SHORT-TERM rentals like Airbnb have become a popular option for overseas Filipinos wanting to generate income from their Philippine properties. The idea of earning in dollars or pesos while living abroad is tempting — but it’s important to understand both the opportunities and challenges that come with it.
The upside: Airbnb can generate more income than traditional long-term leasing — especially in hotspots like Makati, BGC, Ortigas, and Cebu. Tourists, balikbayans, and business travelers often prefer short- term rentals over hotels for flexibility, lower costs, and homelike amenities. You also retain control over when the property is rented — handy if you visit the Philippines periodically.
Costs to consider: However, Airbnb is far from passive income. You’ll need a property manager or team to handle bookings, check-ins/outs, cleaning, and maintenance. This can cost 20 to 30% of your revenue. Plus, not all buildings allow short-term rentals. Condominium associations may prohibit or restrict Airbnb use. Always check building policies before investing.
Hidden expenses: There are also furnishing costs, utility bills, Wi-Fi, repairs, and platform service fees. Your property must be consistently cleaned and well-reviewed to stay competitive. You might also face high vacancy rates during off-seasons.
Local laws and taxes: Philippine local governments are starting to regulate short-term rentals. Some require business permits and may impose taxes. Ignoring these can lead to fines or closure.
Real-life tip: Some overseas property owners hire full-time caretakers or work with professional Airbnb management services that handle everything from pricing strategy to maintenance. These services add cost but can greatly reduce the stress of managing from abroad. It’s also important to factor in the competitiveness of your area — too many similar listings can push rates down.
Verdict: Airbnb works best for those who:
• Have a trusted local team
• Invest in high-demand areas
• Are ready for ongoing operational expenses
• Stay on top of guest experience and property reviews.
If you plan well, Airbnb can be a viable income source. But it’s not a hands-off investment — it needs effort, legal compliance, and strategic planning. For overseas Filipinos seeking extra income or a future vacation home that pays for itself, it can be worth it — with the right preparation. Contact us for property management today.
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The opinions, beliefs and viewpoints expressed by the author do not necessarily reflect the opinions, beliefs and viewpoints of Asian Journal, its management, editorial board and staff.
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At SAB Realty, we are committed to providing professional, personalized guidance to help you make informed decisions — whether you’re purchasing your dream home, expanding your investment portfolio, or planning for a secure retirement. Sharon Ann Bathan-San Pedro, a licensed real estate broker in the Philippines for over a decade and a proud member of the National Association of Realtors (NAR) in the United States, offers her expertise to both local and overseas clients. For inquiries, consultations, or assistance with buying or selling property, feel free to reach out – Email: [email protected]; PH contact (Viber/WhatsApp): +63 917-823-7796; USA contact (Viber): +1 (951) 367-6840.
