Many real estate investors want to become Airbnb hosts. Yet, they find it hard to find the best places to invest in short term rentals. These places are not necessarily the hottest destinations on the real estate market. They compose of many more factors including but not limited to: occupancy rate, rental income, annual profit, Airbnb legal issues, etc. After taking all these variables into consideration, we have decided to present you with the top three best cities for Airbnb investment 2018. In order to give you a better idea of these places, we have described them for you in the section below. Are you eager to learn more? Keep on reading!
#1 The Best Cities for Airbnb Investment 2018: Nashville, Tennessee
Nashville is the capital of the State of Tennessee. The city is one of the hottest housing markets in the United States right now. Even though its infrastructure is growing and constantly developing, the housing prices on the real estate market stay affordable. Nashville is also considered to be one of the most advanced cities in terms of providing the needed infrastructure for Airbnb rentals. This is one of the reasons why the city falls in the list of the best cities for Airbnb investment 2018. Another factor is the fact that the city is a home of many legendary country music venues as well as other historic and cultural sights. As you can probably imagine, the latter attracts numerous tourists as the city can provide the ultimate Airbnb experience. AIRDNA’s real estate market analysis reveals that the occupancy rate for short term rentals is around 61%. Moreover, Nashville classifies not only as one of the best cities for Airbnb investment 2018, but also as one of the most profitable Airbnb cities. Its annual profit was calculated at $26,950 with an average daily rental income of $226 per property. Last but not least, we need to mention something about Nashville’s Airbnb legal issues. With the development of Airbnb in the city, more and more controversy appeared on the topic of short term rentals, especially, the non-owner occupied ones. This is why the local government is considering changing the local Airbnb rules and regulation. This is something you definitely need to consider if you decide to invest in Nashville.
#2 The Best Cities for Airbnb Investment 2018: Chicago, Illinois
Chicago is another destination known for offering a great Airbnb experience to its guests. The city is one of the most profitable Airbnb cities. AIRDNA computed its annual profit at $18,851 with average daily rental income of $154. The city is definitely one of the best cities for Airbnb investment 2018. One of the main reasons behind that is its short term rentals occupancy rate, which is 64.5%. Chicago is also amongst the biggest cities in the United States. It hosts various cultural events such as concerts and shows every year. Additionally, the city is famous for its great architectural heritage and historic sights. All these reasons also contribute to the number of Airbnb guests visiting the city. As per usual, besides the Airbnb experience the city offers, we need to discuss the Airbnb legal situation in Chicago. Airbnb Chicago works under a strict set of rules and regulations. The city requires a vacational rental license for Airbnb hosts. It is also important to note that Chicago imposes different taxes to Airbnb services. Moreover, the city is divided in zones, thus different rules may apply to different zones. It is advisable that you do in-depth research in order to legally operate your Airbnb business on the Chicago real estate market.
#3 The Best Cities for Airbnb Investment 2018: Palm Springs, California
Palm Springs is definitely one of the best cities for Airbnb investment 2018 and maybe every other year as well. The city has warm and sunny climate, which attracts many tourists even during the winter months. Moreover, Palm Springs offers various relaxing as well as engaging leisure activities to its tourists. Furthermore, there is another major factor which brings Palm Springs to the list of the best cities for Airbnb investment 2018. This is the fact that the city hosts some of the biggest music festivals not only in the United States but also worldwide. Needless to say, these events attract a huge number of visitors. Sure enough, the latter makes the return on investment on Airbnb properties in the area quite high. Real estate market analysis, according to AIRDNA, reveals that Palm Springs Airbnb is amongst the most profitable Airbnb cities with annual profit of $44,232 and daily Airbnb rental income of $348. The Airbnb occupancy rate in the area is 47.5%. In terms of Airbnb legal issues, Palm Springs operates under specific laws and regulations. Such are, for instance, the building as well as housing safety standards in addition to taxation and so on and so forth.
#4 Mashvisor’s Investment Property Calculator
Besides finding the best cities for Airbnb investment 2018, it is important to find the best short term rental properties as well. Mashvisor’s investment property calculator can help you in performing real estate market analysis (to find the best neighborhood) and investment property analysis (to find the best Airbnb rental property) easily by computing return on investment, cap rate, cash on cash return, etc. Besides computing the cap rate and cash on cash return, Mashvisor’s investment property calculator can provide you with detailed information about the investment property of your interest and its surroundings. Put otherwise, the tool is of great use when you need to quickly and accurately calculate cap rate, return on investment, and cash on cash return for many properties, but also when you need some insightful information.
What are you waiting for? Go ahead and use it in order to find the best real estate investment!