There are some Airbnb investors who are getting five-star reviews and earn six figures annually. However, the majority of Airbnb hosts achieve only modest earnings. Even though investing in Airbnb property is becoming more and more popular, many Airbnb investors still have no idea what they need to do to maximize rental income. So, how can an Airbnb investor make more money from their Airbnb real estate investment?
Here are 8 tricks that will help you make more money with your Airbnb real estate investment.
Related: Want to Succeed with Airbnb Real Estate Investing? Read This!
1. Find a Good Location
The first step to ensuring that you make more money with an Airbnb property is selecting a good location. Like any other real estate strategy, location is very important. This is because the location has a huge influence on the occupancy rate. A good Airbnb real estate investment should be located near popular attractions. It should also be located in an area with good access to public transportation and other amenities. The location will also determine the Airbnb regulations and Airbnb taxes, which will influence the Airbnb occupancy rate and income. By choosing a location with low Airbnb taxes, for example, you can reduce your total expenses and make more money.
The location should also be a profitable one. You will need to review certain metrics such as the rental income, cash on cash return, and average Airbnb occupancy rate. You can do all of this and more if you start your search for a rental property with Mashvisor!
2. Ensure the Price Is Right
Pricing is a crucial factor in making money with an Airbnb real estate investment. Many Airbnb investors make the mistake of overestimating the amount of money they can charge. To be competitive, you need to optimize your rates depending on the demand. If you are getting very few or no bookings, you have probably priced too high.
Related: What Kind of Airbnb Occupancy Rate Can You Expect?
Ensure you do your homework by doing a review of other Airbnb listings to get a good overview of what you ought to charge as rental rate. What are your competitor’s prices? What are the average Airbnb occupancy rates? Also, take into account other factors like weekends and seasonality. You can raise your rates to take advantage of a hot market and lower them when there is low demand.
3. Manage Your Costs
To make more money with an Airbnb real estate investment, you should track and manage your Airbnb expenses. Owning an Airbnb investment comes with costs which can significantly eat into your Airbnb rental income or even lead to negative cash flow. Ensure that the money you spend is less than what you are making. For example, don’t spend a lot of money on expensive mattresses before you have enough funds to pay for them. Otherwise, you may end up paying more on interest rates on your credit. Have a budget for your Airbnb expenses and, whenever possible, always buy in bulk.
Related: Four Things to Consider Before Purchasing an Airbnb Property
4. Offer Additional Services
Apart from the Airbnb rental income, it is possible to make more money with an Airbnb real estate investment by offering extra services to your guests at a fee. These extras will not only increase your returns but also give your Airbnb real estate investment a good image. This, in turn, leads to better Airbnb reviews.
There are numerous additional services that an Airbnb host can offer. For instance, you can offer airport runs, guided tours, restaurant recommendations, cooked meals, bicycle and motorcycle hire, and laundry services.
5. Have an Attractive Airbnb Profile
Another strategy you can use to make more money with an Airbnb real estate investment is to make your Airbnb profile as attractive as possible. Your Airbnb listing should be able to lure in guests. A carefully crafted Airbnb listing will attract more guests and increase the income earned.
Ensure you not only use beautiful professional pictures but also add enticing information about the Airbnb investment property. Your description should be accurate, straightforward, and well formatted. To be more objective, you can ask your friends to look at it and give you feedback. You can also check the listings of your competitors that are doing well and learn from them.
6. Improve Your Airbnb Rental Property
Making money with Airbnb can also be enhanced by making improvements to your Airbnb real estate investment. Airbnb guests will want to rent out short-term rentals that are in peak condition with functional facilities. If your Airbnb real estate investment is not in good condition, making improvements and repairs can increase your occupancy rate significantly. If your Airbnb real estate investment looks and functions better, it will definitely attract more guests.
7. Hire Airbnb Rental Property Management
Managing vacation home rentals can be hard if you don’t have enough time to manage the property and your guests. However, you can hire Airbnb rental property management to help you out. Short-term rental property management will help to ensure that the Airbnb guests have an excellent experience during their stay. They will be responsible for the various aspects relating to the Airbnb rental properties and handling of guests.
8. Provide Top-Notch Customer Service
Good customer service is key to any business. If you provide your guests with the best experience, you will be rewarded with more positive reviews. Consequently, your short-term rental property will have higher rankings and will get more bookings. Ensure that you respond to inquiries from your guests in a timely fashion. Apologize for any reported problems and fix them as soon as possible. Also, respond to negative reviews in a professional manner, correct the problem, and learn from it.
The Bottom Line
Investing in Airbnb rental properties can be very lucrative. However, being a successful Airbnb investor has no quick fixes. It needs a lot of skill, time, and dedication. The above strategies will help you make more money with an Airbnb real estate investment.
Are you thinking of starting an Airbnb business? Mashvisor has all the necessary insights and tools you will need to make your investment journey successful. You can use Mashvisor’s Airbnb profit calculator to find the most profitable Airbnb real estate investments in any area around the United States. Click here to get started.
Related: What Will 2019 Look Like for Airbnb Real Estate Investing?
