#1 What Is an Airbnb Investment Property?
An Airbnb investment property is an investment which is rented for a short period of time, typically less than six months. Airbnb investments function similarly to hotels/ motels. This is due to the fact that Airbnb rentals also provide short-term accommodation. However, more and more travelers prefer Airbnb rentals over hotels. There are a couple of reasons for that.
First of all, Airbnb investments tend to be cheaper per night.
Moreover, such properties are more convenient for tourists as well as businessmen. They are typically furnished, home-like, and offer the possibility to prepare food and do laundry at no cost. This is a huge benefit while on a trip.
Further, many people prefer to stay at Airbnb properties as this gives them a better feel for the local culture. Sometimes, the Airbnb host would make them local food or will organize a tour to an interesting place to visit.
It is important to note that the Airbnb host actually plays a significant role in the success of the rental unlike the landlords of traditional rentals. This is because the Airbnb platform presents your property based on the reviews and ratings left by your guests. Respectively, if they have left positive remarks, your Airbnb occupancy rate will increase and vice versa. As you can imagine, the latter will also have an effect on your Airbnb rental income. That is why you need to be prepared to be the best Airbnb host you can be before buying an Airbnb investment property. What else do you need to know? Check out “Four Things to Consider Before Purchasing an Airbnb Investment Property”.
Now that we have explored the basis of this rental strategy, it is time to move on and discuss how to find the best Airbnb properties for sale.
#2 How to Find the Best Airbnb Properties for Sale
We have come to answering the main question that is: “How to find the best Airbnb properties for sale.” The answer to the question is valid not only when buying an Airbnb investment property, but when you buy any type of investment. The key is hidden in conducting research. When trying to find the best Airbnb property for sale, you need to take into consideration various real estate metrics. Such metrics are, for example, the Airbnb occupancy rate, the potential Airbnb rental income along with the Airbnb cap rate and Airbnb cash on cash return. When looking for the most profitable investment, however, you should compare various Airbnb properties for sale.
It becomes near impossible to conduct all the computations by hand and get accurate results, let alone the time and effort you will invest in the process. Luckily, there are two tools which can guide you through the process and help you find the successful Airbnb properties for sale in no time. These tools are Mashvisor’s heatmap and Mashvisor’s Airbnb profit calculator.
Mashvisor’s heatmap is a great tool for observing Airbnb properties for sale in a matter of seconds. The tool can show you cities, neighborhoods or properties based on their performance. What’s more, there is a color scheme to help you spot the best properties with a single glance. When colored in green, the property is performing above the average. The orange color symbolizes an average performance, while the red- below the average. Also, the heatmap can be used to quickly compare properties based on Airbnb cash on cash return, for instance.
As we all know, budgeting is a great part of buying an investment property. Mashvisor’s heatmap can also help you here. The map will show the colored properties: red- relatively affordable, orange- averagely priced; green- expensive. This way, if you want to invest in affordable properties, you can only check them and not lose time in exploring ones which do not fit your budget. If you want to learn more about the topic, make sure to read “Airbnb Rentals: Finding Income Properties Using a Heatmap”.
Mashvisor’s Airbnb Profit Calculator
Mashvisor’s Airbnb profit calculator is similar to the investment property calculator. However, there is one difference: the first one is specially designed to help you in finding the best Airbnb properties for sale. The tool quickly and accurately computes various real estate metrics such as Airbnb occupancy rate, Airbnb cash on cash return, Airbnb cap rate, potential Airbnb rental income, etc. Additionally, the tool will give you an indication of whether or not the selected area is profitable in terms of short-term rentals. As you can imagine this way you can easily make a comparison between various properties and pick the best one. Additionally, such detailed analysis will only bring you positive outcomes.
#3 Buying an Airbnb Investment Property- Short-Term Rental Laws
Short-term rental laws vary from neighborhood to neighborhood, city to city, state to state and country to country. Needless to say, you need to be consistent with the local laws and regulations in order to be successful. It is advisable that you check the legal requirements before investing in an Airbnb property for sale. Take in mind that requirements may apply to the Airbnb property for sale itself- the way it is designed, built, maintained, etc. Besides that, there might be a time limit for renting out your property/ properties and so on and so forth. Be aware of all the potential obstacles you might face. Decide which of them you can overcome and which you prefer not to deal with. That is a vital part of finding the best Airbnb properties for sale.
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