Airbnb Rentals How to Make Money with Airbnb in 2020 by Yassine Ugazu January 22, 2020January 13, 2020 by Yassine Ugazu January 22, 2020January 13, 2020 Buying a property for Airbnb is one of the most profitable real estate investment strategies that you could implement. Short-term rentals yield higher rental income than traditional ones and the Airbnb profit margin you stand to make is substantial. But like everything in real estate, making money with Airbnb is predicated on having a good understanding of how the housing market works. With this in mind, how to make money with Airbnb in 2020? And what are the most effective strategies to generate high Airbnb rental income in this year’s housing market? In this blog, we will break down some of these strategies and introduce you to the real estate investment tools that will help you generate a high Airbnb return on investment. Airbnb 2020 Outlook Airbnb rentals have been steadily growing for several years now. The convenience that these accommodations provide has made them the go-to option for travelers from all walks of life. But what does 2020 hold for Airbnb? You will be glad to know that there are several encouraging trends that suggest Airbnb will continue its expansion. Here are some of them: Airbnb is planning to go public in 2020. This development bodes well for Airbnb hosts since it will lead to further growth for the platform. The company expects significant growth in its revenue as well as the overall number of Airbnb guests. An increasing number of jurisdictions are taking steps towards legalizing short-term rentals and clearing up the legal ambiguity that surrounds Airbnb rental properties. The next section will delve into the tips and steps that you need to take in order to make money with Airbnb in 2020. How to Make Money with Airbnb: 4 Tips As we mentioned earlier, becoming an Airbnb host is a smart move in 2020. However, this does not mean profit is guaranteed. In fact, operating a profitable Airbnb investment property requires a certain level of know-how and adaptability to new challenges. Moreover, real estate investors who fail to implement a coherent Airbnb business plan are likely to incur crippling losses early on. The tips below should help illuminate the path toward making money with Airbnb. 1- Pick a location that has a favorable regulatory framework for Airbnb The first step of making money with Airbnb is picking a location that is suitable for short-term rental properties. In fact, one of the biggest challenges that hosts are faced with is restrictive or ambiguous Airbnb regulations. Some jurisdictions impose complex zoning laws whereas others outright prohibit non-owner occupied rentals. Furthermore, certain counties have made no effort to clarify the legal status of the activity, leaving Airbnb hosts in a constant state of uncertainty. This is why it is essential to invest in Airbnb in areas where short-term rentals are explicitly legal. Here are some examples that are worth considering: Park City real estate market in Utah Palms Springs real estate market in California Scottsdale real estate market in Arizona Once you pick your location, make sure to check the requirements for operating an Airbnb rental. There might be some specific licenses that you need to apply for and not getting them might result in hefty fines. Related: 20 Most Profitable Airbnb Locations in 2020: Cash on Cash Return 2- Use online real estate investing tools to identify a profitable Airbnb rental property Thanks to the emergence of online real estate investing tools, finding profitable rental properties has never been easier. For example, Mashvisor puts at your disposal a wide range of tools that help streamline the Airbnb real estate investing process. Below is a brief overview of these solutions: The Airbnb Heatmap: This is one of the most convenient tools that you can use for your Airbnb investment property search. As the name suggests, this feature allows you to identify the top-performing neighborhoods with Airbnb properties for sale on a map. The Property Finder: This tool employs advanced AI and takes into consideration a host of social and behavioral patterns in order to show you Airbnb property with the highest return on investment that accurately matches your criteria. The Airbnb Profit Calculator: Using an Airbnb calculator is crucial to making money with Airbnb. Mashvisor’s calculator helps you determine important Airbnb data such as the average Airbnb income that you can expect as well as the Airbnb occupancy rate. Start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after. Get 20% Off Now Related: Airbnb Rentals: Finding Income Properties Using a Heatmap 3- Optimize your Airbnb rental listing A critical step in learning how to become an Airbnb host is figuring out how to put your rental property in front of the ideal guests. As competition on the Airbnb platform becomes more fierce, optimizing your listings is essential if you want to stand out. There are several steps you can take in order to achieve better visibility for your Airbnb property. The following tips should help you optimize your listings in a simple and effective manner: Use captivating photos: This is the most effective way to boost engagement and improve your position in the search results. Write detailed descriptions: A well-structured description makes your listing appear more professional to potential guests. Moreover, Airbnb’s algorithms prioritize listings with good descriptions. Work on your listings as quickly as possible: It is important to note that Airbnb favors new listings in their search results. To capitalize on this fact, start optimizing your listings the moment you post them. Related: How to Improve Your Airbnb Listing to Get More Bookings 4- Explore Airbnb arbitrage opportunities Rental arbitrage is a strategy that is worth exploring for your Airbnb business. This approach involves renting a property and subletting it to other guests. Your profit, in this case, is the difference between what you are paying your landlord and what you are charging the short-stay tenants. The obvious benefit of implementing this rental strategy is that you won’t have to invest in a property. However, executing a successful arbitrage strategy does require quite a bit of leg work. The steps below illustrate how rental arbitrage works. Check the legal status of subletting in the area before you start. Find profitable rental properties to rent out. The Airbnb profit calculator can help you narrow the search down to high-rental income homes. Inform your landlord. Estimate your start-up costs. List your property on the Airbnb platform. Scale the operation the moment you start making money with Airbnb. Get Started Making Money with Airbnb Figuring out how to make money with Airbnb might appear challenging on its surface. But in reality, the process becomes simple once you grasp the concepts of market research, proper strategy implementation, and Airbnb analytics. It might be a slow build, but once you get a firm understanding of what works and what doesn’t and the positive Airbnb reviews start rolling in, your business will start thriving. Start Your Investment Property Search! START FREE TRIAL Investor ToolsLocationMaking MoneyMarketingProperty Search 0 FacebookTwitterGoogle +PinterestLinkedin Yassine Ugazu Yassine is a versatile content writer who enjoys crafting compelling copies and articles about the various facets of real estate. Previous Post 10 Warning Signs of a Bad Real Estate Agent Next Post How Can I Sell My House Fast for Market Value? Related Posts How to Achieve Positive Cash Flow with Airbnb Rental Properties Should You Be Investing in Orlando Real Estate Investment Properties in Early 2018? 5 Things You Need to Do to Boost Your Airbnb Reviews The Beginner’s Guide to The Airbnb Investment Property Airbnb Pricing: How Much to Charge for Rent How to Find the Best Vacation Rentals for Sale Should You Use Airbnb Smart Pricing? 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