Airbnb rental properties are not complicated to run. Lifting your property to the path of success is not rock science. Most successful Airbnb hosts have relied on a working formula that has guaranteed success: following the trends. Due to Airbnb being an open platform for the users to share and contribute makes it an entirely open market, users and guests share their thoughts and opinions about properties, services and more.
Following the common trends and the success stories of Airbnb owners is not the only path to success in the Airbnb rental properties market. Investors in Airbnb who have gone on to develop new ideas, concepts and innovations have also been able to increase demand and profit.
As a new investor, if you ask a successful Airbnb owner about what criteria makes their property successful, they would point out the following: size of the property, location, season, and presentation.
Airbnb Rental Properties Success Factors
1. Size of the Property
Yes, size matters. It is the most basic form of success in all real estate, not just Airbnb. The bigger the property, room, or land, the more rent you can charge. When it comes to Airbnb properties, owners who are renting entire homes are known to make around triple the amount of money that private room hosts make. Private room renting has definitely been known to contribute to rent or bills, but it’s not exactly considered an investment. Those who have purchased entire homes to turn into short-term rentals have been known to save their Airbnb income, to go on to buy other properties, which fast tracks them to unparalleled profits.
Related: Airbnb Income From an Entire Home vs. a Single Room
2. Location and Season
The location of the property is of paramount importance and that goes without saying because as we all know location, location, location are the first three rules of real estate. Where you choose to have an Airbnb rental property is what determines the kinds of guests you’ll have. Owning an Airbnb property in Las Vegas, Nevada will most probably you keep you busy with bookings all year, while owning one in Salem, Oregon will most probably leave you questioning your investment choices. Location becomes vital in Airbnb because as an investor, your customer base are tourists and travelers coming to explore the city. The issue of seasons is a sub-category of location, because depending on the location you invest in, you’ll have to adapt to the high and low seasons of that location.
To have more of an understanding about the best locations to invest in and the profit you can potentially make from each location, it is highly recommended to try out Mashvisor’s interactive analytics calculator. This tool allows you to analyze all the financial aspects of the city and neighborhood you want to invest in, until you find one that suits your needs and capabilities.
Related: The Use of Predictive Analytics in Real Estate Investing
3. Presentation and Marketing
Airbnb rental properties are becoming a trend of the real estate investment world. Any trend brings in new investors and ultimately, more competition. That’s why the presentation and marketing of your property are what separate you from your competitors.
First of all, your Airbnb page should be have clear descriptions of the property, neighborhood and the facilities you have available for your guests. This gives them a mental picture of what your property offers and the environment they will be living in.
Secondly, the photos of the property should be taken by a professional photographer who can take high quality pictures.
Thirdly, interaction with your guests builds trust and understanding between both parties that leads to good reviews for your property. These three points are the stepping stone to becoming popular on Airbnb.
Related: Why Invest in an Airbnb Investment Property Over a Traditional One?
Success of Airbnb rental properties is primarily built on learning from the experiences of others. The most successful Airbnb owners share the three points mentioned above as their common ways of becoming “super-hosts”. Becoming part of that group is the trend that carves a path of success and profit, so why not follow the trend? In fact, as a potential investor you have the power to follow the trend and build up on it with new ideas, becoming as revolutionary as Airbnb.