Does renting your room on Airbnb really equal a 14% raise?

Airbnb has commissioned a new study that says renting your place on Airbnb is like getting a 14% raise. This sounds like a fantastic windfall for those looking to make easy money while chilling on the beach — but can the Airbnb study be trusted? It's important to consider all elements of the conversation, with a business that claims $1 billion in economic impact in New York City while also assuring San Francisco that it's not cutting into rental stock. Let's break it down.

Stagnating wages for middle class

Airbnb believes that its platform provides a clear means for the middle class to stay afloat. The additional income provided by renting a spare room or apartment makes up for stagnated wages that most workers have experienced over the past 15 years. The additional income brought in by welcoming guests rebalances an imbalanced equation, says the report:

Indeed, the fall in annual real household income since 2001 is more than completely overcome by the amount of supplementary income made by the typical Airbnb host with just a single property.

While it's true that making more money is one way to combat wage stagnation, it's important to note that you could also just work more or get another job to supplement income. Effectively, becoming a host is like taking on another job, so it's not like this income doesn't come with work attached.

Average net income: $7,530

Gene Sperling, the former advisor to President Obama who conducted the research (paid for by Airbnb), found that the average net income from hosting on Airbnb was $7,530. This means that you would receive up to a 14% raise if you're earning a median income. The report also broke down the types of listings as follows in the cities where most hosts are either earning below median income or at $100k or less. The average age of host also reveals that Millennials are not always the only people participating in the sharing economy:

However, it must be noted that this data goes against what other players have found. For example, Everbooked found that 58.8% of hosts in San Francisco were renting out a whole home or apartment. This means that either the host leaves while the guest is there or that this home is actually not a primary residence.

What to expect for your own income

So what does this mean for those considering renting out rooms and apartments while traveling? The reality is that there's a significant amount of money that can be earned from renting as a supplemental income stream. But it's not without hassle: there's wear-and-tear on the space and the need for someone to book and greet guests, clean the space and maintain it for the next guest. Remote management fees can go up to 30%, depending on the level of service, which can substantially eat into your profits. There's also the long-term impact of a series of transient guests on your neighbors.

All of these things must be considered carefully before deciding to make the switch to being a de-facto innkeeper. If it goes well, there's nothing like that mostly-passive income from hitting the bank account every few days. If it goes poorly, it can a very stressful experience. So think carefully — and then enjoy the lifestyle.