nothing and coming out ahead.

3. A double money maker

After the home has provided affordable living for the rentee, and brought in a nice income for the renter, it can be brought up to date for resale.

Whether you have met the break even point or not through the renting period, the home can bring in a profit should you decide to sell.

The cons of investing in rental properties

1. Money gets tied up

Money gets tied up specially if you have a mortgage on the rental. I almost said a steady trickle of income above in the pros. The costs of mortgage, taxes, and insurance, not to mention maintenance, take away from a strong flow.

Make sure to do the math that you are coming out ahead. This is a slow and steady journey to break even, and your money is not as fluid to roll into other investments.

As an example, we have one rental we put $4000 down on. Based on our carrying costs and the rental amount, it will be about two years for us to break even on it.

2. Renter drama

We have not experienced renter drama. We have been fortunate to have great people renting. I’d like to say we did a good job screening.

But even with screening, tenants can go wild and thing can get legally ugly. The time taken to meet your renter’s needs and establish a respectful relationship is so worth the while.

3. Property damages

Things break. My husband has done some dryer troubleshooting. We have had to buy a new refrigerator all of a sudden. There has also been hail storms where we had to deal with a lot of insurance and hiring for repairs.

The responsibility as landlords to the tenants can cause for some sudden stress.

How to get started in the flipping houses business

We had a first dream flip that started us out. There was a little luck involved. We found a home that had been sitting on Auction. It was a first flip home in consideration, so we were kind of weary of Auction.

The auction ended having not met the reserve. Now, most times, the homes go right back up and through another “auction.” We did not know this and called a local real estate agent. It just so happened, the bank had listed it with a real estate agent specializing in foreclosures, and we called the day she got it.

We ended up with it. Here are some of the before and afters.

It was a mess, but we got it for very low. Again, this price will be trivial because it totally depends on the city you are buying in, but we landed this home for $27,500.

After you think you have found a good house- low in price and shabby, but not too shabby, you will want to weigh the possibility of flippling.

Flipping takes a leap. It is risky, but you also can arm yourself with some risk minimizers.

Mistakes to avoid when buying a house to flip

  • Drug houses. Homes with ammonia smells are commonly associated with meth.
  • Structural issues. We just are not knowledgeable of foundation fixes, and we would have to hire it out. Foundations can be expensive.
  • Ugly Houses. This may be weird, but you should be able to have vision of what you can do to the house. We do not tear down walls and transform. This, I think, is a common mistake for new flippers. The goal is not to pour a fortune into making an entirely new house.

Here was another home. You can see how we really just worked on what was there; refinished the floors and painted.

How much money do you need to flip a house?

This is hard to go into because it will vary entirely on the region you are working in. I did just want to show a glimpse of some costs to consider.

For our first home, our most successful, here is the profit we got.

cost details of flipping houses, real estate investments

It is also good to keep track of how many hours you spend. We tracked our time doing all of the work as well as any expenses we made using a shared Google spreadsheet. We documented about 800 hours.

Keep the receipts and this documentation to help with income taxes, which as seen in the table is a big chunk we kissed goodbye.

Is flipping houses a good investment?

We were hooked on flipping homes on our first home, and it profited enough to get us rolling into more rentals and more flip homes.

Despite the hard work, the satisfaction and profitability makes flipping another great investment if you are willing to put in the work and time.

I have to sometimes remind myself of the great light at the end of the tunnel when we are in the middle of the project, sweaty and on our knees in renovations, but the investment is worth the while.  

The pros to investing in flipping houses

1. can be very profitable

I put this statement here ignoring its counter argument. There is risk, obviously of the opposite, a flop. Some homes can be huge money pits, and we have seen some in the walk through where it would take more renovations than you could ever get out.

With good managing, however, the profits can be huge- another whole income to the yearly income. As I showed in our table above, we nearly doubled our investment in the end in a year’s time. We walked away that year with an amount written on a check larger than we had ever seen on one little piece of paper.

We have not ever gotten into the larger markets around here (we have tried, but they are very competitive). We have stuck to rural locations with smaller home costs. The gross profit in the larger markets would be riskier, but as the saying goes, also could be much a much higher reward.

2. Being your own boss

Our flips have been done on the side of full time jobs. My husband would go to his job, and then off to the renovation home he would go. Or, he would come home to watch the kids, and I would go do my jobs. I am a stay at home mom, but I too consider that a full-time job.

We worked with our schedules, and it was manageable- tiring, but manageable! We both enjoyed having the power in our hands to make this business work.

3. Satisfaction

We have had great satisfaction in the end. Though the process is rough at times, the finished product is amazing. We had the opportunity to dive into something we really loved to do. This job is a job of being the boss of yourself.

I do believe, the harder you work in this job of flipping houses, the better the pay off. It takes a lot of time, bargaining, work, and sweat, but if all of those are played right, a hugely profitable reward comes.

