How to Make Money from a Spare Room on Airbnb in Auckland

How to Make Money from a Spare Room on Airbnb in Auckland
Airbnb Advice
August 5, 2019

Supplementing your income through Airbnb hosting doesn’t mean you have to rent out an entire property. In fact, private rooms are extremely popular amongst travellers for their affordability and the chance to connect with locals on a personal level. Of Auckland’s available accommodation, 41% of the listings on the platform are for private rooms, presenting an opportunity for anyone that has a spare room in their home. 

For homeowners that are seeking ways to reduce mortgage costs, letting out a spare room on Airbnb can help make it easier to meet repayments and get ahead on home loans faster. In contrast to traditional tenancies, wherein you bring a long-term flatmate into your home, Airbnb guests come with a unique array of benefits and substantially more freedom. Advertising your extra bedroom on Airbnb can help you reduce often crippling costs without the restrictions imposed by long-term agreements. With average occupancy rates sitting at around 55% for private rooms in Auckland, and the nightly rate reaching upwards of $70 in some areas, hosting for a few nights every week offers the potential for a lucrative part-time effort. 

Getting Started

The process of starting to rent out a private room on Airbnb is similar to letting out an entire property. Your first steps will include creating a detailed profile that summarises what’s on offer, a short bio about yourself and a photo. Following this, you’ll need to capture some high-quality shots of your home, with a particular focus on the room in question. Highlight all attractive amenities and selling points, being careful to showcase a clean and tidy environment that all guests look for. Finally, you’ll need to complete your listing with information and verify yourself by uploading official forms of identification such as a passport and driver’s license.

It’s important to include as much detail in your listing as possible. This is where people will assess whether they want to book a stay with you, so making sure to cover as many points as possible is helpful. Some questions to cover in your listing include:

  • How many people you can accommodate
  • The available amenities
  • Nearby attractions
  • Property rules (pets, smoking, etc.)

As you are only renting out a private room, it’s important to make this crystal clear. Make sure you have selected the correct category and outline it again in your profile. It is also advisable to inform potential guests of how many people reside on the property.

Auckland Airbnb Hosting Regulations

In New Zealand, renting out a room on Airbnb is considered subletting. For this reason, if you do not own the property, you will need to have your landlords permission before getting started. Going ahead with Airbnb without an agreement with your landlord in place can and has caused significant disputes with the tenancy tribunal. It’s never a good idea to start hosting without consulting the property owner.

If you have permission from your landlord or are the property owner, you will also need to understand Auckland Council’s tax rates for Airbnb hosts. Typically, renting out a single room means that these charges won’t affect you, however, it’s still important to be aware of these fees to avoid any potential issues down the line should things change.

Becoming a Successful Airbnb Host

The amount of money you can make on Airbnb will depend on your hosting skills, the reviews that follow and your ability to capitalise on that. Obviously, guests prefer to stay with hosts that have high-ratings and are recommended by other travellers, particularly if you are going to be in the same home as them. High-standards should always be held in cleanliness and guest interactions to generate the best reviews possible. Achieving SuperHost status on Airbnb (80% or more reviews received are 5 stars) will help keep the highest nightly prices possible and the most occupancy.

Where is the Best Area for Airbnb Hosting?

The location of your home will have a large impact on the amount you’re able to charge per night. With the highest density of private room listings in the CBD and surrounding central suburbs, including North Shore, this is where the most demand and the most competition is. Aside from this, areas like Waiheke Island and other holidays destinations can secure high night-rates too. Every area will have a certain demographic that is appeals to most, aiming your listing at these groups will help you get the best results as a host. 

Average Nightly-Rates for High Performing Areas Include:

1. Waiheke: $71

2. Saint Johns: $60

3. Parnell: $60

4. Kohimarama: $60

5. Saint Heliers: $57

6. Mission Bay: $57

7. Orakei: $52

8. Ponsonby: $51

9. Kingsland: $51

10. Epsom: $49

11. Downtown Auckland: $48

12. Takapuna: $48

13. Mount Eden: $47

14. Remuera: $45

15. Glendowie: $45

16. Greenlane: $44

17. Point Chevalier: $41

18. Onehunga/Mount Wellington: $40

19. Howick: $39

20. Ellerslie: $39

21. Manurewa: $37

22. Mangere/Otahuhu: $37

23. Castor Bay: $37

24. Mount Albert: $36

25. Otara: $35

26. Glenfield: $33

27. Mount Roskill: $32

28. Henderson/Massey: $31

Extra Rooms are a Massive Opportunity to Profit

Renting out private rooms on Airbnb is the ideal solution for anyone with extra space they aren’t using. For new homeowners, parents whose children have left home, renters with landlord permission and more, this platform offers an exciting opportunity to capitalise on Auckland’s thriving tourism industry. 

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