Practical guide · General Questions · Basic level · 5 min read ·
How to invest in Airbnb projects without buying an apartment?
You can take part in Airbnb-style short-term rental without buying a flat: you put a small amount into a project that already runs tourist apartments and receive a share of its profits, which depend on how many nights are booked and at what rate. A team runs the day to day; your part is understanding the numbers and the risks.
In 30 seconds
- You don't buy a flat: you take part in the company that runs several short-term rental units.
- Results depend on occupancy, average rate and operating costs.
- Check that the project has its tourist-housing permits and read its risks before coming in.
Before you start
Short-term rental is a hospitality business, not a traditional lease: income changes from month to month. If your financial base isn't clear yet, start with how to start in real estate with little money.
- Understand what short-term rental is and how it differs from a yearly lease.
- Accept that there will be good months and slow months: season, events and competition move occupancy.
- Use money you won't need in the next few years: a participation has low liquidity.
Step by step
- 1
Understand how a short-term rental project makes money
Income is the number of booked nights times each night's rate. From that come cleaning, utilities, management, booking platform fees and taxes. What's left is the profit shared among the partners.
- 2
Look for a project that already operates or has a clear date
A project that already hosts guests lets you see real data instead of projections alone. At Circular Urban, Circular Houses in Medellín combines short-term rental apartments with coliving and a commercial space in one building.
- 3
Read the two numbers that matter: occupancy and rate
Occupancy tells you what share of nights was sold. The average daily rate tells you what each night sold for. A good project shows you both separately, month by month.
- 4
Check the permits
To operate legally as tourist lodging in Colombia, a property needs the National Tourism Registry (RNT) and, if it's in a building under propiedad horizontal, building rules that allow that use. Without them, the business carries a basic risk.
- 5
Understand how and when profits are distributed
Each project sets its own policy. At Circular Houses, for example, the distribution policy explains how often profits are shared, the reserves set aside first and the withholding tax.
- 6
Start small and follow the report
Begin with a small amount and read the project report for several months. That way you understand the seasons, the real costs and how the operator responds before deciding whether to add more.
An example
As arithmetic, unrelated to any project: a tourist flat has 30 nights available in a month, 21 are booked and each night sells for 10 units.
| Booked nights | 21 of 30 (70%) |
|---|---|
| Income for the month | 210 |
| Cleaning, utilities and fees | 80 |
| Management and other costs | 40 |
| Profit before tax | 90 |
Profit isn't income: more than half goes on operating costs. So when you compare projects, look at what's left after costs, not just what's billed.
Questions you'll have
Can I invest in Airbnb without buying a flat?
Yes. Instead of buying a unit and running it yourself, you take part in the company that owns a project running several units. With Circular Urban you can do it from about 190,000 pesos (around 50 dollars), depending on the project, and receive a share of the profits the operation produces.
Do I have to look after guests or handle anything?
No. A professional team runs the operation: bookings, check-ins, cleaning, maintenance and guest care. Your role is that of a partner: reading reports, understanding the numbers and taking part in the decisions the agreement gives you.
How much can I receive?
It depends on each month's occupancy, rate and costs, and on how much you put in. No serious project can promise you a figure: projections are non-binding references and results depend on actual performance. What you should find is how profit is calculated and how often it's shared.
What happens in low season?
Occupancy drops while some costs, like building fees, stay the same. So some months bring less profit. Well-run projects keep a reserve to cover those months without stopping the operation. Always ask whether the project has one.
Is short-term rental legal in Colombia?
Yes, when it follows the rules: the property must have an RNT, pay the tourism sector levies and, in a building under propiedad horizontal, have express permission in the building rules. A serious project shows you it complies before you participate.
Why not buy my own flat for Airbnb?
You can, but it takes a large down payment, a mortgage and time to run it or pay someone to. And your whole result depends on a single unit. Participating in a project spreads that risk across several units and lets you start with much less.
Common mistakes
- Myth
A flat on Airbnb always brings in more than a traditional rental.
- In reality
It can bring in more per night, but it also has higher costs and more variation from month to month. What matters is profit after costs, not the nightly rate.
- Myth
If the project has great photos, it will do well.
- In reality
Photos help sell nights, but results depend on location, demand, pricing, permits and costs. Check the reports, not just the photos.
- Myth
Short-term rental in residential buildings is banned.
- In reality
It's allowed when the property has an RNT and the building rules permit it. What's worth checking is that the project meets both conditions.
Your first step
Get to know a short-term rental project that already operates
Open the Circular Houses page, see how short-term rental, coliving and the commercial space fit together, and read its documents calmly. For a checklist of what to look at, use the guide to evaluate a project before participating.
See Circular HousesKeep learning
This content is educational. Every participation carries risks inherent to the project, including the possibility of partial or total loss, and results are subject to each project's actual performance.
