When a real estate investor thinks about top locations for owning an Airbnb investment property, US cities like Miami, Tampa, and Los Angeles are likely to come to mind. Airbnb Columbus, Ohio is probably not on that list.
So, it might surprise most real estate investors to know that, according to the short-term rentals company itself, Airbnb Columbus is among the top 10 cities for the hottest Airbnb rentals for 2018. Airbnb Columbus didn’t just rank in the top ten cities in the nation, but it ranked #6 among the top Airbnb cities in the world!
Besides this impressive feat for Airbnb rentals in this city, why is now the time to invest in Airbnb Columbus?
The Answer Is in the Numbers
For 2018, Airbnb Columbus bookings have increased by an impressive 254%. This has been a common trend for the past few years for Airbnb Columbus (2016 saw a 200% increase in bookings). This tells us that owning an Airbnb investment property in Columbus, Ohio would allow a real estate investor to enjoy a high occupancy rate.
Some real estate investors might be wary of such numbers, assuming this is a spike in the booking of Airbnb Columbus that can be attributed to a fleeting effect. They would be right to think in this way for smart real estate investing decisions.
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An Airbnb investment should be chosen based on the return on investment, and the location for Airbnb rentals should be one that has consistent popularity. Otherwise, a real estate investor may benefit from owning an Airbnb investment for a short time and then spend the rest of the time dealing with a negative cash flow property with a low occupancy rate and a bad return on investment.
Why Is Airbnb Columbus So Popular?
Luckily, Airbnb Columbus has consistent factors that support its popularity to make real estate investing in these Airbnb rentals a viable, money-making option.
Football, Football, Football!
An Airbnb investment property benefits from Ohio State University, which has one of the largest football stadiums in the US. People come from all over the nation to watch the football games, and they choose Airbnb rentals as an affordable option. Not only is Airbnb Columbus less expensive during these peak tourist times in the city, but the high occupancy rate in traditional hotels during this time leaves short-term tenants in need of other options.
Let’s take a look at the Airbnb rental income from these events: in one weekend at the end of 2017, Airbnb Columbus hosts made over $146,000 because of a football game that was taking place. For the entire football season, Airbnb Columbus hosts made approximately $775,000. Because the popularity of football will in no way peter out anytime soon, Airbnb Columbus will keep making this kind of rental income.
Not Every Airbnb Columbus Tenant Is a Football Fan
Of course, football games are not the only driving factor for the popularity of these Airbnb rentals. Another factor is job growth. While real estate investors of Airbnb rentals don’t always take a look at job growth, it is actually an avenue for rental income for short-term rentals. Many Airbnb Columbus hosts find that their tenants book the short-term rentals for job interviews. With the steady job growth in Columbus (2.35% from the end of 2016 to 2017), these real estate investors will see more and more tenants coming into the city and booking Airbnb rentals for job interviews.
With the growth in jobs comes growth in population. Again, this is not only a source of rental income for long-term rentals, but also for short-term rentals. As people are looking for a real estate property to buy or rent for relocating to the city, Airbnb rentals are a prime choice.
Owning an Airbnb investment property in Columbus will mean you also benefit from the tourist scene. Tourists come for the amazing food, the historical districts, and the upbeat nightlife.
All of these point to one thing: rental income will be in no shortage for Airbnb Columbus real estate investors.
What About the Return on Investment?
While there are many things to encourage a high occupancy rate for Airbnb Columbus, a real estate investor should also look into the expected return on investment. An Airbnb investment property in Columbus, Ohio is estimated to bring a whopping 28% annual return on investment!
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Part of the reason the return on investment for Airbnb Columbus is so high is not only the rental income from a high occupancy rate but also the initial price real estate investors pay for these short-term rentals. The issue with Airbnb rentals in more popular vacation destinations is that they are way too expensive for the average real estate investor. Airbnb Columbus is, luckily an affordable option for these real estate investors:
This lower initial cash investment will allow for a greater return on investment from Airbnb Columbus real estate investing.
Wait… Is Airbnb Columbus Even Legal?
As of this moment, there are no Airbnb laws or regulations that restrict short-term rentals in Columbus. However, this can soon change as city officials started meeting this month in order to figure out how they could regulate and tax Airbnb rentals across the city.
Before looking at the list of possible regulations for Airbnb Columbus, keep this in mind: Airbnb Columbus will have similar if not less restricting laws than most cities across the nation. Yes, it will cut into the return on investment because of taxes and other payments, but it won’t be illegal by any means.
- An Airbnb investment property can’t be rented to tenants for more than 90 days a year.
- Hotel and motel taxes will now apply to short-term rentals in Columbus.
- Airbnb Columbus owners will have to be owner-occupiers, meaning they live on the property more than half of the year.
- Hosts of an Airbnb investment property will have to get an annual permit ($75) with an application fee of $10.
These are some of the major proposed restrictions on Airbnb Columbus that are likely to be in place by the end of the year. Nonetheless, real estate investors shouldn’t be deterred from buying an investment property in the city. These regulations are not very strict compared to those of other cities.
Now is the time to invest in Airbnb Columbus. Not because you’ll be jumping on a train that is leaving the station soon, but because you’ll be making a sound real estate investing decision. Get a piece of the high bookings, occupancy rate, and rental income from Airbnb Columbus real estate today. Visit Mashvisor and find an investment property that is perfect for Airbnb real estate investing.