How to make your place help you earn extra money

Chris Fan
5 min readDec 15, 2020

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What we have here

Introduction

Is your location suitable to host on Airbnb?

What type of property you can earn from it?

What other factors may help you make a decision on the price for your place?

Conclusion

Introduction

Taipei is the capital of Taiwan. With Taipei 101, surrounding mountains, and full of entertainment facilities, Taipei has the ability to attract more tourists compared to other cities in Taiwan. Plus, because of the period of coronavirus pandemic, people are not allowed to go abroad for traveling. Therefore, the number of tourists in Taipei during holidays reaches an all-time high. So, if you lived in Taipei and wanted to make extra money, this article would be handy for you! We use the data from Inside Airbnb to help you better understand what you should know before becoming a host!

Is your location suitable to host on Airbnb?

Location is the main factor to affect the price of your place. Let’s take a look at where other host’s places are located.

According to the figure above, Wanhua has the most number of people to host on Airbnb because it is the oldest district with more relatively old buildings in Taipei. So, people are willing to renovate their places to do other businesses. Also, it has lots of traditional street foods with Bib Gourmands awarded nearby. That why it attracts more visitors to stop by. Accordingly, Wanhua is the best region to host on Airbnb. If your place is here, there is no doubt to run your business right away!

Let’s have a look at the average price of each district as well.

The average price in Beitou is much higher than in other districts. Why? This is because Beitou is a place that provides hot spring services. Plus, the location of Beitou is a bit far from the downtown area of Taipei so the number of rooms hosting on Airbnb is fewer. According to the law of supply and demand, that’s why the average price in Beitou is higher (almost reaches NT5000)!

What type of property you can earn from it?

The type of property is one of the main factors to influence the price of your place. However, Taipei is a small city so most places hosting on Airbnb are kinds of rooms so we prefer to use room type from the data instead of property type for further analysis.

It is not surprising that a hotel room is the most expensive type because it has better human services and provides better facilities in the hotel. On the other hand, a shared room is the type that has to share space with other people so it comes to the lowest price. Therefore, it’s unlikely to make your room become a hotel room. It’s easier to make your room be a type of private room. After all, you may want to set the price for it like an entire apartment as they have a similar price (NT2500) in Taipei.

Also, let’s look into what types of rooms with numbers distribute to each of the districts?

According to the figure above, no matter where you live, an entire apartment or a private room is the type of rooms people prefer to host on Airbnb. That is to say, people in Taipei prefer to have a private space. Hence, your room would be booked soon, if you made it be an entire apartment or a private room.

What other factors may help you make a decision on the price for your place?

We not only include other factors like bedrooms, bathrooms, and accommodation, but also puts all the other amenities like WiFi, HDTV, parking spaces, and so on from Inside Airbnb dataset into the analysis. Let’s see the result from the model with the top 3 positive coefficients below:

Bedrooms, bathrooms, and a paid parking garage on-premises are the most important factors to higher the price of your place.

Conclusion

  1. Is your location suitable to host on Airbnb?

Wanhua is the best district to host on Airbnb, if your house is here, congratulation!

2. What type of property you can earn from it?

Make your place be a private room with a bathroom. You may earn NT2500 from it!

3. What other factors may help you make a decision on the price for your place?

Parking spaces will be great for your guests!

Take all considerations above, the best way to make a better price of your place is to divide an entire apartment into several private bedrooms with their own bathrooms. Also, if you had extra space for people to park their cars, they are more than happy to book your place first. After all, Taipei is a small city with narrow streets, it’s really hard for visitors to find a parking space. Even though there are some parking lots around the host, it’s extremely expensive to put their cars there overnight. That is why a paid parking garage on-premises would be one of the main factors to attract people to stop by.

Do you want to predict the price of your place?

The model we trained can help answer the questions you have in mind, please check out my Github here.

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