I recently left my corporate desk job to be a full-time blogger.
I’m doing what I love, but this was a big life change for our little family. The career change slashed my income by 85 percent.
As we wrestled with this decision, it was important to us to make sure we didn’t sacrifice the small things we enjoy as a family. Ordering pizza for dinner once in a while. Buying Sugar Pie Honey Bunch on iTunes for our 18-month-old to get her dance fix. Filling the neighborhood pool with Jello. (Just kidding, that totally wasn’t us.)
And going on family vacations.
That’s a big difference – 99 cents for a new song versus thousands of dollars to take a family of four on vacation.
But we have figured out a way to get FREE family vacations. Every single time.
This Might Sound Weird
What’s our secret?
We rent out our house. To strangers.
This isn’t a second rental property. This is our one and only family home.
When we get a rental, we pack up the family (including all five cats) and check into a nearby hotel for a few nights.
So far this year, we’ve rented our house six times, with two more stays scheduled before the end of the year.
And it’s because of this that we’re taking a family vacation to The Wizarding World of Harry Potter in a couple months – without spending a DIME from our savings. No credit cards either.
Could we save that money and apply it to our mortgage or car loans to get ahead? Yes, we certainly could. But travel is important to us as a family, so we’ve chosen to make that a priority even in this challenging financial time for us. And this trip will be completely free, thanks to our home rentals.
The Secret of How This Works
We don’t make a huge profit from renting our house out, but here’s the secret to using this trick to pay for all your family vacations, free and clear, and even have a little spending money left over.
- List your house on Airbnb. You have other options for getting your listing out there, but as an Airbnb host, you are protected up to $1,000,000. They handle the money, verify the personal ID of guests and hosts, and do lots of other important stuff you can learn about here. (By the way, if you use my link, you’ll get $25 credit towards your first stay at an Airbnb property.)
- Secure your first reservation. Do a little dance because the magic is about to happen.
- During the rental, find a place to stay in town. We use hotels.com to book our room at a clean and comfortable but affordable hotel. For example, if we were renting our house for $250 a night, we would try to find a hotel for $100-150 a night. So for a 3-night weekend stay, you could make $450 profit. That’s not a huge amount, but that’s why it’s important to use hotels.com to book your room. Every 10 nights you stay through hotels.com, you get a free night. You will rack these up over a few rentals and have 2-3 free nights for your own family by the end of the year.
- When you pay for your hotel stay during the rental, use a credit card that will earn miles for your airline of choice. Immediately after you receive the rental payment, pay off the amount of your hotel stay on the credit card. Racking up credit card debt is NOT part of this plan! If you sign up for the Southwest Rapid Rewards card, you’ll get enough bonus points for two round-trip flights. Get 50,000 bonus points here.
- Any profit you make, sock it away in savings to cover extra costs during your family vacation. These could come in the form of plane tickets not quite covered by miles, an extra hotel night to round out your free nights, dining out costs, car rental, and so on.
After a few rentals, you’ll have built up enough free hotel nights for your family vacation, plus some airline miles to lessen the blow of flight costs. And more importantly, you’ll have saved up all your profit to cover flights and other vacation costs.
Check out This Example
- 8 times a year, you rent out your home for three nights at $250/night
- 24 nights x $250 = $6000
- 24 nights of your own hotel stays x $125 = $3000
Airbnb also takes a small fee off the reservation total to cover handling the transaction, hosting your listing, and so on. In this example, the total fee for the whole year’s reservations would be $180.
Which makes your profit:
- 2 free hotel nights on hotels.com
- 3000 airline points or miles, which is well on your way to one free leg of a flight – you can ramp up these earnings faster if you use your airline card for paying bills and buying groceries and then pay it off right away
Forget the Free Vacation – Here’s the Best Part
When we pack up and check into a hotel for a few days, we have the BEST time as a family.
Here’s why: We don’t have a home improvement to-do list to work on. We don’t have errands to run to keep the house stocked. We don’t have laundry to do.
We just have each other.
So we play board games, we find fun stuff to do around town, we eat nachos for dinner.
It’s a lot like camping. Except without bug bites and coyotes howling at the wind while you’re trying to sleep.
During one of our recent hotel stays, we taught our 6-year-old Abby how to play Clue. She beat us on her first time. And the second time, too, actually.
Now that’s some quality family time.
Why This Works
If you’re doubting whether anyone would rent your house, think about this.
When you are traveling as a family, which is more appealing to you?
- Staying in a family home with all the creature comforts like a kitchen and a fireplace and a real crib, or
- Paying for two (or more) hotel rooms that may or may not even be next to each other and likely will have just a mini fridge where you’ll have to shove tiny bottles of alcohol out of the way to make room for the baby’s milk
There’s nothing special about our house. It’s in a regular neighborhood and not even close to downtown or any of the popular stuff to do in our city.
But the demand is huge. We end up turning down several reservations a year because we’ve decided we want to rent just 8-10 times a year.
Not only does renting a family home give travelers a better experience, they can also save money. For example, a family traveling with mom, dad, three kids, plus grandma and grandpa would have to get at least two hotel rooms. At $125 a night, that could be the same cost as getting a whole HOUSE to stay in. Then your guests can save money by grocery shopping and making their own meals.
How to Make Even More Money
While you’re renting your home, you could go camping to save up even more money.
Or you can stay with family or friends you’ve been meaning to visit anyway – as long as you can get there without spending too much on travel.
That way, you’re not spending ANY money on hotel stays.
I Bet You Have Some Questions…
I’ll do my best to answer the common questions, but leave a comment if you have more!
Isn’t it weird to have strangers in your home?
It was, at first. But it’s just a house filled with things.
This experience has given us the amazing gift of realizing what’s really important: time with our girls.
But what if someone breaks something?
So far, we haven’t had anything broken. But we break a plate or a cup once every couple months ourselves, so we’re not too worried about replacing a broken dish if that were to happen. The guests leave a security deposit that will cover small issues like that.
And by going through Airbnb, you get the benefit of their million-dollar guarantee.
Did you have to spend money up front to get your house ready?
Yes, but they were projects we needed to do anyway. Our first few home rentals went towards covering those projects instead of family vacations.
What are the hidden costs of renting your house?
You can choose to provide the basics like toilet paper, bed linens, towels, soap, shampoo, and so on. Or you can choose not to.
So it’s up to you how much you cut into your profit with these little extras. In your Airbnb listing, you will just note which amenities you provide so guests know what to expect.
Is it a total pain to clean your house for every rental?
Yes. Yes, it is.
In the last couple months, we have chosen to use part of our profits to fund a house cleaner before each rental visit. This is cutting into our profits, but it’s worth it to us to 1) get a clean house out of the deal, and 2) not be stressing out running around cleaning at the last minute before each rental. There’s no way we’d be able to afford this without our home rental business.
Some municipalities and state governments have regulations related to this type of rental. For example, where we live the city and state both require you to collect taxes on the rental. This doesn’t cut into our profit because the taxes are on top of the rental rate.
Our city also requires us to have a rental license on file with them, and there’s an annual fee for that. It’s a small fee for us, but research first to make sure you know what you’re getting into.
If we can make this work with two adults, two kids, and five cats, you totally can too.
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Would you rent your house out to strangers? Share your thoughts in a comment below!