Do you wish you could make some extra income through Airbnb, but lack the funds to purchase a property? Many people assume that this is an obstacle and venture no further.
However, the truth is that it is more than possible to start Airbnb with no money—you just have to explore your options and think outside of the box.
Here, we review 16 ideas to help you get started, with options for how to buy Airbnb property with no money as well as how to start an Airbnb business with no money. Keep reading to find the best option for you!
Disclaimer: Lodgify is an Airbnb Preferred+ Software Partner. This post, including any claims or statements within, is solely from Lodgify and is not endorsed by, directly affiliated with, authorized, or sponsored by Airbnb in any way.
Don’t see the form to download the Airbnb business plan template? Click here.
Can you start an Airbnb with no money?
Absolutely! There are numerous options to get into the Airbnb business with no money.
If you want to own an Airbnb yourself, you can look into Airbnb financing options to secure cash for a down payment on a property. Or, if you’re simply interested in being involved with Airbnb or want to work in the Airbnb industry, you can choose between options such as co-hosting or offering Airbnb experiences, upsells, and related services.
We have 16 great ideas to get you started! Keep reading to learn how to start Airbnb with no money.
How to buy Airbnb property with no money
Set on purchasing an Airbnb property but don’t have the cash for a down payment? Don’t worry, you have multiple options to secure financing. Let’s take a look at how to buy an Airbnb with no money down.
1. Apply for a home equity loan or HELOC
If you own the home you live in, you can tap into your home’s equity through a home equity loan or home equity line of credit (HELOC). Then, you can use that money to make a down payment on an Airbnb property.
Both home equity loans and HELOCs borrow against the equity your home has accrued. However, home equity loans give you the cash in the form of a loan, which you’ll receive as a lump payment and pay off monthly over time with interest, whereas HELOCs give you a line of credit. Like with a credit card, you can use as much of the HELOC funds as you need, and then only repay what you use.
Remember to be careful, though: Both home equity loans and HELOCs are second mortgages. Speak with a financial advisor before applying for either to ensure it’s a smart financial move for your needs.
2. Do a cash-out refinance
Cash-out refinance is another common way to secure financing if you already own a home. This involves refinancing your existing mortgage for more than what you owe, and then using the extra money to make a down payment on an Airbnb property.
Like with home equity loans and HELOCs, a cash-out refinance constitutes getting a second mortgage and using your home as collateral. So, be careful and make sure you’re prepared to take this risk.
3. Secure seller financing
If you know the seller of the property you’re interested in buying, they may be open to helping you finance the purchase. With seller financing, you essentially make monthly mortgage payments directly to the seller rather than a traditional lender.
As long as the seller is willing to overlook a down payment, you can purchase a property this way with no money down. You may also be able to negotiate a better interest rate and monthly payment size.
4. Enter into a partnership
Wouldn’t it be nice if you could simply find a partner who could finance your Airbnb property? Before you write this off as a pipe dream, consider whether it might actually be feasible.
Real estate investor partnerships are actually quite common. While many partners go into business together to share the costs of purchasing a property, you might be able to find someone willing to eat all the costs if you bring something to the table as well. For example, if you’re an expert in the Airbnb industry and property management, your partner may be fine with covering the down payment in exchange for your expertise.
Keep in mind that there are different kinds of partnerships and that they all involve planning and formal agreements. But if you’re looking for how to invest in Airbnb with no money, it doesn’t get any easier than this.
How to start an Airbnb with no money
If you’re interested in providing an Airbnb offering but lack the money to purchase an additional property (and don’t want to get financing), you still have options.
To be clear, all of our ideas for how to start Airbnb with no money involve working directly with Airbnb. For ideas on how to start an Airbnb-related business, skip to our next section.
5. Use your vacant property
Let’s start with the easiest and simplest solution: For those who already have a vacant property they’re not using, your best bet is to prepare it for hosting!
Maybe a relative left you a property, or you’ve moved in with your partner and now have a spare property. Whatever the case, this vacant property is a wasted opportunity every day it sits empty.
