If you’re looking for an Airbnb investment property in the US housing market, then you’re definitely wondering which top cities across the country have a high Airbnb rental income. Some cities across the US housing market are great locations for an Airbnb investment property. Other cities, on the other hand, are better suited for a traditional real estate investment property. There are three factors that affect your Airbnb rental income:
Location
The location of an investment property (whether traditional or Airbnb) is key to determining its profitability. To get the highest Airbnb rental income, you have to invest in a location that matches this investment strategy. Typically, the best locations to buy an Airbnb investment property are those that attract a high number of tourists – these locations have a high demand for Airbnb rentals, meaning high Airbnb rental income. In addition, don’t forget to look for locations in which Airbnb is legal!
Occupancy Rate
The occupancy rate is the amount of time during a year that it is occupied by a tenant. This rate depends on many factors, mainly the location of the investment property, but also how the real estate investor advertises his/her property and Airbnb reviews. For example, an Airbnb investment property that has a high number of positive ratings will be in higher demand and have a much higher occupancy rate, meaning a higher Airbnb rental income
Property Management
Managing short-term rentals requires a lot of time and effort due to the high frequency of tenant turnover. For this reason, some property investors turn to hiring professional property management. However, you should keep in mind that property management companies come with a price. Most companies charge real estate investors 8-12% of their property’s rental rate, which definitely impacts the Airbnb rental income.
Top 10 Cities With the Highest Airbnb Rental Income in 2018
- San Francisco, CA Real Estate Market: $5,061
- Santa Cruz, CA Real Estate Market: $4,016
- Santa Rosa, CA Real Estate Market: $3,459
- Boston, MA Real Estate Market: $2,910
- Midland, TX Real Estate Market: $2,254
- Austin, TX Real Estate Market: $2,247
- San Jose, CA Real Estate Market: $2,197
- Rogers, AR Real Estate Market: $2,076
- Vallejo, CA Real Estate Market: $1,931
- Springdale, AR Real Estate Market: $1,914
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