Making money through Airbnb rental income is becoming one of the most popular real estate investing strategies! In fact, in some cities across the US housing market, Airbnb investment properties can yield a rental income much higher than traditional investment properties. However, some Airbnb real estate property investors are not earning a rental income as high as they expected. Why? Simply because many factors play a role in the Airbnb rental income of an investment property, such as location, pricing, reviews, etc.
In this article, we’ve put together some of the best tips to help any real estate investor significantly increase Airbnb rental income. Without further ado, let’s dive right in!
Boosting Airbnb Rental Income Tip #1: Invest in the Right Location
Location plays an important role in determining how profitable any type of investment property is. This also applies to Airbnb rental income! Before a real estate investor decides to invest in an Airbnb rental, he/she should first determine whether or not the local housing market is suitable for investing in Airbnb.
The first thing that makes a location suitable for investing in Airbnb is good occupancy rates for a high Airbnb rental income. No real estate investor wants to buy an Airbnb rental property and then not have any bookings! This obviously means you won’t be making any rental income. Mashvisor will help you in this regard – real estate property investors can search for different locations in the US housing market and see their Airbnb occupancy rates in addition to their average Airbnb rental income to make the best investing decision.
Another thing to keep in mind when considering a certain location for investing in Airbnb real estate property is the Airbnb laws and restrictions. To this day, some cities across the US housing market don’t allow renting out investment properties as Airbnb rentals.
Other cities, on the other hand, have restrictions on how many Airbnb rentals a real estate investor can own or how many times he/she can rent them out. This will obviously put a damper on an Airbnb rental income. Moreover, real estate property investors should always look for locations with the least Airbnb taxes to allow for the highest Airbnb rental income.
To find the best locations that generate a high Airbnb rental income, click here!
Boosting Airbnb Rental Income Tip #2: Market Your Airbnb Rental
The way a real estate investor advertises his/her Airbnb rental property plays a major role in attracting Airbnb guests and thus in boosting Airbnb rental income. You can’t just write anything and expect to get bookings right away! When advertising you Airbnb rental, ensure that you information about the investment property and use beautiful pictures that Airbnb guests would find inviting.
Moreover, another great tip would be to not limit the type of guests you’re renting out to. Make your Airbnb listings appealing to different types of guests such as families with children and pets, business people, and travelers. Accommodating more Airbnb guests means you don’t miss out on large sources of Airbnb rental income and puts you on top of the competition.
Boosting Airbnb Rental Income Tip #3: Increase the Exposure of Your Rental
Another trick to keep in mind is where you advertise an Airbnb rental. Real estate property investors have a number of platforms besides Airbnb to market an investment property such as Trulia, Zillow, FlipKey, and others! There is really no reason to limit where potential guests can find your Airbnb rental. Increasing the exposure of an Airbnb rental property will boost Airbnb rental income because it means more potential renters will see it, and therefore, the more frequently it will be rented!
Boosting Airbnb Rental Income Tip #4: Charge the Right Price
Setting the right price for Airbnb rentals can be a challenge, especially since Airbnb rental property investors can price their investment properties however they choose. One tip to boost Airbnb rental income is to check out the pricing of other Airbnb rentals in the same location. Real estate property investors can easily do this using Mashvisor. Mashvisor can help you discover the optimal price for short-term investment properties in any location of your choice in the US housing market.
To find other Airbnb rentals in your location for price comparison, click here!
Another tip for real estate investors to keep in mind is not to expect that a set-in-stone price will lead to a higher rental income! In certain times of the year, demand for Airbnb rentals is high which means you can charge a higher price. However, charging the same high price when demand is low will leave you with an empty Airbnb rental property. Therefore, always ensure that you adjust your price accordingly.
Boosting Airbnb Rental Income Tip #5: Improve Your Airbnb Rental
Making improvements to an Airbnb rental property can raise the value of the investment property and drastically increase the Airbnb rental income. Some important tips here are to set a budget for improvements and only make improvements that would increase the quality of life in the Airbnb rental. Spending too much does not always lead to earning more. Even simple touch-ups – like a fresh coat of paint or a new carpet – can make Airbnb rentals simply more appealing to guests for a higher Airbnb rental income and putting them ahead of competitors.
Boosting Airbnb Rental Income Tip #6: List All Year Round
Many Airbnb rental property investors rent out their investment property in certain seasons or times of the year. However, one of the best ways to boost Airbnb rental income is to list ALL year round! Successful Airbnb property investors (especially those in locations with high occupancy rates and no limits on the number of days they’re allowed to rent out) try to keep their investment property listed and occupied all the time. This allows them to generate higher Airbnb rental income even when it’s a low season.
Boosting Airbnb Rental Income Tip #7: Don’t Underestimate Airbnb Reviews
Airbnb reviews can be a great way to determine how to boost Airbnb rental income. Obviously, a real estate investor always wants to have good reviews. When your guests are satisfied with their Airbnb experience, encourage them to leave a review – this will ultimately bring in more Airbnb rental income.
Furthermore, don’t ignore or be discouraged by negative Airbnb reviews. A smart Airbnb real estate investor would dig into these reviews and identify if the issues are related to the actual Airbnb rental or property management, and work on fixing these issues.
Boosting Airbnb Rental Income – The Bottom Line
Real estate investing through an Airbnb rental property is considered one of the best ways to make money in today’s housing market. The above-mentioned are some of the best and most effective tips for any real estate investor who’s aiming to boost Airbnb rental income. Follow them and you’ll notice a significant increase in your return on investment!
Mashvisor is an online platform which provides real estate property investors with data analysis of investment properties across the US housing market (both traditional and Airbnb) in addition to the best tools to make smart real estate investing decisions. To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
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