Short-term rentals have taken over the real estate landscape for quite some time. These chic rental properties aren’t just for show; they are often lucrative investments. This is especially true when owning an Airbnb house or an Airbnb apartment.
An Airbnb house and an Airbnb apartment are such great short-term investments that they are often hailed as the best of their kind. But before we discuss why Airbnb is better than other short-term rental investments, let’s review the differences between Airbnb and traditional rentals.
Airbnb versus Traditional Rentals
More Potential Income
The goal of any income property is to generate rental income. With an Airbnb house or an Airbnb apartment, this goal is in very close reach, as opposed to traditional rentals. Traditional rentals are still great real estate investments, don’t get it twisted. It’s just that Airbnb properties tend to generate more rental income than traditional investments.
Flexibility in Pricing and Renting
If there’s one thing that stands out with the Airbnb model, it’s that it is very, very flexible for real estate investors in some regards. The very essence of renting out on Airbnb is flexible. Airbnb investment properties are rented out on a nightly basis. It’s only up to the real estaate investors on what day they decide to rent out and what day they don’t.
Pricing with Airbnb is also flexible. While an Airbnb house is subject to housing market dynamics as other types of real estate investments, the rent is totally up to the investor. Hosts (real estate investors) can set their price to whatever amount they set fit. Of course, expensive properties that are not worth it will be singled out on guests’ (tenants) reviews. There’s a balance in fair and profitable pricing, and due to such flexibility, it isn’t hard to find.
Having a Great Location Pays Off More
Location, location, location. You’ve probably heard it a million times now, but location is the most important part of real estate investing. This is even more so with an Airbnb property. Guests are very likely to be tourists, or people who need a temporary residence as they are visiting a certain place. If you have an Airbnb apartment near that special place or tourist attraction, your property will be in for many bookings.
We’ve discussed in what ways Airbnb is superior to traditional renting. In what ways is Airbnb the ultimate short-term rental investment?
Why Airbnb Is the Best Property Type for Short-Term Rentals
Greatest Flexibility Imaginable
Airbnb’s flexibility triumphs over traditional investments and over other short-term rentals, much for the same reasons. Airbnb does have one more advantage over short-term rentals in terms of flexibility, however. The renting schedules of generic short-term rentals are usually at the whims of the current season. While an Airbnb house or an Airbnb apartment can also be impacted by the current season, the influence is definitely not as great. As a result, Airbnb rentals are occupied throughout the entire year, with emphasis on certain seasons, of course.
Low Chances of Bad Tenants
Bad tenants come in all shapes and sizes… to other short-term rentals, but not Airbnb ones. Why are your chances of having a bad tenant less likely with Airbnb? The answer lies with its fair review system.
After a guest has rented out your Airbnb house or Airbnb apartment, you can review that guest based off your experience hosting him/her. By checking the reviews of a prospective tenant, you can get an idea of how well-behaved he/she will be. This review system is essentially a fast screening plan, but it’s just as effective.
Another reason there will be a smaller chance of bad tenants is simply that the tenants are often on vacation when renting out on Airbnb. Nobody wants to be rowdy during vacation.
Advertise Property for Free
Guests aren’t the only ones receiving reviews. The real estate investors and the Airbnb property also get reviewed. It’s absolutely in a host’s best interests to receive the best reviews possible. Great reviews serve as free advertising. The better the reviews, the more likely guests will be interested, leading to more bookings.
This is just one part of free advertising of an Airbnb house or Airbnb apartment. Descriptions of the property will also catch some eyes. Also, professional photos from the free photography service Airbnb provides will surely captivate guests.
Financial Protection from Airbnb
When you are operating a generic short-term rental, you are essentially on your own when it comes to financial protection. Airbnb hosts don’t face this problem. For example, if your Airbnb house or Airbnb apartment are accidentally damaged, the Host Guarantee will be there to cover the damages. For details on what can be covered, read this link. The Host Guarantee, along with the Host Protection Insurance and your own insurance, will protect your rental property from virtually anything and everything!
Receiving late (or no) rental payments can be a huge issue for traditional real estate investors, and even generic short-term rental investors. In the lightest cases, your rental income and overall cash flow are diminished. At its most extreme, a tedious eviction may be the only solution.
Once again, this isn’t a problem for Airbnb hosts. Paid rent is transferred to the host 24 hours after the guest’s check-in time. This system ensures that both parties get a fair deal.
Where to Find the Best Airbnb House or Airbnb Apartment
Now that you understand just how awesome an Airbnb house can be, you’re probably wondering: Where can you find an Airbnb rental property? Don’t look any further. You’ve come to the perfect place!
Mashvisor is the optimal property search engine when wanting to purchase an Airbnb property. If you’re looking for high Airbnb occupancy rates and high Airbnb rental income, all you need to do is spend a few minutes with Mashvisor’s property search. Mashvisor also allows you to compare your potential investment property with other Airbnb listings. These rental real estate comps and much more data and information await! So, what are you waiting for? Search for your ideal Airbnb apartment today!