Trends & News4 Airbnb Industry Trends You Need to Know Before Getting Started by Heba Baker July 19, 2019July 18, 2019 by Heba Baker July 19, 2019July 18, 2019With all this buzz surrounding Airbnb, an increase in real estate investor interest makes sense. However, if you’ve never invested in the short term rental business, there’s a couple of things to know. With the Airbnb industry expected to keep growing in 2019 and onward, you need to be ahead of the game. Know what to expect so you can know how to invest in the vacation rental industry.4 Airbnb Industry Trends for 2019Here are the major trends to know for Airbnb real estate investing in the US housing market.1) Investor-Owned Properties Are IncreasingAirbnb has taken over the short term rental industry so much so that it’s now the default platform when people think short term or vacation rental. The Airbnb industry has grown at a very impressive rate. People can find an Airbnb rental property in over 85,000 cities across the world. While it may have started out as an easy way for homeowners to make some extra cash on the side by renting out spare rooms for short periods of time, that is no longer the case. The Airbnb industry has come far from these humble beginnings, as the market value now exceeds $30 billion.This Airbnb growth is due mainly to real estate investor interest in the high rental income that comes with these properties. When people buy vacation homes, they no longer do it for the personal use of owning a vacation home. No, now the typical thing is if you’re owning a vacation home, you’re owning an Airbnb. There is an investment strategy here. People are buying these properties with rental income in mind. In 2019, the short term rental industry is forecast to generate more than $169 billion in revenue. We can see the highest shift towards these Airbnb investment properties in the states of Florida and California; 14 percent of property owners with a second home in the US are found in Florida and 7 percent are found in California.Related: Four Things to Consider Before Purchasing an Airbnb Investment PropertyIf you’re just starting your Airbnb rental business, it’s important to keep in mind that you will have competition from both homeowners and business-minded real estate investors. Knowing this trend going in will allow you to work to beat the competition and stand out from day 1.2) Airbnb Industry Growth Brings Along Regulation2019 has been a tough year for non-owner occupied short-term rentals as they’ve come under a lot of government scrutiny in housing markets across the nation. Although the Airbnb industry has brought in a lot of money for these cities and it has boosted their economies, there are critics. Mainly, the backlash is coming from local neighborhood residents and the hotel industry.Some governments are concerned with the high market saturation of the Airbnb industry in their communities. As a result, short term rental regulations are starting to be implemented. They differ from city to city, but generally, these regulations pertain either to caps on the number of rental nights, restrictions on areas of operation for short term rentals, and specific host requirements. We have also seen some regulators coming at the Airbnb industry for not taking accountability for collecting taxes, but most municipalities have already reached agreements regarding tax collection and remittance.So if you’re just starting out in the Airbnb industry, it’s very important for you to check out the legality of this real estate investment in your housing market. Keep in mind to check both state and city law as city councils do sometimes implement their own regulations. A couple of cities to be careful in when considering joining the Airbnb industry are New York City, San Francisco, and Santa Monica.You should also watch out from these cities with strict regulations on the Airbnb industry: 5 Cities Where Airbnb Is Illegal in 2019.3) Short-Term Rental Properties Generate Stronger Cash FlowReal estate investors can make some serious returns by investing in the Airbnb industry if they choose the right markets. Because you’re hosting multiple short term guest groups in the same month, the monthly rental income Airbnb operators generate is typically higher than what they’d make with a long term rental in the same market. Sometimes the difference is quite large (as you’ll see in our data on the cities listed below). So investors in the Airbnb industry can absolutely expect a strong cash flow.Although starting an Airbnb business is no easy task, it is rewarding. There are key performance trends to look out for when it comes to having a profitable investment in the Airbnb industry 2019. Something first-time short term rental investors need to know is that an Airbnb rental has different success factors compared to traditional long term rentals. If you want to invest in the Airbnb industry, you need to search for areas with a high percentage of people coming and going- think areas with high-tourism. This will give you better chances at a higher occupancy rate and high rental demand in an area pushes nightly rental rates up.But where can you get the kind of data you need to find such locations? Mashvisor’s investment property calculator provides all the necessary metrics regarding rental property performance so investors can locate the best real estate markets for their strategies. We’ve used our calculator to find the best cities for Airbnb investment in the US housing market 2019. Here they are, in no specific order.Jacksonville, North CarolinaMedian Property Price: $184,052Price per Square Foot: $238Monthly Airbnb Rental Income: $2,772Airbnb Cash on Cash Return: 9%Airbnb Occupancy Rate: 60%65% More Rental Income than Traditional PropertiesKey West, FloridaMedian Property Price: $1,068,138Price per Square Foot: $717Monthly Airbnb Rental Income: $10,537Airbnb Cash on Cash Return: 9%Airbnb Occupancy Rate: 73%48% More Rental Income than Traditional PropertiesEwa Beach, HawaiiMedian Property Price: $733,621Price per Square Foot: $482Monthly Airbnb Rental Income: $5,570Airbnb Cash on Cash Return: 6%Airbnb Occupancy Rate: 70%53% More Rental Income than Traditional PropertiesFairmont, West VirginiaMedian Property Price: $188,713Price per Square Foot: $97Monthly Airbnb Rental Income: $2,437Airbnb Cash on Cash Return: 8%Airbnb Occupancy Rate: 61%54% More Rental Income than Traditional PropertiesIt really isn’t that difficult to find a strong real estate market in the Airbnb industry. You just need to have the right tools. Find a Profitable Airbnb Investment PropertyRelated: What Kind of Airbnb Return on Investment Can You Expect in 2019?4) Airbnb Guests Have Shifting PreferencesTo be successful in the Airbnb industry, you need to listen to what the people want. Investing in a profitable real estate market isn’t enough. You need to have a rental property that guests would like to stay at. This is especially important for highly-competitive markets. As a short term rental owner, you need something that will attract more and more guests to your Airbnb and not the one across the street.Here are a couple of tips to draw guests to your Airbnb rental property:If it’s in close proximity to downtown or the main tourist attractions of your city, highlight that point when marketing the Airbnb propertyThe more pictures you include in your listing, the betterProvide accurate details regarding the rental property in the listingIf you want good guest reviews, make sure your guests leave your property happy with the service you provided. Leave your contact information in plain sight so you can be alerted of any guest concerns immediatelyHave a clean Airbnb, whether you do it yourself after every group of guests, or hire a cleanerOf course, you want to profit from your Airbnb investment, but don’t price too high for the area you’re inProvide essential amenities like clean towels, soap, bed linens, and pillows for each guest. This might sound like it’s obvious but sometimes hosts will book a party of 3 guests when there’s only enough of these amenities for one.The Airbnb industry is a fast-paced one and it isn’t slowing down for anyone. If you want to start jumping on investment opportunities, make sure to utilize Mashvisor’s services. Start out your 14-day free trial with Mashvisor now. Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb GuestsAirbnb RegulationsCash Flow 0FacebookTwitterGoogle +PinterestLinkedin Heba BakerHeba is Content Writer at Mashvisor with a BA in Business Administration. Most of all, she enjoys writing about the constantly changing markets in the US real estate industry. If not writing, Heba is exploring and learning. 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