30% profit, profit in 1 year: Is Airbnb property rental in India the next big rush? Hyderabad man reveals | Today’s news
In today’s world, everyone talks about the importance of a side hustle. One such popular idea on the Internet is to run Airbnb on a rental model. It suggests that anyone can do Airbnb business in India by renting or renting a property from the owner for a fixed monthly amount and then listing and operating it on the Airbnb platform, earning the difference between rental income and costs. But is it even that easy or practical in India?
Running Airbnb on a leasing model in India
A man from Hyderabad answered the question and shared his experience. Abhishek Mourya, who claims to be an Airbnb host and 9-to-5 consultant, warned against the rental model.
Mourya shared on Instagram in a now-viral video: “If anyone on the internet is trying to convince you that you can rent out a bunch of properties and continue to run an Airbnb business as a side hustle and make a**t tons of money on the side. They are lying to you. Trust me I’ve been in the business for the last three years. I know I don’t just rent the industry in and out of my business.”
Initial setup cost vs. profitability vs. profit
The user went on to explain that he could continue hosting on Airbnb because he was a property owner. He explained: “These are owned by my father. He tends to own a lot of properties and I can use them, furnish them with my own money and run them like an Airbnb business. The math only makes sense when you run it with just this equation because I’m furnishing my own home here. So I’m not chasing a break-even figure; that’s what I’m going to invest my house in. I’m going to make a profit, I’m not paying a fixed rent to anybody because these are my homes, so all the money, that I earn is my profit, after deducting maid service, general consumables and maintenance costs.’
20-30% profit margin
Mourya said once you rent a property, you incur high costs. After factoring in maintenance and other costs, the profit margin will typically be 20-30%. “Depending on the size of the apartment you’re renting,” he added.
He said it would take at least about one year to offset the cost of the equipment. “Then you start making money,” he said.
“No Side Hustle”
“So Airbnb is not a side hustle in India. It’s a full-fledged hospitality business. Go into it only if you’re ready to really invest your time, money and energy and not sell the idea that this is the next big side business in India,” he concluded.
In response to the video, the user wrote in the comments: “I agree with you! I’ve been an Airbnb employee for over 5 years! All the Instagram buzz is bullshit!”
Another added: “I agree! It’s sad how many young people fall into this trap. It takes at least 2 years to reach marketing level, by which time you’ll be paying rent dollars.”
Someone else also commented: “Breakthrough business in 1 year. Seems like the best business idea compared to others.”
Disclaimer: This article is based on social media generated content and is for informational and educational purposes only. Live Mint could not independently verify its claims and does not endorse them.
