Real estate investing can be an extremely profitable business if tackled with care. Maybe, the most popular, easily accessible, yet very rewarding real estate rental strategy is Airbnb rentals. When it comes to financing and managing an Airbnb rental property, one of the key factors for success is the Airbnb occupancy rate.
This is due to the fact that short-term rentals are rented for small periods of time; therefore, the Airbnb host needs to constantly find new tenants. The Airbnb rental income, and thus the profit, you make strictly depends on the Airbnb occupancy rate. That is why we will show you five ways to boost your Airbnb occupancy rate. If you are interested in learning more, keep on reading.
You can also learn more about the topic by reading “What Kind of Airbnb Occupancy Rate Can You Expect?”.
#1 Before You Buy an Investment Property
Thinking how to boost your Airbnb occupancy rate starts before you buy an investment property. It is worth mentioning that even though the most popular Airbnb destinations attract many visitors, they are not always the most profitable ones.
Moreover, there are many tourists who try to avoid the most popular Airbnb destinations and prefer less crowded vacation spots. It is advisable to use a tool, such as Mashvisor’s heatmap, to compare different locations and choose the best one. Mashvisor’s heatmap will show you the performance of different areas in numbers: the higher the number, the better the performance.
Additionally, the tool will color in green the best results, in orange – the moderate ones and in red – the areas with lower than the average performance. This will give you the opportunity to understand the map in one glance.
Moreover, Mashvisor’s heatmap will reveal results per neighborhood. This is extremely helpful in choosing the best place for your Airbnb rental property. Please note that the best area to buy an investment property for this real estate rental strategy is a quiet and safe neighborhood connected to public transportation.
Last but not least, using a heatmap will provide you with information regarding the Airbnb cash on cash return, which might be helpful in finding the best investment. You can also use Mashvisor’s Airbnb profitability calculator to find the greatest properties.
If you want to learn more about the tool, be sure to read “The Airbnb Profitability Calculator: The Best Friend of Short-Term Rentals Investor”.
#2 The Airbnb Rental Property
Let’s focus on the property itself. Imagine that you have used Mashvisor’s heatmap as well as Mashvisor’s Airbnb profitability calculator and you have found the perfect property. When it comes to this particular real estate rental strategy, a good Airbnb cash on cash return is simply not enough to ensure high profit along with high Airbnb occupancy rate.
To boost your Airbnb occupancy rate, you need to take into consideration several things. First of all, make sure that you furnish the place nicely. If you want to be successful in short-term rental real estate investing, you need to create a home-like, cozy feeling at your rental.
Moreover, equip the place with all the necessities. Many people book an Airbnb over a hotel room simply because they feel more comfortable at such an environment. Install a washer and dryer, a coffee machine, a stove, a microwave, a fridge… everything you think might be useful. Buy nice sheets and towels and always have them fresh and clean for your Airbnb guests.
Needless to say, you should always make sure your Airbnb rental is in a perfect condition – clean and without any problem that require fixing. An additional tip is to restock the used supplies and toiletries to provide your Airbnb guests with the best experience possible. Do not forget that the Airbnb reviews are a crucial point in boosting your Airbnb occupancy rate.
#3 Focus on Advertisement
It does not matter if your investment property is situated in the best neighborhood at one of the greatest vacations spots – you always need to advertise it. The Airbnb occupancy rate scores better during the high season.
For example, during the winter, you will have more bookings if you have invested in a property close to a ski resort. However, that does not mean that you should stop promoting.
Besides the Airbnb reviews, your way of presenting the rental you offer is essential with regards to your Airbnb occupancy rate. Be creative, try to show your advantages over the others, and always aim to have only positive Airbnb reviews.
#4 The Airbnb Rental Income
In real estate investing, it is of high importance to establish the right price to charge your Airbnb guests. In order to have a high Airbnb occupancy rate, you need to keep an eye on the market. For example, during the high season, you can ask for a higher price.
When it is not the high season, you can offer discounts. Further, compare your asking price to other Airbnb properties, hotels, and motels. It is important that you stay competitive on the market.
As we already said, it is not necessary to invest in the most popular Airbnb destinations to receive high Airbnb rental income and have high occupancy rates. Any of the good vacations spots can be profitable if the Airbnb host puts time and effort in his/her investment.
#5 Be the Best Airbnb Host You Can
Speaking of the landlord, here are a few tips you may find useful. It is important that you are friendly and welcoming with your Airbnb guests. Make everything possible to offer them a good stay.
For instance, ask them if they want you to organize for them a tour in the city. Maybe you can also provide them with a short list of the best places to visit and how they can get there.
What about making them breakfast every morning or preparing a special dinner once? Think of interesting ideas you can implement and be proactive. This will certainly boost your Airbnb occupancy rate.
You can read more on the topic of Airbnb investments on “The Ultimate Guide to the Airbnb Investment Property”.
To learn more about how we will help you make faster and smarter real estate investment decisions, click here.