As long as the property is furnished and in decent shape, it shouldn’t cost anything to get started. Simply clean it up, take high-quality photos, and list the property on Airbnb!
6. Rent out a spare room
Do you have a spare bedroom in your house that no one’s using? Airbnb allows you to rent out private rooms in addition to entire properties, so this could easily be your door in.
Of course, this would mean sharing your common areas with Airbnb guests. However, it could be a great way to make some extra cash until you have enough to invest in an entire Airbnb property. Plus, coordinating check-in, checkout, and turnover is much easier when guests are so close!
7. Do Airbnb arbitrage
You don’t necessarily have to be a property owner to start renting out an Airbnb.
Airbnb arbitrage involves subletting a long-term rental on a short-term basis. Essentially, you rent a property with a long-term contract, and then re-rent it out at a higher nightly rate to turn a profit.
Keep in mind, however, that local laws and/or your rental contract may prohibit arbitrage, so be sure to read the fine print before getting started.
8. Become a co-host
The cheapest way to start Airbnb might just be to become an Airbnb co-host.
Basically, you’d find an existing Airbnb host (or someone who wants to become a host, and has the property and capital to do so) and offer your support. You’d have to work with your co-host to determine who does what, but your co-hosting duties might include things like guest communications, managing turnover, or writing guest reviews.
Of course, you won’t make as much money as you would if you were the only host, but there’s probably no easier way to start Airbnb with no money.
9. Offer an Airbnb experience
Another way of starting Airbnb with no money is to offer an experience. Airbnb experiences are simply activities that enable visitors to experience a destination more authentically, get a taste of local flavor, and meet fellow travelers.
You might, for example, provide a guided tour, host a cooking class focusing on a local dish, or lead a craft activity. Just make sure the experience you want to provide meets Airbnb’s criteria, and then you can manage your bookings and payments directly through their platform.
How to start an Airbnb business without money
You can be in the Airbnb business without actually providing an Airbnb accommodation or experience. If you’re simply looking for how to start an Airbnb business with no money, we have some ideas for Airbnb-related business ventures you can start sans cash.
10. Become a property manager
One of the best ways to start an Airbnb business without money is to become a property manager. Similar to becoming a co-host, working as a property manager enables you to manage an Airbnb (or multiple!) without putting up any capital or property.
Working as an Airbnb property manager requires knowing the business and industry inside and out. You’ll have to strategize to maximize bookings for the owner and manage all daily operations, such as marketing, guest communications, and turnover.
While requirements vary by state, you might not need a specific degree or license to become an Airbnb property manager. Check out our guide to short-term rental property management to learn more.
Interested in becoming a property manager? Check out our Lodgify Academy course on How to Start Your Own Property Management Business for Short-Term Rentals.
11. Join a vacation rental franchise
Like the idea of becoming a property manager, but worried about starting a business from scratch? Another option is to join a vacation rental franchise, a business model that provides property managers with the structure, systems, and resources to start their own business while maintaining the brand of the overarching franchise.
To gain the benefits and oversight of a vacation rental franchise, you’ll have to pay a fee and accept a lesser degree of control in how you do business. The payoff, of course, is that you’ll significantly reduce the risks associated with starting your own company.
12. Start an Airbnb cleaning service
Every Airbnb needs cleaning during turnover, and many hosts and property managers decide to outsource this service because they simply don’t have the time to do it themselves. So, whether or not it sounds like your dream job, Airbnb cleaning is certainly in high demand.
Providing Airbnb cleaning services will likely involve signing an Airbnb cleaning contract, which ensures both you and the property owner know what’s expected. Some hosts also have a standard property appearance checklist to set even clearer expectations for how they want the property to appear for each new guest.
13. Provide an Airbnb upsell service
Another option for how to start an Airbnb business with no money could be to offer Airbnb upsell services. You’d simply reach out to existing Airbnb hosts and see what kinds of additional services they think their guests would be interested in. Potential upsell services include airport pickup, food delivery, snow shoveling, fresh-cut flowers, massages, and fitness classes.
