Airbnb vs. traditional renting: How listing your property can benefit both landlords and tenants

Homeowners prefer to list their apartments on Airbnb over traditional renting due to the platform's ability to provide higher monthly income without upfront payments.

Airbnb property listings

For many years, homeowners have been renting their houses or a part of their houses to travellers via online platforms like Airbnb (Air Bed and Breakfast). They prefer an Airbnb listing over renting because it generates a higher monthly income than rental yields. Furthermore, Airbnb provides numerous tax advantages and incentives for travellers seeking extended stays.


  • Listing apartments on Airbnb boosts business opportunities and yields higher income than traditional rentals.

  • Homeowners can use their listed property for personal holidays, which might not be possible in long-term rentals. 

  • Airbnb-listed apartments or villas are the best options for travellers seeking affordable pricing and services compared to hotels.

What is Airbnb?

Airbnb, short for "Air Bed & Breakfast," has transformed lodging options, providing unique alternatives to conventional hotels. Homeowners, whether individuals or investors, can use Airbnb to list their properties for short-term rentals, potentially benefiting hosts and tenants.

Why is listing apartments on Airbnb better than renting?

If you own an empty apartment or villa, consider listing it on Airbnb. Numerous homeowners in places like Ooty, Dehradun, and Goa invest in real estate and list their properties on Airbnb. This choice provides substantial monthly income and the flexibility to maintain your holiday home while travelling. Additionally, rental incomes are significantly less than Airbnb's and require upfront capital. Hence, individuals who can't arrange immediate capital for property purchases often favour Airbnb listings to avoid complications.

Also Read: Earn high returns with these short-term investment options.

Why is Airbnb more flexible than long-term rentals?

Airbnb listings help homeowners use their property for personal reasons when needed. One does not get this option when renting a house for the long term. This makes Airbnb listings more flexible for homeowners than long-term rentals, as they get more control over their houses. 

Moreover, Airbnb's incomes are eligible for a tax deduction, as they are treated as rental income. For tenants, Airbnb offers tax deduction at source (TDS), which gets deducted before paying the host the final amount for your stay. 

Also Read: Learn about the tax implications of selling your inherited property

The bottom line

If you list your apartment on Airbnb to foster business opportunities, it is important to know that the platform charges hosts a 3% service fee. The final amount is at least 14% higher than the listing price for guests or tenants. Airbnb charges platform fees, cleaning fees (if any), and taxes. Additionally, you can consider hiring a full-time caretaker if you have more than two properties to spread the cost equally. Despite the additional fees, Airbnb remains 10 to 30% more cost-effective for tenants when compared to hotels.

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 Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.


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