Owning an Airbnb is a great way to make extra income. However, if a real estate investor is able to take it to another level, starting a vacation rental property business can make you truly rich.
There is only one but. In order to make a fortune with vacation homes, the real estate investor must be good at several things. For instance, he/she should know what the most profitable Airbnb locations are. Moreover, being able to answer the question “How much can I charge for rent?”, will allow you to understand if you are going to make a profit or not.
There are many things you need to learn before becoming an Airbnb investor. So, how can you make sure you are doing everything right? The answer is simple: Use a vacation rental income calculator. Today, we will tell you about 5 things you can learn from a vacation rental income calculator in order to succeed. Make yourself comfortable and let’s review one of the greatest real estate investment tools.
#1 Where the Most Profitable Airbnb Locations Are
Finding the right location for your Airbnb rental property is crucial in order to start making money. We all know that the location of the short term rental is of the utmost importance. Thus, you should strive to only choose one of the most profitable Airbnb locations.
The criteria for the best Airbnb locations always stays the same: tourist/ business destination point, good Walk Score, public services (such as transportation), etc. Yet, if you are a beginner Airbnb investor, there is a chance you can make a mistake. So, how can you make sure you choose the right location in order to have a high Airbnb occupancy rate? Easy, the Airbnb investor should use a vacation rental income calculator. It is even better if you use the one Mashvisor offers. This real estate investment tool will present you the best neighborhoods in the city of your choice that have a high Airbnb occupancy rate, rental income, and cash on cash return. Thus, this vacation rental income calculator saves you tons of work and presents you with ready-to-use data.
#2 How to Find the Best Vacation Rental Property
Once you have researched the most profitable Airbnb locations, it is time to find the vacation rental property of your dreams. You can complete this step with ease by using the vacation rental income calculator.
When it comes to selecting the future vacation rental property, the Airbnb investor should pay attention to many different types of data. Such are, for example, the Airbnb occupancy rate, return on investment, etc. The Airbnb investor should also carefully analyze rental comps in order to make a successful real estate investment decision. As you can see, investing in a randomly selected property is a huge mistake.
Analyzing the rental comps and selecting the best Airbnb rental property may take time and can be difficult to learn to do manually. That is why we advise you to use a vacation rental income calculator instead. You will save time, energy, and will not miss the opportunity to invest in the best second homes on the market.
#3 How to Invest in Real Estate Efficiently
Another thing you can learn from the vacation rental income calculator is how to operate your real estate investing business efficiently. What is meant by efficiently? Well, all the needed information can be stored online and/or on your computer, tablet, or even on your phone. Therefore, whenever you need to find certain data about a particular vacation rental property, you can do it within seconds without the need of carrying tons of paperwork. Additionally, by using the tool, you can perform analysis in a matter of seconds without wasting precious time on collecting and analyzing data.
#4 How to Complete Mistake-Free Analyses
In order to invest in the best vacation rental property, the Airbnb investor should conduct a couple of analyses to make sure that his/her decision will lead to a profitable outcome. Most of the time, the investor will need to deal with various real estate metrics. Unfortunately, making mistakes in real estate market analysis and investment property analysis is very easy due to the amount of data that needs to be examined.
The vacation rental income calculator eliminates the risk of making such miscalculations and mistakes. Additionally, the tool can assess much bigger datasets as it has access to tons of useful information. So, instead of spending weeks on collecting and analyzing data only to end up with erroneous results, you can just use the vacation rental income calculator.
#5 What Your Potential Profit Will Look Like
How much profit should I make on my rental property? How much can I charge for rent? These are some of the most commonly asked questions among Airbnb investors. The reason for this is pretty simple- if you charge your tenants too low, you will have a high Airbnb occupancy rate. But, you will be missing out on possible profit. However, if you charge too high, the demand will be low and once again the Airbnb investor will miss the possible profit.
That is why before setting a rental rate for your second home, make sure you do your homework well. Use Mashvisor’s vacation rental income calculator as this real estate investment tool can quickly estimate the optimal rental rate you can charge your tenants. You save time, nerves and are able to focus on other aspects that have an influence on the success of your vacation rental property business.
Learn More: How Much Should I Charge for Rent?
Every Airbnb investor has his/her own way of operating in this industry. However, in order to be on top of the game, you should constantly improve yourself and the way you operate. Working with a vacation rental income calculator is the best way to keep learning how to invest in Airbnb the right way. Such a real estate investment tool will help you:
- Select the most profitable Airbnb locations for your future Airbnb rental property
- Find the best vacation homes according to various real estate metrics in just a matter of minutes
Our advice is to try this tool yourself. To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.