How to Get Started in Real Estate with an Airbnb Investment
An Airbnb investment property refers to when a property is bought and listed on the online platform, Airbnb, so as to be used as a short-term rental. The hosts can provide short-term rental services on apartments, vacation rentals, a shared or a private room, couches, and homestays with basic amenities. Travelers and guests are able to search for places that are affordable for them to stay in for a short period of time.
Airbnb has become prominent over the years as a great way to start a real estate investment career due to its potential for making greater returns compared to traditional rentals. If you are thinking of how to make money in real estate, Airbnb investment can be a lucrative option. With Airbnb, you don’t need to own a rental apartment to start your investment. Even without owning a rental apartment, you can join if you have an unoccupied basement, rooftop or spare room in your house. Here are some tips on how to get started in real estate with an Airbnb investment.
Things to Consider Before Investing in Airbnb Real Estate
Before we get into how to get started in real estate with an Airbnb investment, there are a number of things to consider before pursuing the investment.
Being an active Airbnb investor means that you will have more work since you will be the host as well as the property manager. Unlike traditional rentals which often require maintenance only once in a while, owning an Airbnb is a service business and does not provide passive income. You need to have time to provide the hosting services by taking care of bookings, providing amenities, furniture, supplies, and guidelines to living in the investment property. However, if you don’t have the time, you can decide to be a passive investor by hiring an Airbnb property management company. This way, you won’t have to manage the Airbnb investment yourself.
Before you decide on how to get started in real estate by pursuing Airbnb, you ought to be aware of the laws of your city with regards to short-term rentals. For instance, the law may demand that you register, gain a license, or pay certain taxes. Understanding local laws and regulations regarding vacation home rentals will help you avoid violations that may put you in trouble. This may be challenging since laws may change with time.
How Do You Get Started in Real Estate with an Airbnb Investment?
After ensuring that you are ready to invest in Airbnb, you can now go into how to get started in real estate with Airbnb investment. The following are some tips to get you started.
Any established real estate investor who knows how to get into real estate attests to the importance of research. Getting started in real estate as an Airbnb host will require some research on your part. As a new host who is still unfamiliar with how to get started in real estate, you are probably going to overlook this part or not handle it with the seriousness it deserves. However, in order for you to enhance your rental strategy with Airbnb real estate, you will need to research your target audience. Have knowledge of the kind of people that visit the area as well as their interests. This will help you appropriate preparations, market your listing to them better, and gain their interest.
You also need to research your competition. The main things to consider when competing on Airbnb is location and pricing. For you to provide prospects with an incentive so that they pick your listing over those that are already in the market and well known, you will have to set lower prices. Moreover, having a great location as a new host in the market will give you a competitive edge. Location is more critical to the success of an Airbnb investment property since tourists often look for popular places that are close to attractions and other essentials like good public transportation. If the location is not that great, you can make up for it by offering special amenities and other helpful services.
You can also make use of predictive analytics to have a better understanding of the Airbnb market regarding different aspects such as seasonality trends, Airbnb occupancy rate, expected returns, and more. Such analytics will help you find the best place to buy vacation rental property. For instance, you can use an Airbnb profit calculator to project expected returns. Search on Mashvisor to find Airbnb investment properties that have high returns.
Create an account
Starting a real estate business with Airbnb will require that you first download the Airbnb app or visit the Airbnb website and create an account. You will need to enter some information about yourself, the short-term rentals you will offer, the price and the amenities included. It is important that your profile is captivating and well described. Your profile is the first thing that prospective tenants will see and it is a chance to convince them to choose your investment property over the others in the market. Also, provide professional and enchanting pictures that show the unique features of your rental property. It is also important that you have enough reviews if you want more bookings. So, be sure to request that tenants leave Airbnb reviews after a stay.
Manage your property
Airbnb property management is also a key aspect to focus on when trying to understand how to get started in real estate with Airbnb investment. After creating your Airbnb account and listing, you need to manage the property by continually checking on the property’s tidiness, amenities, condition, ensuring it is ready for Airbnb guests, and staying in contact with potential guests. Managing all aspects of an Airbnb investment requires a lot of effort and time. You can choose to do it by hiring professional property management companies or manage the Airbnb property yourself. Good management of your property will lead to good feedback and reviews, which will, in turn, improve the occupancy rate of your property.
How to get started in real estate with an Airbnb rental property is not that complicated once you know the process and understand the market. Buying an investment property will need adequate research, time and effort in order for you to find success investing in real estate. Use Mashvisor’s tools and insights to learn more about how to start a real estate business.