Another hack blog? Not just any. We’ve put together a list of hacks specifically for buying and running an Airbnb vacation rental. Check them out below!
This is the question many real estate investors have been asking, especially with the most recently imposed Airbnb regulations. Most of these regulations restrict Airbnb investors from renting out their investment properties in general or limit the number of days per year they can do so. If you’re concerned about cities where Airbnb is illegal, simply avoid them. Among those are New York City, San Francisco, and Santa Monica. For a more comprehensive list, check out these 5 Cities Where Airbnb Is Illegal in 2019.
When buying an Airbnb investment property, instead of asking “why?” investors should ask “where?” There are still numerous locations across the US where Airbnb is still legal and profitable. It’s no secret that the short term rental market is growing across the nation. Rental income from Airbnb is also on the rise, and there’s great opportunity for investing in short term rental properties.
Hacks for Buying an Airbnb Vacation Rental
Use Mashvisor When Buying an Airbnb Vacation Rental
Life hacks are any tricks or shortcuts that make your life easier. They can cut the time you need to do a task, increase productivity, and provide novel ways to do things. If we have one hack that combines all of the above for buying an Airbnb vacation rental, it’s Mashvisor’s Airbnb profitability calculator. This tool helps you look for investment properties and calculate real estate metrics such as cap rate, cash on cash (CoC) return, cash flow, and expected Airbnb rental income. It can also help you predict what Airbnb occupancy to expect.
When looking for an Airbnb property for sale, using the Airbnb profit calculator can help you make savvy investment decisions in a fraction of the time and effort – the ultimate hack.
Hacks for Running an Airbnb Vacation Rental
Install Digital Locks
This is a good hack to save time or avoid meeting your guests altogether. Set up a digital code lock on the door of your Airbnb rental property, and provide it to your guests once you confirm the booking. This will save time and effort of driving to the rental property to meet your guests and provide them with a key. If you’re worried about the safety of your Airbnb vacation rental, you can change the code in between tenants.
Some guests like to meet their hosts, especially if they’re traveling tourists. Others, however, prefer minimum contact. Make sure to mention that you are available to meet when you communicate with your Airbnb guests and leave it for them to decide.
Link Your Property Description to Upcoming Events
If there are any major events going on, link or mention them in your rental property description. If a guest is looking for lodging for a specific event, your Airbnb property may more likely pop up in search results.
Become a Superhost
It’s easier said than done; but it can definitely be done.
When browsing for an Airbnb vacation rental, guests usually prefer to book rental properties run by Superhosts. Right below a property description, Airbnb.com will indicate if the host is a Superhost. The home-sharing platform defines Superhosts as “experienced, highly rated hosts who are committed to providing great stays for guests.” To become a Superhost, you’d need to invest resources to make sure you impress guests and get good Airbnb reviews. While this may be time-consuming, it’ll pay off in the long run- Superhosts usually achieve higher occupancy rates and make more money!
Spy On (or Get Inspired by) Your Competition
There’s a lot that you can learn from your competitors. If you log in from a user profile and search rental properties near you, you can see your competition’s photos, description, reviews, occupancy, and even how many times the rental property was viewed in the past week.
What does your Airbnb listing look like in comparison? If you see that your competition’s property has been booked 20 days in April, while yours was booked only 10, maybe you’re not living up to the Airbnb standards of the area. Researching competitor Airbnb properties will definitely help you in developing your own.
Add a Sofa Bed
You can add an extra sofa bed, or a futon, in any of the rooms, or in a common area like the living room. When doing so, you can start advertising your rental property for 5 guests instead of 4, and charge more on additional guests. We advise you do this solely if it won’t make your Airbnb investment property too cramped. Never jeopardize the quality of the experience you’re offering for extra cash.
Leave Out Items That Need Extra Cleaning
It’s true that you do have to pay for cleaning services in between guests, but some items lying around the house can cost you extra. Anything like expensive carpets, couches, and nice throw pillows may need special care like dry cleaning. Avoiding them altogether can help you save up on extra cleaning costs on your Airbnb real estate rental property.
Shooting for 100% Occupancy
Every real estate investor wants to achieve 100% Airbnb occupancy and maximize rental income when running an Airbnb vacation rental. But achieving the 100% rate can be quite challenging. To overcome this, start by setting your minimum stay requirement to 1 night as opposed to higher. Know that you will get vacant days in between bookings, especially if you get several 3-day bookings. One hack you can follow is to take reservations as they go, and then work on pricing the single nights differently to give yourself a better chance of having them filled.
There are numerous tips and tricks for buying and running an Airbnb vacation rental online. The above includes less traditional ones that we recommend for succeeding with an Airbnb vacation rental. And remember, while there are several cities where Airbnb isn’t a good real estate investment, there are several others where it is.
Learn more by reading this guide for Airbnb investment properties!
Do you have questions about Mashvisor? Read our FAQs and learn about our tools.