If you are new to Airbnb, you might be asking yourself, “Does Airbnb do monthly rentals?” The answer is yes. While Airbnb began as a short-term rental platform, it has recently revamped its service to feature Airbnb monthly rentals as one of its top offerings. Due to global travel restrictions that were caused by the COVID-19 pandemic, bookings for short-term stays have plummeted. Since Airbnb made long-term stays a permanent feature in their portal, one way that Airbnb hosts have been trying to keep their businesses afloat is by making their properties available for longer terms.
If you are looking to invest in Airbnb monthly rentals, read on to learn more about this hosting strategy and how to do it successfully.
What Are Airbnb Monthly Rentals?
For the regular Airbnb short-term rentals, a stay is shorter than 28 days. With Airbnb monthly rentals or Airbnb long-term rentals, you can rent out your property for 28 days or longer. This means that you don’t have to rent out your house only on the weekends or just for a few weeks. However, not all Airbnb rentals automatically offer long-term stays. It’s the host that decides whether to offer an extended stay.
Why Are Airbnb Monthly Rentals Popular Now?
More than ever before, travelers are searching for stays longer than 28 days and more investors are taking this opportunity to offer Airbnb extended stay options. But why is that so? Airbnb monthly vacation rentals have become a popular trend during the pandemic as it has interrupted everyday life in a number of ways.
- Due to the coronavirus pandemic, people have been forced to stay at home for months. Thus, many people, especially those working from home, are looking for a change of scenery. But with international travel still limited, people are opting for staycations by booking Airbnb monthly rentals.
- The pandemic has also affected businesses and led to work-from-home policies. Work-from-home professionals are looking for monthly apartment rentals that offer home office space. This allows them to temporarily relocate and enjoy new surroundings while still having a quiet place for work.
- College students, interns, and workers who are far from home and are looking for more privacy are also choosing Airbnb monthly rentals instead of private dormitories and hotels.
- Stranded travelers and medical staff looking for accommodation for more than a month prefer to book Airbnb monthly rentals.
Due to the increased demand for long-term stays, Airbnb has made it easier for travelers to search for Airbnb monthly rentals on the platform by adding a “Monthly Stay” option.
Advantages and Disadvantages of Airbnb Monthly Rentals for Hosts
A Steady Stream of Rental Income
Although short-term rentals typically generate more revenue, it can be disastrous if there is a significant drop in bookings. Longer stays will help boost the Airbnb occupancy rate and, therefore, provide consistent rental income throughout the year. With Airbnb monthly rentals, hosts are able to sustain their businesses even during low seasons and quieter months.
Airbnb monthly rentals also have fewer operational responsibilities compared to Airbnb short-term rentals as you’ll be tending to fewer guests. Hosts don’t have to spend as much time and money on marketing their rentals, check-in, and check-out, and cleaning. Once the guest has checked in, all you’ll need to do is communicate with them should a problem come up.
You Won’t Be Able to Take Advantage of Increased Demand
Airbnb monthly rentals have less potential to maximize profit as you charge a fixed monthly rate. Unlike short-term rentals, you won’t be able to take advantage of increased demand by adjusting the rental rate. Therefore, you are likely to earn less rental income during the high seasons.
How to Invest in Airbnb Monthly Rentals
The process of listing your property as an Airbnb long-term rental is no different from that of a short-term rental. However, if you want to beat the competition, there are some key things you need to do. If you are looking to offer Airbnb monthly rentals to guests, here are some important factors to consider:
1. Find a Profitable Location
Location is the most important factor to consider when investing in real estate. So, before you invest in monthly Airbnb, make sure the area you choose is a profitable one. To avoid potential Airbnb legal challenges, you should first consider the local regulations regarding short-term rentals before you decide to invest in a particular location.
Next, you need to look at the numbers. This is the easiest way to find a profitable place to invest in. Here are some of the best cities for Airbnb monthly rentals in the US housing market based on Mashvisor’s Airbnb daily rates:
Key West, FL
- Average Airbnb Daily Rate: $646
- Average Airbnb Occupancy Rate: 47%
- Average Airbnb Monthly Rental Income: $5,780
- Average Airbnb Cash on Cash Return: 2.28%
- Median Property Price: $1,132,743
- Average Airbnb Daily Rate: $475
- Average Airbnb Occupancy Rate: 34%
- Average Airbnb Monthly Rental Income: $2,088
- Average Airbnb Cash on Cash Return: 2.78%
- Median Property Price: $326,300
- Average Airbnb Daily Rate: $442
- Average Airbnb Occupancy Rate: 35%
- Average Airbnb Monthly Rental Income: $2,984
- Average Airbnb Cash on Cash Return: 4.22%
- Median Property Price: $556,805
- Average Airbnb Daily Rate: $365
- Average Airbnb Occupancy Rate: 49%
- Average Airbnb Monthly Rental Income: $4,281
- Average Airbnb Cash on Cash Return: 4.62%
- Median Property Price: $726,406
- Average Airbnb Daily Rate: $344
- Average Airbnb Occupancy Rate: 53%
- Average Airbnb Monthly Rental Income: $4,060
- Average Airbnb Cash on Cash Return: 4.24%
- Median Property Price: $574,946
2. Offer Monthly Discount
Having a good pricing strategy is key to succeeding with rental properties, including Airbnb monthly rentals. One strategy that hosts can use to encourage guests to book their Airbnb rentals for the long-term is to offer monthly discounts. Airbnb allows you to add the discount of your choice (1% to 99%). Some guests who would have booked daily or weekly may be encouraged to book monthly because of the discounts you’ve set up. To determine what price you should be charging, be sure to take into account what similar Airbnb monthly rentals in your neighborhood are charging.
3. Cater to Your Guests’ Needs
When investing in monthly rentals, you need to make your property livable for a long-term stay. You can prepare it for monthly guests in the following ways:
- Offer a dedicated working station to attract business travelers and working professionals.
- Ensure that the house is furnished and the kitchen is well-equipped
- Offer stable Wi-Fi *
- Provide a detailed house manual with clear instructions on things like garbage collection days.
- Offer an up-to-date welcome book with useful information like good restaurants in the neighborhood, nearby gyms they can join, recreational activities to consider, and other recommendations.
4. Follow Airbnb Cleaning and Safety Rules
Due to the coronavirus pandemic, Airbnb requires hosts to comply with the enhanced cleaning standards and safety rules. Complying with these Airbnb Covid policies not only prevents you from being removed or suspended from Airbnb but also attracts guests to your rental.
The Bottom Line
Although Airbnb monthly rentals are generally not as lucrative as short-term rentals, there are times when they can be a reliable alternative. As a result of the COVID-19 pandemic, the demand for Airbnb monthly rentals has increased and brought new opportunities to investors. However, for you to be successful with this rental strategy in these challenging times, you need to be committed and implement some of the best practices outlined in this article.
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