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In 2024, Indian women hosts on Airbnb earned ₹260 crore, with 56% getting 5-star reviews. Influencer Deepika Shrivastava earned ₹91 lakh in two years. Key factors: location, property type, pricing.
Renting out properties on platforms like Airbnb has become a viable income source for many in India.
Renting out properties on platforms like Airbnb has become a viable income source for many in India. In 2024, Indian women hosts, comprising nearly 30% of Airbnb hosts in the country, collectively earned approximately ₹260 crore, with over 56% receiving 5-star reviews from guests.
Influencer Deepika Shrivastava, who has nearly 40,000 followers on Instagram, says she left her job two years ago and shifted to Goa to start Airbnb business there.
“In first two years of business, I earned a revenue of Rs 91 lakh between March 2023 and March 2025,” she said, adding that it all happened despite her partying, holidayings, and travelling as usual.
How Did She Start Her Business?
1. She leased a 2 BHK apartment from its owner for long term.
2. Listed it on platforms like booking.com and AirBnB for travellers to booking for a daily rentals.
In the first year, she earned a reevenue of Rs 36 lakh from three Airbnbs. However, this year, she is closing a revenue of Rs 55 from five properties.
What’s The Profitability?
Profitability Factors:
•Location: Properties in tourist hotspots or business hubs tend to attract more guests.
•Property Type and Amenities: Unique stays with modern amenities often command higher rates.
•Pricing Strategy: Competitive pricing aligned with market demand can enhance occupancy rates.
What’s The Trend? Industry Players Speak
Ravindra Gandhi, managing director of Tirasya Estates, said, “Short-term rentals are now a profitable investment option, allowing property owners to receive regular returns while capitalizing on the surging demand for experiential stays. Locations like South Goa’s Majorda and Benaulim, with their peaceful beaches and high-end charm, are seeing increased demand from discerning travelers.”
We notice this trend and are coming up with ultra-luxury villas that combine privacy with high rental yield potential, making them the perfect investment option for those wanting to catch the booming hospitality-fueled real estate wave, he said.
Ankit Kansal, MD of SKYE, said, “The concept of leasing second homes/ villas/bungalows is becoming a major source of recurrent rental income for many property owners. A sizable portion of leisure, business and solo travellers now don’t prefer mainstay hotels and resorts. Rather they are getting intrigued by the concept of rental villas & private homestays with limited yet more enriching facilities.”
He added private villas offer an exclusive, tailor made and immersive travel experience, which is making it a big hit amongst new breed of travellers. The spurt in remote working and digital nomad culture is further helping the segment, as it is directly fuelling growth in the long stay rental market. Private villas are more apt for long rentals compared to regular hotels. Meanwhile, with emergence of players such as Air BNB, Rental Gram, Sohono Stays, Saffron Stays, etc. the overall segment is witnessing an unprecedented amount of organization. These platforms are organizing the market and offering a unified platform to property owners.
Tax Implications:
Income from short-term rentals is taxable under the Income Tax Act of 1961. The classification depends on the nature of the rental activity:
•Income from House Property: Occasional rentals of a residential property fall under this category.
•Income from Business & Profession: Operating multiple properties or running the rental like a business may classify the income accordingly.
Tax Deductions:
•Standard Deduction: A 30% deduction on Net Annual Value (NAV) for maintenance and repairs under Section 24(a).
•Home Loan Interest: Deductions up to ₹2 lakh per year on interest paid, under Section 24(b).
•Depreciation and Repairs: Depreciation on furniture and appliances can be claimed if the income is classified as business income.
•Utilities and Hosting Costs: Expenses like electricity, Wi-Fi, and cleaning services are deductible when operating as a business.
Top Indian Locations for Short-Term Rentals:
•Goa: A perennial favorite among travelers, offering high occupancy rates.
•Delhi: The capital city attracts both tourists and business travelers.
•Bengaluru: A major tech hub with a steady influx of visitors.
•Pune: Known for its educational institutions and growing IT sector.
•Jaipur: A cultural hotspot drawing numerous tourists annually.
Emerging destinations like Varanasi, Ahmedabad, and Mathura have also seen significant increases in bookings, indicating potential for profitable short-term rentals.
Before investing, it’s crucial to conduct thorough market research, understand local regulations, and assess the demand in your chosen location to maximise profitability.