As all real estate investors must face off-seasons, they use their peak seasons to recover losses and gain extra revenue to cover the low revenue during the off-season. Peak seasons and off-seasons are an endless cycle that your Airbnb business will have to go through. To be a successful real estate investor, you must learn how to start making money with Airbnb during both seasons. There are many ways to go about that. It’s important to keep in mind that boosting your occupancy rates and establishing a recurring income is all that matters. Always keep the money rolling in.
How to start making money with Airbnb during the offseason
To simplify things, we’ve created a list that you can follow to boost your occupancy rates and generate more Airbnb rental income:
Lower your nightly rate
This is a simple case of a discount pricing strategy. With lower rates, you will get more Airbnb guests. This is mainly because you will appeal to a wider audience or because it puts you within the price range of most guests in your areas.
Using a discount pricing strategy to compliment your Airbnb rental strategy is needed especially in the off-season. A useful method to bring your price down is to look at other listings in the area and adjust your price accordingly. This strategy is guaranteed to help you in making money with Airbnb in your off-season. Yes, you might not end up making thousands of dollars during the off-season, but you might cover your costs and then some. If you’re looking for the best places to generate a substantial Airbnb rental income, read this blog post: The 8 Best Places to Invest in Real Estate for High Airbnb Rental Income in 2018.
Offer your potential guests more
Making money with Airbnb during the off-season means you need to offer more than other Airbnb hosts in your location. The sky is your limit. You can add more appeal to your investment property. Maybe conduct some minor renovations to make it more appealing to guests. It’s not a bad idea to offer complimentary drinks or breakfast. Just make sure to make your listing as approachable as possible. Most importantly, update your listing often. For example, if you have a small garden in your investment property that you’ve just added to it, take a photo and upload it so guests can see your place in the best suit.
Maintain good relations with previous guests
This works for all types of real estate investment ventures as well as Airbnb listings. While maintaining relations with previous guests, whether through email or Facebook or any other online method of communication, you can encourage referrals. Ask the guests to refer your house to anyone visiting the area and assure them that you will take care of their friends. Additionally, you never know when the Airbnb guest is going to visit your area again. If you left a good impression the first time and had positive reviews, there’s no reason that guest won’t go for another round with your investment property. Ultimately, making money with Airbnb can be done by maintaining past relations with guests.
Pay attention to your ranking on Airbnb
To find out your rank, go to your city or area and search for a specific day. How many listings are atop of yours?
Airbnb encourages updating your Airbnb listing once every month. This is needed to highlight any changes, new rules, or events that are going on in your area. Additionally, the response time is often overlooked. Note that guests often book with the host that replies first. This makes the Airbnb host seem available, approachable, and attentive. There are automated services that you can use to have a great response time, a popular one among Airbnb hosts is Zapier.com.
Additionally, if you’re a real estate investor who is specialized in Airbnb rental properties, you can try to make it as easy and flexible to get your Airbnb rentals booked. Meaning, don’t limit your guests by stressing on the no cancellation policy, or limiting them to two nights or more only. Guests want to feel flexible and in control. This works great both for Airbnb as a corporation and you as a real estate investor.
Use technology to predict your rental income
With the use of predictive analytics and comparative market analysis software, you can predict almost everything concerning your real estate investment. To do so, you can run a comparative market analysis using an investment property calculator to figure out all the details that concern your real estate investments. This includes expenses, rental income, revenues, taxes, HOA fees, and comparative data to help you see where your investment property stands compared to others in the area. Mashvisor’s comparative market analysis will take care of all that for you. You can also find out the Airbnb occupancy rate and the capitalization rate of your property. Click here to make use of the 14-day free trial with Mashvisor’s predictive analytics and be ready to start making money with Airbnb in the next off-season.
For more information on Mashvisor’s comparative market analysis, read this: Comparative Market Analysis: Real Estate Investing.
Get as many Airbnb badges as you can
This is key to making money with Airbnb properties. The more badges you get, the more verified and professional you look. Airbnb offers many badges, such as a super host. Moreover, Airbnb encourages real estate investors to verify their ID and turn on the instant book feature as it makes the guest feel at ease when booking and guarantees you a steady flow of bookings.
For more information on making money with Airbnb, read this blog post: How to Boost Your Airbnb Rental Income: Tips from an Airbnb Super Host.
Making money with Airbnb during the off-season is possible. You just have to be more attentive to the market needs and adjust your Airbnb investment property accordingly. Also, keep in mind that making money with Airbnb is a lucrative real estate investment strategy when properly employed. Just make sure to advertise yourself properly and highlight your competitive advantage.
If you have more insights on making money with Airbnb rentals, please share them with us in the comments section.