Airbnb RentalsFinding the Perfect Property for Your Airbnb Rental by Sam Zuo March 25, 2019March 24, 2019 by Sam Zuo March 25, 2019March 24, 2019Airbnb rentals are an exciting proposition for any new real estate investor. With very little cash, you can find ways to create a profitable and passive Airbnb business.Of course, there are several other forms of real estate investing but Airbnb rentals are a great place to get started because it requires 1/20th of the starting capital of a typical down payment.How Can an Airbnb Rental Create Passive Income?You might be wondering how this is even possible. Yes, you can perform Airbnb arbitrage by leasing an apartment and then subleasing it out via Airbnb for a profit. The delta is your profit. For example, a $1,000 a month for a 1-bedroom and you sublease it out via Airbnb for $2,000, then the delta of $1,000 is your profit.To create a Passive Airbnb business, the first step is to find a place to rent. Do your research before renting a place, because you want to find a profitable unit in a good location. You will need some start-up capital to pay for the security deposit and other fees that will be required before you can get your new rental ready for Airbnb.Before you make any deposits or sign any paperwork, make sure to check with the landlord to ensure renting out your unit on Airbnb is allowed. But don’t fret, Passive Airbnb will teach you how to negotiate with the landlord.What Is the Ideal Airbnb Property?The ideal Airbnb rental arbitrage property is one that earns you money. However, you need to decide for yourself what kind of income you want to see to make your efforts worthwhile.In order to earn a profitable income, you will need to determine how often you’ll be able to rent out the apartment and then set the price accordingly. For example, if you leased an apartment for $1,500 a month, then you would need to lease it for 30 nights at $50 just to break even. To earn a profit, you will need to set your costs higher.Check what other rental properties in your area are charging and go from there. If you have a nice apartment in a convenient location, then you will likely be able to demand a higher price. If you lease an apartment in a bad area of town, then you will be forced to set a lower price. It is incredibly important to do your research before leasing an apartment for Airbnb rental arbitrage.Additional Costs to Keep in MindAs you start up your Passive Airbnb business, you will need to take several additional costs into consideration. You cannot simply go by the monthly rent cost when setting your Airbnb nightly rate. You need to consider start-up costs and other recurring costs, otherwise, it is easy to start losing money on this venture.The basic startup and recurring costs include:Security deposit- Required by most landlordsRent- You will have to start paying rent before you find your first guestFurniture- You cannot have guests show up to a completely empty apartment, so you will have to find furniture right awayUtilities- Unless these are included in rent, you will be responsible for water, electric, etc.Subscriptions- If you choose to provide Netflix or cable for your guests, then you will also have to pay for thatCleaning- If you are not going to be on site, then you will need to factor in cleaning services. You should plan to send the cleaning service between each guest.Legal fees- You may need to draft a custom lease for your new Airbnb rental property (we have a legal residential sublease agreement to help you).Professional photography- You are more likely to have consistent occupancy with professional photos of the space. Of course, you can just throw up some pictures from your smartphone but potential guests tend to lean towards professional shots that make the place seem inviting.As you start up your Passive Airbnb business, you will encounter several costs along the way. Although it may seem like several steps between you and passive Airbnb rental arbitrage income, it is completely possible for anyone with the right motivation. If you are struggling to come up with the start-up costs, consider starting a side hustle to make it to your goals.How to Use Mashvisor to Find Your Ideal PropertyMashvisor is a great tool to help you research rental properties. Using Mashvisor is a good place to start researching neighborhoods and potential rental prices. Once you have a good idea of what area you want to get started in, dive into the great research Mashvisor can provide about the area.Use this research to help you search for the right Airbnb property for you. The key is to choose your location very carefully, otherwise, your new Airbnb rental may not be as lucrative as you would like.Wrap UpCreating a relatively passive income stream with Airbnb is completely possible. The wealth of information available on Mashvisor, plus any local knowledge you have about the area, can lead you to the right Airbnb rental property.Once you find a potential property, remember to take a careful look at the projected costs before determining whether or not it is a good deal. Also, confirm with the landlord that you are allowed to practice rental arbitrage in their building. If not, just continue searching until you find the right property.This article has been contributed by Sam Zuo from PassiveAirbnb.com Start Your Investment Property Search! START FREE TRIAL CostsGuest BlogsPassive InvestmentsProperty SearchRental Rate 0FacebookTwitterGoogle +PinterestLinkedin Sam ZuoSam Zuo is a serial entrepreneur, writer, and life enthusiast. He started his first mobile app company at the age of 19 and subsequently fell in love with all things digital. He loves to teach and help others. Sam currently teaches people how they can make a 6 figure passive income by using Airbnb. You can contact Sam by visiting his website PassiveAirbnb.com Previous Post Airbnb Properties for Sale: A Guide to Finding the Best One Next Post What Are the Requirements to Buy a House for Investment in 2019? 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