Are there Airbnb millionaires?
Joining the Airbnb Millionaires Club
What’s the Buzz About?
The Airbnb Millionaires Club, started in 2017, now boasts over 200 members, each with a net worth over $1 million. These folks have turned the platform into a goldmine through smart property management and rental arbitrage. In 2020 alone, they raked in over $500 million in rental income. The top earner pocketed a cool $15 million that year.
Most of these millionaires are based in big cities like New York, London, and Tokyo. The average annual income for these hosts is $2.7 million. By juggling multiple properties and using savvy pricing strategies, they’ve hit millionaire status in just a few years.
| Year | Total Income ($M) | Top Earner Income ($M) | Average Annual Income ($M) |
|---|---|---|---|
| 2017 | N/A | N/A | N/A |
| 2020 | 500 | 15 | 2.7 |
Real-Life Success Stories
One of the most jaw-dropping stories is Chi Ta’s. After losing his company in 2017, Ta turned to Airbnb rental arbitrage, subletting his rented space to guests. Within nine months, he was earning six figures from 30 listings without owning a single property. Today, he owns 30 international properties generating at least £2.4 million annually. Chi Ta even created “The BNB University” masterclass to help others follow in his footsteps (Forbes).
Then there's Chris Choi, who pulls in over $600,000 a month from Airbnb. Managing more than 100 properties across Southern California, Miami, Philadelphia, and Dallas, Choi aims to hit $10 million in revenue by the end of 2022. He’s projecting about a million dollars in gross revenue each month for the next three months.
Another interesting case is an Airbnb program manager who initially earned a base salary of $260K with some bonuses. After Airbnb's IPO in December 2020, their options and stock grants shot up in value, adding $1.2M to their wealth.
For young professionals eyeing the property rental game, these stories are pure gold. If you’re thinking about starting an Airbnb business or hunting for investment property for sale, learning from these Airbnb millionaires can give you a solid game plan.
Check out more about the best place to buy property for Airbnb or get the lowdown on the average ROI for Airbnb to make smart moves. Curious about the profit margin for Airbnb hosts? Our related articles have got you covered, helping you succeed in this lucrative market.
Strategies for Airbnb Success
Want to make it big on Airbnb? There are a couple of tried-and-true methods to help you get there: rental arbitrage and the co-hosting or management fee model.
Rental Arbitrage Insights
Rental arbitrage is like flipping houses, but without the hefty price tag. You rent a property at a fixed monthly rate, spruce it up, and list it on Airbnb to earn more than what you pay in rent. The trick is picking the right spots and managing them well. Your success hinges on location, property type, and market demand.
Take Chi Ta, for example. After his company went belly-up in 2017, he started subletting his rented spaces to Airbnb guests. In just nine months, he was raking in six figures from 30 listings, all without owning a single property. Fast forward to today, and he owns 30 international properties, pulling in at least £2.4 million a year.
Here's a quick look at potential earnings with rental arbitrage:
| Property Type | Monthly Rent | Monthly Airbnb Income | Profit |
|---|---|---|---|
| Apartment | $1,200 | $3,000 | $1,800 |
| House | $2,500 | $6,000 | $3,500 |
| Luxury Condo | $4,000 | $10,000 | $6,000 |
Curious if Airbnb is a good investment? Check out our detailed article.
Co-hosting and Management Fee Model
Another goldmine is the co-hosting or management fee model. Here, you manage someone else's property on Airbnb and take a cut of the revenue, usually 20-30%. This model is a win-win: you earn money remotely without needing a big upfront investment.
Chris Choi is a prime example. He manages over 100 properties in places like Southern California, Miami, Philadelphia, and Dallas, generating over $600,000 in monthly revenue. By the end of 2022, he aimed to hit $10 million in revenue, with monthly projections around a million.
Here's a snapshot of potential earnings through co-hosting:
| Property Managed | Monthly Airbnb Revenue | Management Fee (20%) | Earnings |
|---|---|---|---|
| Apartment | $3,000 | $600 | $600 |
| House | $6,000 | $1,200 | $1,200 |
| Luxury Condo | $10,000 | $2,000 | $2,000 |
Want to dive deeper into becoming an Airbnb co-host? Check out our related articles.
By mastering these strategies, you can boost your chances of hitting it big in the Airbnb game. Whether you go for rental arbitrage or the co-hosting model, there's serious money to be made. Who knows? You might just join the ranks of Airbnb millionaires.
