There is no doubt that within the world of real estate investment, rental properties are amongst the most popular and lucrative investments due to their flexibility, variety, and the high demand on them by both investors and tenants. As real estate investment is growing drastically day after day and as more people are interested in becoming real estate investors and generating passive cash flow, new rental properties options are put on the table. The Airbnb investment property has become a famous investment strategy in today’s real estate realm, and many beginner real estate investors are curious to start investing in it, but what is an Airbnb investment property and how can you use it to make money?
What Is an Airbnb Investment Property?
An Airbnb investment property is an online service and marketplace that offers a platform for hosts to rent out short-term lodges including apartments, a private or a shared room, homestays, vacation rentals, and couches with basic amenities like access to a kitchen and living room, heating, AC, shampoos, and extra bed and bath sheets. It consequently provides an access for guests and travelers to search for affordable places to stay in during their travelling for a short period of time. Airbnb is a great way for people to join real estate investment and make money from the comfort of their house and also for guests to find affordable short-term lodges and live the entire experience of their travelling.
How Does an Airbnb Investment Property Work?
You can access an Airbnb investment property either through the Airbnb website or the Airbnb mobile app, create an account for free, and choose whether you want to be an Airbnb guest or an Airbnb host. Airbnb charges guests from 6% to 12% service fee and hosts from 3% to 5% on each booking. Airbnb hosts can choose the nightly rate price they want, with some recommendations from Airbnb. On the other hand, Airbnb guests can utilize various filters to look up the property they want including: locations, dates, and number of guests.
How to Start Investing in an Airbnb Investment Property?
What is great about Airbnb is that you do not need to have rental apartments to invest in it. If you simply have an extra room in your house, a basement that is not occupied, or a rooftop, you can join with an Airbnb investment property. However, before taking such a decision, you should holistically educate yourself about an Airbnb investment property, your ability to be an Airbnb host, and the value and prices of short-rental properties in the market. After you make sure you are ready to invest in Airbnb, let us guide you through how to start and how to invest in an Airbnb investment property.
- Create your account
This is the first step you have to do after visiting the Airbnb website or downloading the app. Creating an account is for free where you write some information about yourself as a host, what you want to offer as a short-term lodge, amenities included, and the nightly price. Focus on providing an attractive and descriptive title because this is the first thing that pops up for Airbnb guests, an informative description about the property and its amenities and also professional pictures of a clean, tidy, and friendly place. Always come up with creative ideas to make your Airbnb listing look exciting during different seasons. Starting off with a professional marketing for your Airbnb investment property is the foundation for your success, that is why you should invest your time focusing on that.
- Manage your calendar and availability
Once you create your account and listing, you are in full control of the house rules, interaction with Airbnb guests, prices, and availability. Manage the check in and check out times and the availability of your property based on your ability to manage and prepare the property, clean it up, and make sure it is ready to welcome your guests. Staying in contact with Airbnb guests, whether for inquiries or while renting out the property, is extremely important for your property’s review and feedback and for them to feel welcomed and at home, which will gradually push up the occupancy rate of your Airbnb property.
- Constantly manage your property
Whether you choose a professional property management by specialized companies or invest your time and effort in managing the property yourself, you should put great attention on it since it is a key to maintain your property’s investment and succeed in this domain. Managing your Airbnb investment property means a constant check on the property’s cleanliness, tidiness, amenities, and readiness to receive Airbnb guests. You also have to constantly check on the property’s maintenance and conditions after guests check out of it, thankful to the $1 million insurance policy that Airbnb provides yearly for hosts. Being a host of an Airbnb investment property requires your time and effort in managing all aspects of the property, which helps you generate positive cash flow by receiving positive feedback and increasing occupancy rate.
How Do You Make Money with an Airbnb Investment Property?
With Airbnb high nightly rate that allows you to generate double the amount of money you get from traditional rental income and the money you make off of cleaning fees, Airbnb can be your way to get extra cash and make passive income. However, it all depends on your willingness to invest time and effort in educating yourself about real estate investment in rental properties, the housing market, and how to deal with Airbnb guests in order to have high and constant occupancy rate, which will secure positive cash flow.
The perks of having an Airbnb investment property are unlimited once you know how to master the market. It does not only allow you to generate extra money, but can also be your way to professional and financial independence. Your willingness as an investor in an Airbnb investment property to put effort and time is the detrimental factor on your success in this domain. Taking advantage of the characteristics and privileges which the Airbnb platform provides for hosts starts by educating yourself about your potential as a real estate investor, the Airbnb investment strategy, the market, and the real estate world in general.
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