I Rent Out a Basement on Airbnb: Here's How Much Profit I Actually Bring In
Turning a spare room or space into an Airbnb sounds like easy money — furnish it, list it and start collecting payments. However, hosting is messier than you think.
Stephan Desrochers, founder of VanToVault, has had a furnished basement unit in his Twin Cities duplex for years, and his numbers explain why passive income is often the wrong term for short-term rentals.
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Setting Up the Unit Cost About $20K
Desrochers didn’t just furnish the basement and upload photos to Airbnb. The unit needed plumbing, drywall, paint and appliances, some of which required permits.
“I'd estimate the setup costs probably ran around $20,000," he said.
That up-front cost is easy to overlook when estimating Airbnb profitability. And for someone starting from scratch, you need to account for renovations (if any), furniture, linens, kitchen supplies and other essentials before earning your first dollar.
Ongoing Operating Expenses
Once the unit was live, the ongoing Airbnb costs were less but steady. This included cleaning, replenishment of supplies, utilities and replacing items that had become worn or damaged, like bed sheets and pillows.
Desrochers estimates these ongoing costs at about $1,000 a year, a small amount compared to startup costs, but they reduce monthly revenue.
Revenue Ranges From $10K to $17K a Year
Desrochers uses smart pricing, so his nightly rate changes with seasonality and demand. That means income can vary greatly from month to month.
“In my good months, I’ll pull in $1,500 to $2,500,” he said. “Slow months can actually drop to $0. Annually, $10,000 to $17,000 depending on the year.”
Subtracting his estimated $1,000 in annual Airbnb operating expenses leaves somewhere around $9,000 to $16,000.
Hosting Isn’t Necessarily Passive Income
Desrochers started only on Airbnb and became a superhost, but the money meant work.
“I did a lot of the cleaning and turnover myself,” he said. He also had to maintain the decor, deep clean the unit from time to time, and handle customer service.
Doing these jobs yourself lowers your operating costs, but your financial return doesn’t reflect the value of your time. Hiring cleaners or property managers would make the business more passive, though profits would be reduced.
He Eventually Switched to Longer-Term Stays
Desrochers ran the unit as an Airbnb for about three years, earning superhost status through consistent positive reviews.
After a guest dispute over a false damage claim (which he won on documentation), Airbnb refused to remove the retaliatory review that followed. That experience, along with increasing fees, prompted him to shift most of the calendar to Furnished Finder for stays of a month or more instead.
"It is less upside, but less turnover, less at the mercy of Airbnb's support," Desrochers said, adding that mid-term rentals now work better for his situation.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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