30% Profit, Break-Even In 1 Year: Is Leasing Property For Airbnb India's Next Big Side Hustle? Hyderabad Man Reveals

(MENAFN- Live Mint) In today's world, everyone talks about the importance of a side hustle. One such popular idea on the internet is to run an Airbnb on a lease model. It suggests that anyone can run a business with Airbnb in India by renting or leasing a property from an owner for a fixed monthly amount and then listing and operating it on the Airbnb platform, earning the difference between the rental income and the costs. But is it even that easy or practical in India?

Running Airbnb on lease-model in India

Answering the question, a man from Hyderabad shared his experience. Abhishek Mourya who claims to be an Airbnb host and a consultant at a 9-to-5, warned against the lease model.

Taking to Instagram, Mourya shared in a now-viral video,“If anyone on the Internet is trying to convince you that you can lease out a bunch of properties and continue an Airbnb business as a side hustle and make a s**t ton of money on the side. They are lying to you. Trust me, I have been in the business for the past three years. I know this industry inside and out. I have only been running this business on my own properties. I have not leased out any if them.”

Also Read | More Airbnb homes, less money? Why Indian hosts are losing their rental premium Initial set up cost vs break-even vs profit

The user continued and explained that he could continue the Airbnb hosting as he was the owner of the properties. He explained,“These are owned by my father. He tends to own a bunch of properties, and I get to use them, furnish them with my own money and run them as an Airbnb business. The math only makes sense when you run it only with this equation because here I am furnishing my own home. So I am not chasing a break-even figure; this is what I invested initially to furnish this house. When will I have my break-even? When will I get profit? I am not paying a fixed rental to anyone because they are my homes. So any money I make in terms of my revenue, most of it is my profit, minus the maid, general consumables and maintenance expenses.”

Also Read | Airbnb's rental math is changing for Indian homeowners 20-30% profit margin

Mourya said that once you lease a property, you incur high costs. After considering maintenance and other expenses, the profit margin will typically stand at 20-30%. "Depending on the size of the apartment you lease," he added.

He said that breaking even on the furnishing cost will take a minimum of around one year. "After that you will start making profit," he said.

'Not a side hustle'

"So Airbnb is not a side hustle in India. It is a full-blown hospitality business. Get into it only if you are ready to actually invest your time, money and energy and don't sell out on this idea that this is the next big side hustle thing in India," he concluded.

Reacting to the video, a user wrote in the comments,“Agree with you! I am employee of Airbnb more than 5 years! All Instagram side hustle are crap!”

Another added,“Agreeeeed! It's sad how many youngsters fall in this trap. It takes atleast 2 years to reach marketing level by that time you've already paid dollars in rent.”

Someone else also commented,“A business with break even at 1 year. Seems like a best business idea as compared to others.”

Disclaimer: This article is based on social media generated content and is intended only for informational and educational purposes. Live Mint couldn't independently verify its claim and doesn't endorse them.

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