Airbnb hosts will be glad to be able to offer their guests a better experience, and you’ll gain a new Airbnb business venture without having to put down cash to get started.
14. Specialize in Airbnb marketing
Simply posting a listing on Airbnb isn’t enough to drive bookings—a lot of marketing efforts are necessary to boost a listing’s visibility and ensure it stands out from the competition. This involves identifying a property’s unique selling points and target audience, and then developing effective marketing strategies, such as blogging, social media, and search engine optimization.
So, if you know a lot about marketing or are willing to learn, this is another in-demand service you could offer Airbnb hosts.
15. Offer Airbnb consulting services
Do you know a lot about the Airbnb industry and want to put it to use? Consider becoming an Airbnb consultant.
Airbnb consultants are tasked with helping Airbnb hosts optimize their business. This might involve any number of tasks, including:
- Brand development and marketing strategies
- Building an effective tech stack
- Revenue management
- Acquiring or selling properties
- Finding solutions for pain points
While you could be a generalist, many Airbnb consultants choose a specialization, focusing specifically on a certain property type or service (think marketing or technology implementation). So, consider what you’d be best at before getting started.
16. Become an Airbnb photographer
If you already have a camera and like photography, another one of the cheapest ways to start Airbnb is to become an Airbnb photographer.
Airbnbs need attractive, professional photos to make their listings stand out. And it’s not just a matter of having high-quality photos—they should make good use of lighting and angles, show off the Airbnb’s amenities, and even tell a story in order to really make a difference.
Hosts know this, but most don’t have the equipment or expertise to make these photos a reality. That’s where you come in!
Frequently asked questions
Do you need money to start an Airbnb business?
Starting an Airbnb business is certainly easier if you have a little capital at your disposal. However, with creativity, determination, and hard work, it’s certainly possible to start an Airbnb business with no money.
For example, if you want to own an Airbnb yourself, you can look into Airbnb financing options to secure cash for a down payment on a property. Or, if you’re simply interested in being involved with Airbnb or want to work in the Airbnb industry, you can choose between options such as co-hosting or offering Airbnb experiences, upsells, and related services.
Scroll up to learn more about our ideas for how to buy Airbnb property with no money and how to start an Airbnb with no money.
How do I start an Airbnb business with no money?
There are numerous options to start an Airbnb business with no money. For example, you could:
- Secure financing to purchase an Airbnb property with no money down.
- Consider renting out a spare room, becoming a co-host, doing Airbnb arbitrage, or offering an Airbnb experience. This way, you’re working directly with Airbnb, but don’t have to have any money or property to get started.
- Open a business that provides Airbnb-related services, such as property management, consulting, marketing, or photography.
Want to learn more? Simply scroll up to learn how to start an Airbnb business with no money!
How can I own an Airbnb with no money?
Your options will depend on your specific situation, but some ideas for how to own an Airbnb with no money include:
- Securing financing to purchase an Airbnb with no money down, such as through a cash-out refinance, home equity loan, or HELOC
- Entering into a partnership with someone who can front the money for a down payment
- Renting out a vacant property you already own
- Renting out a spare bedroom in your home
- Doing Airbnb arbitrage, which involves renting out a property and then subletting it
You have even more opportunities if you’re open to working with Airbnb without actually owning a property, such as co-hosting, offering an Airbnb experience, or opening an Airbnb-related business. Scroll up to learn more about all of these ideas and find the best option for you.
No money? No problem!
See, starting an Airbnb with no money is possible.
Whether you want to go the traditional route and own your own Airbnb, open an Airbnb-related business, or pursue a creative workaround, a lack of funds shouldn’t keep you from working with Airbnb. Your options are numerous, and which is best for you will depend on your needs, skills, and goals.
Whichever route you choose, we wish you the best of luck in your new business venture!
Don’t see the form to download the Airbnb business plan template? Click here.
Disclaimer: Lodgify is an Airbnb Preferred+ Software Partner. This post, including any claims or statements within, is solely from Lodgify and is not endorsed by, directly affiliated with, authorized, or sponsored by Airbnb in any way.
