Whenever we hear that a real estate market has broken some kind of record, it’s natural to start thinking “Should I invest there?” While some housing market trends are fleeting and not worth a cash investment, Airbnb Atlanta real estate seems to be a different story.
Airbnb Hosts in Atlanta Make $1.3 Million in One Weekend
Labor Day Weekend 2018- while the rest of us were relaxing or firing up the grill, Airbnb hosts in Atlanta, GA were hard at work. That’s because around 10,000 visitors made their way into the city and stayed at Airbnb rentals across the city. That’s an increase of 20% from Labor Day Weekend last year. The revenue of $1.3 million is a 55% increase from the same time last year for Airbnb Atlanta.
Real estate investors of short term rentals know that certain events in a city can seriously up rental income. That’s because, during these times, demand for Airbnb rentals skyrockets and your pricing strategy has to match that with an increased nightly rate. The events that Airbnb Atlanta hosts have to thank for this lucrative weekend were Black Pride Weekend, Chick-fil-a Kickoff Game 2018, and DragonCon Festival.
Now, a real estate investor might be thinking that this weekend was a special case. Maybe Airbnb Atlanta shouldn’t necessarily be the go-to investment strategy to make money in real estate. Let’s take a closer look at the Atlanta housing market 2018 to come to a conclusion.
Atlanta Real Estate Market- One of the Best Places to Buy a Vacation Rental Property
For those keeping up with lists for the best cities to invest in real estate 2018, it comes as no surprise Airbnb Atlanta investors can make such a good return on investment (ROI). That’s because Atlanta has been making it on to these lists all year. The year started off strong for this housing market with Forbes ranking it as one of the top booming markets in 2018.
More notably still is rented.com’s list of the best places to buy a vacation rental property. From 150 different markets, Atlanta came in at number 10. This ranking for short term rental markets was based on ROI, taking into consideration the following:
- Real estate prices
- Costs of investment property ownership (local property taxes, home insurance, maintenance, etc.)
- Local vacation rental rates
- Tourism
- Short term rental regulations
To drive this title further home, let’s look at the Airbnb data from Mashvisor’s investment property calculator for Airbnb Atlanta:
Median Property Price: $433,992
Monthly Airbnb Rental Income: $2,378
Average Airbnb Cash on Cash Return: 3.44%
Airbnb Occupancy Rate: 46.80%
Now, while that average CoC return for Airbnb Atlanta might not be screaming profit to you, keep reading to see the best neighborhoods with higher cash on cash return. Still, compared to many US real estate markets, that average return on investment is good considering you can find investment properties with a cash on cash return upwards of almost 14% for Airbnb Atlanta.
Airbnb Atlanta Investment Properties Benefit from Being in a College Town
While taking advantage of popular events and occasions, like Labor Day Weekend, is a crucial part of owning an Airbnb, there are other strategies to implement. Buying a short term rental investment property in a college town, for example, is a great real estate investment strategy. College towns are typically filled with all kinds of venues for music and art shows to accommodate the younger demographic of the location. They have unique museums, restaurants, pubs, and shops. Essentially, they are every tourist’s dream and every Airbnb host’s rental income generator.
For Airbnb investors, not only are tourists a key tenant in college towns but of course, the visitors for college events (sports games, graduations, parents/family visits) drive occupancy rates way up.
Airbnb Atlanta then really benefits from the Georgia Institute of Technology which brings in tons of students every semester thanks to low tuition. And with them comes the college events/life driving your return on investment.
Super Bowl 2019 in Atlanta, Ga Means Great Things for Airbnb Atlanta
Homeowners in Atlanta are already preparing for Super Bowl 2019 with plans to rent out a room on Airbnb. Even though this is only a one-time event, it would be a good idea to get ahold of an investment property now to make sure you cash in on this major event. And know that because of the university, booming tourism, and bustling urban city Atlanta is, your short term rental will continue to make you money.
Be ready for Super Bowl 2019! To start looking for the best Airbnb Atlanta investment properties right now, click here.
What About Short Term Rental Regulations for Airbnb Atlanta?
As mentioned, when rented.com carried out their research, they took Airbnb laws into consideration as they can seriously hinder ROI. So, is Airbnb legal in Atlanta? Yes, it’s just regulated. Renting out a house on Airbnb requires a business license and a hotel license. You’ll also have to pay a hotel occupancy tax. These Airbnb regulations will add to your rental expenses so be sure to account for them. For more information, visit the Airbnb website.
Considering that many cities are outlawing the use of Airbnb investment property, it makes Atlanta all the more appealing.
Best Neighborhoods in Atlanta for Investing in Airbnb Rentals
Seeing that the Airbnb hosts in Atlanta didn’t just get lucky, it’s a good idea for every real estate investor to know where the best places to invest in real estate are in this market (specifically for Airbnb investments). Here are the best neighborhoods in Atlanta according to Mashvisor’s investment property calculator:
The Villages at East Lake
- Median Property Price: $289,768
- Monthly Airbnb Rental Income: $3,596
- Average Airbnb Cash on Cash Return: 6.96%
- Airbnb Occupancy Rate: 59.48%
East Atlanta
- Median Property Price: $350,934
- Monthly Airbnb Rental Income: $3,569
- Average Airbnb Cash on Cash Return: 6.17%
- Airbnb Occupancy Rate: 60.28%
East Lake
- Median Property Price: $261,547
- Monthly Airbnb Rental Income: $2,073
- Average Airbnb Cash on Cash Return: 4.95%
- Airbnb Occupancy Rate: 49.13%
Kirkwood
- Median Property Price: $408,221
- Monthly Airbnb Rental Income: $3,870
- Average Airbnb Cash on Cash Return: 4.72%
- Airbnb Occupancy Rate: 64.17%
Bush Mountain
- Median Property Price: $227,892
- Monthly Airbnb Rental Income: $1,957
- Average Airbnb Cash on Cash Return: 4.34%
- Airbnb Occupancy Rate: 53.95%
Want to buy an Atlanta investment property in one of these neighborhoods? Do it with Mashvisor’s Airbnb profit calculator and get a full property analysis for the best ROI. Click here to start using Mashvisor now.
It’s a safe housing market prediction to say that Airbnb Atlanta will be topping lists again for the best real estate markets in 2019. And by then, you’ll already be a proud owner of an Airbnb rental, enjoying your cash flow.