The cons to investing in flipping houses

1. It is A LOT of work

The man hours we recorded were on the low end of 800 hours. On shows, you see crews getting homes done in a month. We, being just two people took a lot longer. It always seemed we would miss our goal to finish by a couple months.

The end is particularly difficult, getting the last touch ups and details done, cleaning all of the construction out. It is not glamorous; it is dirty, sweaty, ugly, and exhausting.

I also do not know I would encourage flipping without having some construction skills and background. The profit margin would be greatly reduced if needing to hire out the jobs.  

2. Flops happen

We have not had any loss, but it is tricky. The costs add up, and you need to be careful. Having said it is a lot of work, we have had a home come out to have $8,000 of gross profit. The return rate was still better than putting gaining interest from letting that money grow in a savings.

Still, better than nothing, but if you consider we put about 1000 hours into it, we were managing and working an $8 per hour wage. The type of work that goes into it this is not an $8 an hour job. Flops will happen. This market can be risky.

Do your research and GO FOR IT

If you have read all of this, I commend you. You are getting a good start with researching. If you have not already found “Bigger Pockets,” I definitely recommend their content and joining their network.

They have a vast amount of experience to offer dealing with most of the questions concerning investing in real estate, whether it is renting, flipping, airbnb, or whatever else. They have a podcast and blog, and they are both great with very relevant and helpful experiences.

A lot of being a successful real estate investor is to be proactive and not reactive. With any business endeavor, the more risk, the more reward.

Real estate is risky, yes. We have found it very rewarding. We have been able to use our skills, learn new ones, and pave a foundation for a working business we enjoy. I wish this fortune to everyone.

Thanks, everyone, and thank you, Ray.

Erin is a blogger at Erin Baby Steps where she ponders out and takes on a mission to spread an awareness for math as it relates to toddler home learning/education, finances, projects, and even date night activity ideas.
She would love any support and suggestions as she takes one baby step at a time in raising family and meeting some personal goals.

Passive Income: How To Make Money With Airbnb

In this post, I answer 7 questions that cover everything you need to know to start making money with Airbnb.

Previously, in the Passive Income: 4 Real Estate Investing Options post, I wrote about some of the many ways one can invest in real estate. And one of the methods mentioned there was buying a property and putting it up for rent.

Renting a property gives you a steady passive income source. However, some of the downsides to this was 1. you may end up with tenants who don’t pay and 2. the amount of money involved to actually buy a property.

But what if you can rent a spare room in the house you already live in and with a guaranteed payment?

Recently, I came across an ad for Airbnb, and I didn’t actually know much about the service other than that it’s one that provides houses for tourists and such.

I also didn’t know that the service was available in Egypt, which it is!


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1. What is Airbnb?

This is an American company that facilitates tourists’ stay in a country by providing them with an online service to rent apartments, rooms, and hostel beds, etc, for the short period of their stay.

The apartments and rooms available for rent is provided by the locals of that country. They put their available properties up for rent on the Airbnb website, and they get contacted once a tourist is interested in renting their place.

The website provides customizable search options for the guest to find the exact type of property with all the amenities they need. And it gives the host the option to set house rules for the guests to know and agree on before booking.

What you can provide as a host:

1. Place

You can list any kind of property. It can be a shared room, a private room, or an entire house.

The place needs to be clean, secure, and have essential amenities like a pillow and a towel for each guest. You can read more about the basic requirements for hosting here.

2. Experience

Airbnb Experiences are activities designed by locals. They go beyond typical tours or classes by immersing guests in a special kind of activity that they wouldn’t be able to experience on their own.

It’s an opportunity for anyone to share their hobbies, skills, or expertise without needing an extra room. Read more about experience hosting here.

2. Why do tourists use Airbnb instead of hotels?

For the tourists who are looking to spend a short time in your country, most of them want to get the most out of their stay with the least amount of money possible. Airbnb provides them with this option when they put properties or rooms for rent at quite low prices compared to any hotel room in that same area.

It also gives the tourist the ability to live like locals in the country which maximizes their experience.

Besides, many Airbnb hosts provide their guests with more than just a stay, but they help them make the most out of their stay by advising them of places to visit that only a local in that area would know.

That is of course beside the ability to actually book an experience; something that you can only have when touring with a local.

People don’t use Airbnb overtly to trust people more. They use it because they want to get a better sense of the culture and to save money. A by-product was that they live in someone else’s shoes.

Brian Chesky

3. How is Airbnb different from traditional renting?

There are huge advantages to renting through Airbnb instead of the traditional renting, but there can also be some disadvantages.

Advantages:

Guaranteed Payment

As opposed to renting your house the traditional way where you can face an issue like a non-paying tenant, when you rent through Airbnb, you will never have to deal with this kind of hassle because they handle all payments for you. And the guest makes the full payment through the website in advance.

Host Guarantee

Airbnb have insurance programs which secures you and your house in the rare case of any incident occurring that causes damage or injury.

