Whether you’re traveling for pleasure or business, Airbnb has managed to find its place among hotel accommodations to pave the way for a new generation of travelers. As for any new ventures in the economy, real estate investors rapidly rush to exploit the benefits of it.
Airbnb investment properties have proven to generate substantial income for real estate investors who invested in it early on. If you chose Airbnb rentals for a property investment, then you need to make sure that your investment property is generating a high Airbnb rental income.
So, How Can You Maximize Your Airbnb Rental Income Through Your Investment Property?
Owning an Airbnb property or a short-term rental can sound like a lot of hard work on the investor’s behalf, but knowing how to make money in real estate through short-term rentals can be financially rewarding for the real estate investor even more than long-term rentals. Here are a few thoughts to keep in mind to make sure you can maximize your Airbnb rental income:
Plan for It Prior to the Purchase of Your Property
This may not be the case for everyone in the Airbnb business, but planning for a property to be an Airbnb rental can save you a lot of time to set up your listing and can drive your Airbnb rental income up. This works by looking into properties that can double as long-term rentals and short-term rentals. This way, you are free to make the best decision in that regard after closing on the property.
Related: Best Places to Buy an Investment Property for Airbnb Rental Income
To find the best Airbnb investment property, it is recommended to use an Airbnb calculator. This tool can guide you in the right direction with minimal effort on your behalf as a real estate investor. It contains Airbnb data that you can employ to determine the eligibility of potential properties in making a substantial Airbnb rental income.
Mashvisor’s investment property calculator performs important analysis such as real estate market analysis which is comprehensive and rich with metrics that real estate investors can utilize to make informed decisions such as cap rate, return on investment, and cash on cash return.
Utilizing technology in the real estate market has made such calculators available to both beginner real estate investors and experienced ones as well.
Take High-Quality Photos of Your Space
This is an inseparable part of advertising your investment property. Making your Airbnb investment property look appealing to Airbnb guests as they surf the web looking for a comfortable stay can dramatically affect your Airbnb rental income. Make sure to let plenty of light into the place as it makes a place homier.
You can notice the difference when you surf and find an Airbnb host advertising his/her property using photos taken by a phone. More experienced Airbnb hosts make sure to take impeccable photos of their space to entice guests to stay there.
Related: Key Aspects of Short-term Rental Property Management
Optimize Your Listing to Make It Stand Out
Making sure your listing gives the right idea about your space is one of the most important steps in raising your Airbnb rental income. This is only natural as it is the first thing the viewer perceives of your property. Many Airbnb hosts have insufficient information on their listings which can make booking a bit of a gamble.
You can maximize your Airbnb rental income through having sufficient, organized information on your listing. This can help the Airbnb guest get the information needed and assess if your rental property is the right one for them. Make sure to take your time to write the right headings for your property and organize information in bullet points.
Making your listing stand out from others in the same location can be easily done by describing what makes your place unique.
Reviews Matter
One of the comforting things that Airbnb offers is the ability to read reviews of your past Airbnb guests. Airbnb reviews are your online reputation. This can help future Airbnb guests build an expectation of what kind of stay they will have once they arrive at your doorstep. In addition to that, the more reviews you have, the more it gives a hint about your Airbnb occupancy rate while specifying details about each stay.
Any short-term rental property can get negative reviews; it is your responsibility as an Airbnb host to read such reviews so that any issues are dealt with for future bookings.
Related: Owning an Airbnb Rental? Keep These Events in Mind
Respond to All the Messages and Requests You Receive
Investing in real estate is going to make any real estate investor deal with different kinds of people and interact with them for the benefit of your real estate investment. This is one of these interactions that Airbnb hosts must do to keep Airbnb guests coming their way.
Keeping a 100% response rate can be a bit difficult but achievable if the host replies to the messages daily. This can work wonders for you when owning an Airbnb property. Achieving a 100% response rate can be achieved by replying to all your messages. So, take the time to do that; think of it as converting messages into bookings.
Keep the Property Spotless
Keeping your rental property clean and clutter-free can work wonders for your Airbnb business. Your place doesn’t have to be top of the line decorative-wise to generate a substantial Airbnb rental income.
All you need is a clean, clutter-free space to get excellent Airbnb reviews and give your Airbnb guests the best stay you can. If cleaning is not your thing, there are plenty of Airbnb cleaning services that you can hire to do that task for you.
Driving your Airbnb rental income up is not as difficult and complicated as you might think. A great way to assess your property is to try and put yourself in your guest’s position and think what you can do to make a better experience for them. This also works for long-term rentals as it’s quite important to keep your long-term tenants satisfied and happy with your property.
To learn more about all aspects of real estate investing, continue reading our blog.