There is no denying the unparalleled effect that Airbnb investment properties have had on the real estate market. In the perspective of the majority, the effect is surely a positive one. Airbnb has provided real estate owners with the chance to turn their underutilized homes into a source of profit. For guest users of Airbnb, it has provided them with a platform that gives them freedom to choose their host and property to rent for average prices. Long gone are the days of the hotel industry dominating the accommodation market and establishing their monopoly that has seen prices rise above the means of the ordinary individual.
While Airbnb investments are in constant increase in numbers and fortune, there is are many investors who have been scared off the idea of handing over their property to high turnover of guests. A minority of people has had their misconceptions about becoming Airbnb hosts. To those people who have been set in their own ways of knowing one tenant for a long time and dealing with them; it might come as something unnatural having to deal with a number of guests on a regular basis.
There are two types of Airbnb investment properties. One type is the renting out an entire property to guests with the host being absent, while the other type is renting out a part of the property, with hosing being present and sharing the space. Renting entire places is more expensive normally because property owners are enduring the costs of their own home and their rental property. Some Airbnb users happily pay the higher costs if they are group or if they are uncomfortable sharing with total strangers.
Misconceptions about Airbnb Investments
- Sharing the property with strangers is uncomfortable
- Too much time is required to manage the property because there are always new guests checking in
- Strangers will ruin my property or steal my belongings
These are valid reasons for Airbnb investment owners to feel concerned before entering the world of Airbnb hosting. However, these were the same concerns of the current hosts on Airbnb, that are making money and not facing issues. If the idea of hosting is to make profit then neither of these reasons will hinder that process for you as an investor.
Sharing Properties with total strangers
When it comes to sharing property with guests, Airbnb has provided a platform in which a host and a guest can communicate before a transaction or a booking is made. That means the host can get a general idea about the guest through communication with him/her. If you’re planning on have an Airbnb investment property, this is not a concern because as the host, you will not be present.
Most Airbnb hosts will testify that through their property sharing experience, they have had the chance to meet exciting people from different cultures and backgrounds. This is one of the philosophies of the Airbnb platform, connecting people around the world.
Managing Airbnb investments is by of course not an easy task because it requires attention to details, cleaning and maintenance if necessary. This is the major point that makes people question their ability to become Airbnb hosts. However, the rise of Airbnb has led to the emergence of many property management companies that take care of all the details on behalf of the host for little money. In fact, turnover is the most active part of the investment. Other tasks like exchanging keys or guiding guests, can all be done passively.
You will see on Airbnb’s website, “Trust is what makes it work.” The only way anyone will feel comfortable with allowing strangers into their property is by utilizing the tools to do background checks. Checking IDs, reading profile and reviews, and messaging guests are all ways to get to know guests before welcoming them.
Some investors think that if a guest steals something from their property or damages it, then they are responsible to replace it. However, a host has the right to charge a security deposit in case of damages or theft. It’s also important to understand the Host Protection Insurance.
Airbnb investments have provided the world with a big opportunity to make every destination a little more affordable for guests. It’s also created an opportunity for anyone to make extra money. The misconceptions or fears that a host might have are all valid, and hosts should do their due diligence, to protect themselves and their property. Learning how to act, should any of these scenarios occur, is the first step to feeling comfortable and making money on Airbnb.