Whenever a guest makes a reservation and stays at your place, you’re automatically covered by their Host Guarantee. You can read more about the terms and conditions of benefiting from this here.

Home Insurance

Host Protection Insurance program provides primary liability coverage of up to $1 million USD per occurrence. The program protects against liability claims that happen in a listing, or on an Airbnb property, during a stay.

You can read more about what is covered by this program here.

Experience Insurance

Experience protection insurance provides experience hosts with free liability insurance of up to $1 million USD to protect against personal injury or property damage claims.

You can read more about what is covered by this insurance here.

Disadvantages

Not a stable source of income

Unlike renting a house to a resident who is going to live there for at least a year and possibly more, renting to tourists will not provide you with that monthly stable income.

Some people can have guests booking their place every month but that is not necessarily the case with every host.

How often you would get a booking would mostly depend on the location of your place (how close it is from sightseeing areas that tourists would be interested in) and how appealing it is (the reviews you get).

Possible damage

There is still the possibility that you might encounter damage that is not covered by the Airbnb Insurance.

4. Is Airbnb safe?

This was an obvious concern when I first learned about the service. If you have a spare room that you want to put up for rent, is it really safe for you to invite complete strangers into your house? Or if you are the one looking for a place to stay, would you feel safe staying with a complete stranger in a foreign country?

“On any given night, 2 million people stay in homes on Airbnb in 81,000 cities all over the world. There are nearly 5 million listings in 191 countries to choose from —that’s more than the top five hotel chains combined.”

So how did this service actually manage to get so popular and have millions of users around the world, whether hosts or tourists? How do all these people trust this kind of service and feel safe using it?

Here are some of the measures taken to provide safety for the host:

They run hosts and guests against regulatory, terrorist, and sanctions watchlists. And for hosts and guests in the United States, they also conduct background checks.

Every guest is asked to provide their full name, date of birth, photo, phone number, email address, and payment information to Airbnb before booking. Home hosts also have the option to require guests to provide Airbnb with a government ID before booking their listing.

Reading reviews from previous bookings from that guest and what other hosts had to say about their stay with them can also be helpful. These reviews can only be added after the reservation is complete; so they are based on actual experience.

Every Airbnb reservation is scored for risk before it’s confirmed. They use predictive analytics and machine learning to instantly evaluate hundreds of signals that help flag and investigate suspicious activity before it happens.

And their customer service is available 24/7 in 11 languages.

You can read more about the Airbnb terms of safety and protection for both hosts and guests here.

Airbnb has proven that hospitality, generosity, and the simple act of trust between strangers can go a long way.

Joe Gebbia

5. Is Airbnb legal?

The service is legal to use in Egypt, so far. However, Airbnb services has been banned by a number of cities and countries due to housing and rental shortage and pricing issues.

So you will need to check whether or not it is legal to use this service in your city before you list your property for rental.

6. How do you become an Airbnb host?

All you need to do is visit their website to sign up and list your property for free.

When listing your property you will be asked to specify all the available amenities and facilities provided, and of course the exact address of the property.

You will then need to provide photos of the place and a short description for the guest to know what to expect.

After that you will have the option to set the price you want, the timing and duration this place is available for rent, any requirements you look for in the guests you will host, and any house rules you want them to follow during their stay.

You are also asked to provide your personal details, such as your full name, your phone number and your ID for verification.

There is a very good article I read by someone who has been an Airbnb host for a few years, advising on how to be a great host, you can read it here.

7. How do you get paid with Airbnb?

First, Airbnb takes a commission fee of 3% from the payment you receive as the host (and between 6%-12% from the guest booking).

As mentioned earlier, guests make the full payment for their stay through the Airbnb website in advance. This payment is held for 24 hours after their check-in, which is the time the guest has to report to the company if there’s anything wrong with the booking or if they couldn’t reach you, the host, in which case the money will be refunded to the guest.

However, in the normal case where you are there for the guest or provided the key for them, following whatever scenario you’ve both agreed on beforehand, you will have your money transferred to you after the 24 hours.

There are several payment options provided. You can have the payment sent to your Paypal or Payoneer accounts, or you can have it directly deposited into your bank account, or it can be mailed to you as a check. The time of the transfer will vary based on the method you choose.

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Conclusion

This is a service that can certainly make a difference to your income with little to no effort on your part. It can also be fun for you, if you like to meet new people from different countries and make connections.

And while using this service can come with a potential risk, especially if you will be sharing the place you live in; however, you still have control over the guests you accept and you can ask for all the information you need about them before confirming their booking.

It will be less risky if you will rent a spare property, as long as you make sure you keep any personal or valuable belongings in a safe place (preferably not in the same house).

For me, I think this can be a really good source to increase my income and I do love meeting people of different nationalities. So I plan on trying this myself soon and will be sharing my experience in a later post once I have had my first guest.

Till next week, happy days!

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