Here’s your best guide to becoming an expert on Airbnb rental properties!
What are the types of Airbnb rental properties?
With Airbnb rentals, there isn’t any specific type of property to list. You can list a room, a villa, a vacation house, and even a castle,as long as the investment is worthwhile. However, we strongly suggest that you start with renting out a room if you are new on Airbnb.
What are the hottest Airbnb markets?
If you are looking for the hottest Airbnb markets, then we have got a few for you. Many cities in the US have it big for Airbnb rental properties which caused many real estate investors to make a lot of money. However, if you look at the rating list for the hottest Airbnb markets, you will most definitely find Miami, Austin, and San Diego on the top. They are very popular as destinations for vacations. Their combination of weather and landscapes in addition to different activities attract many visitors. This cause the demand for Airbnb rentals high. So, if you are looking to make money through Airbnb, go for these cities.
Are Airbnb rental properties a good investment?
No matter what you invest in, you will also have some risks to face. However, if you do things the right way, you still have the chance to avoid risks as much as possible. That is the trick with Airbnb rentals. Indeed, they are a good strategy. All you have got to do is take into consideration the major success factors for this type of investment:
Location: Location does not only mean that your investment property has to be on the beach to get good reservations all the time. It also means that you have to look at the area in terms of utilities, taxes, and other expenses. For example, California is a great market for Airbnb rentals. However, the utilities, taxes, and property expenses are going to cost you a lot. Therefore, it won’t make any financial sense to you.
Treat it like a business: First of all, you should hire someone to manage and clean your Airbnb rental properties for some things have to be done professionally. Second, you will have to list it for a cheap price initially in order to get good reviews. You have to keep in mind that you will not have your property booked unless you have some reviews, preferably some good ones!
Check the laws: Before getting into any kind of investment, it makes sense to check the law regulations associated with it. Otherwise, you are the one to face the consequences of any legal issues arising.
Airbnb profitability calculator
Airbnb profitability calculator will help you check whether you are making money on your Airbnb rental properties or not. There are a few things to take into consideration when calculating your profits:
Tax on income: 30% is the income tax you will be paying for your state/county
Use tax 6%
Airbnb fees 3%
Consumable expenses, such as coffee, towels, etc.
Only when you take these factors into account, you will be able to decide whether you are making money or just wasting your time and money.
How much money can you make with Airbnb rental properties?
It has been proven that real estate investors on Airbnb are making the most money in the industry. The average person could make up to $1,000 a month. This, of course, depends on the type of property you are listing. If you are renting out a villa, then you can expect more in cash flow than when renting out a single room. Whatever the case, $1,000 is good money compared to gains from other real estate investment strategies available.
Where is Airbnb legal?
Sure enough, there have been some problems with legalizing Airbnb around the world. It is legal in 191 countries with listings in 65,000 cities worldwide. Recently, it became legal in Japan. However, there are cities that have issued strict regulations regarding Airbnb rentals. This led many listings to shut down for not being able to meet the requirements.
Tips for improving your Airbnb rental properties investment
Your Airbnb investment business depends on how you run it, as this affects your rankings and reviews on Airbnb. So, in order for you to get the most out of your Airbnb rental properties, follow these tips:
Take good pictures: The human kind is obsessed with visuals, therefore, that is exactly what you have to take advantage of! No, we are not saying that you have to put a fake picture out there. We are basically saying that you should take professional pictures that reflect all aspects of your Airbnb rental properties. If you have a pool, then make sure to take a picture at the right angle in order to make it appealing to Airbnb guests. Moreover, there is nothing wrong with having a professional taking the pictures for you!
Keep the rental prices down: Again, we do not mean that you have to price it very little. However, you must keep in mind that you are not a hotel. Therefore, your prices cannot be anywhere near a hotel’s pricing. The whole point of Airbnb is cheap accommodations, so make sure you take that into account.
Choose the right words: Of course, when you list your Airbnb rental properties, you write descriptions. Make these descriptions appealing. Try to sell your potential Airbnb guests experience instead of selling them facts. Your guests want to know what makes your rental property the best and why they shout rent yours and not others’. So, make sure you give them all the reasons for your properties’ listings.
Be nice! Well, first of all, that is an absolute must for you as an Airbnb host. If I were to rent a house on Airbnb and have a rude host, well, I don’t think I’ll be willing to rent the property ever again! So, make sure you welcome your Airbnb guests in a nice way. You can even give them something upon arrival. It does not have to be expensive, it could be simply a box of chocolate. Just make them feel like they are at home.
Mashvisor has always been there for real estate investors. No matter what you need to know about real estate investing, you can always turn to us. From real estate education through tips on growing your business to all the different real estate investing strategies, it is all provided for you at a click of a mouse!