To get the best value for your money, there are a few things you should know before purchasing your first Airbnb investment home. We put together a list of what we think you should keep in your mind before getting your feet wet.
1. The Importance of Location When Purchasing an Airbnb Property
With Airbnb, location is crucial. Renting out your house or apartment to travelers looking for a place to stay in your city or town is the whole premise of Airbnb. As a result, before making a purchase, it is crucial to think about the location of your possible rental property.
Some considerations are as follows:
The location of your rental property in relation to well-known landmarks and tourist attractions, such as:
- Neighborhood’s safety
- Noise level
- Available public transit
- Type of shops (cafes, restaurants, etc)
- Ease to airport
2. Investigating Local Airbnb Markets Before Buying
After you have identified a few suitable residences in desirable areas, it is time to investigate the neighborhood Airbnb market. This will enable you to estimate the sort of rental revenue your home will provide.
Among the topics to think about are:
- The typical nightly price for nearby residences with comparable amenities
- The typical occupancy rate for local Airbnb units
- The average duration of stay for Airbnb visitors in the region
3. Take into account the expenses of owning a rental property.
The expenses of having a rental property should be taken into account when buying a home to advertise on Airbnb. These expenses may comprise:
- The payments on the mortgage
- The price of the furniture and decorations
- The price of home insurance
- The price of maintenance and repairs
- how much municipal taxes and fees will cost
- The price of renting out your house
You will be better able to decide whether or not getting a house for Airbnb is the appropriate move for you if you bear these items in mind.
3 Drawbacks to Owning an Airbnb Property
1. You could be in charge of noisy visitors
If you decide to rent your home on Airbnb, you can be held accountable for the behavior of your visitors. This implies that you can be held accountable if your visitors cause damage to your property during a party.
2. You may need to deal with challenging tenants
The possibility of dealing with troublesome renters is yet another drawback of owning an Airbnb home. While the majority of Airbnb users are responsible and courteous, there is always a chance that a problematic renter would break the regulations.
3. You May Run Into Zoning Problems
Lastly, if you own an Airbnb home, you can run into zoning concerns. Short-term rental of real estate is prohibited in several places. This implies that if you are discovered renting out your house on Airbnb, you might face fines or possibly eviction.
3 Benefits of Owning an Airbnb Property
1. You Might Earn a Fortune
You may earn a lot of money if you put your house up for rent on Airbnb. In the US, an average Airbnb host makes $924 a month. This implies that you may make more than $18,000 a year by listing your house for only 20 days a month.
2. You may make use of your home as a getaway
Owning an Airbnb property has the added benefit of allowing you to utilize it as a holiday home. This implies that you may take a vacation and remain in your own rental home.
3. You May Interact with Fascinating Individuals from Across the Globe
Lastly, if you own an Airbnb home, you could encounter intriguing individuals from all over the globe. This is so because most Airbnb visitors are wanderers who like meeting new people.
Are investments in Airbnb still worthwhile?
You may be asking whether Airbnb is still a good investment now that you are aware of some additional factors to take into account before making a purchase of an Airbnb investment property. Unanimously, the answer to this question is “yes.” Travelers still find Airbnb to be a very useful website, and its use is increasing yearly. It is expected that Airbnb will expand much more as the sharing economy gains popularity.
Locate the Ideal Property
Now that you are fully informed about investing in Airbnb, it is time to begin looking for the ideal house. To get started, have a look at our list of available properties. We would be pleased to assist you in finding an Airbnb investment home if you are interested in finding one. Contact us today to speak with a real estate agent specializing in Airbnb properties.