In short, Airbnb works like this. First, the owners or tenants of homes register with Airbnb and list their homes online. This will usually take place in an application process that requires you to list a reasonable amount of information, such as the price of your home and the number of bedrooms, bathrooms, and living areas available. From the information given, Airbnb will run a credit check on you and use that information to assign you a value (the ‘price’) for your listing. This value is the ‘guaranteed rent’ you will receive for a week if you have an available room or house. When someone makes a booking through Airbnb, the landlord will receive payment by PayPal once the customer has checked out. There are some significant downsides to this system as well.
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