Because Airbnb revenue depends on so many factors (the income property itself, the location, Airbnb reviews, pricing, Airbnb property management, etc.), it can be difficult to know where to start when working to increase Airbnb rental income. That is why we have put together a list of the best ways to increase Airbnb rental income for every real estate investor to benefit from.
Before You Get Started…
If you’re reading this post about Airbnb rental income, you’re likely a real estate investor who has already gotten past the hurdles of financing rental properties and choosing an ideal location for Airbnb rentals. Still, these are two factors that ultimately affect how much rental income a real estate investor can make when renting out a house on Airbnb.
Airbnb rentals have to be in a location that will guarantee good occupancy rates for high Airbnb rental income. In the past, this kind of real estate investing information was not readily available for real estate investors looking to rent out a house on Airbnb. Now, with the help of Mashvisor, you can take a look at locations in any real estate market and see the Airbnb occupancy rate. Real estate investors can even see the average Airbnb rental income for the area as well to help make an informed real estate investing decision.
Besides a location with a good Airbnb occupancy rate, a real estate investor has to be aware of Airbnb laws and Airbnb taxes. If Airbnb laws restrict how many Airbnb rentals you can own or just don’t allow Airbnb rentals altogether, this will obviously put a damper on your Airbnb rental income.
Knowledge of Airbnb taxes will help real estate investors choose a location where the Airbnb taxes will be the least, allowing Airbnb rental income to be put back into the investment property or even be enjoyed as passive income.
Acquiring good financing allows for more of your Airbnb rental income to be used to improve the income property and inherently increase the rental income in different ways. Improve your credit score, shop around for competitive interest rates from mortgage lenders, and choose the best type of financing for your income property. Pay less on monthly mortgage rates, and actually benefit from more of your Airbnb rental income.
How to Increase Airbnb Rental Income
Perfect Your Airbnb Listing
Don’t assume you can just write anything for the listing of short-term rental properties, thinking Airbnb guests treat all listings the same. This just isn’t true and can end up hurting your Airbnb rental income. To make a killing when renting out a house on Airbnb, real estate investors need to know how to attract tenants from the get-go with the Airbnb listing:
- Beware of typos, misinformation about the Airbnb investment property, or boring, unnecessary copy/paste.
- Use headings, bullet point format, or FAQs (Q&A) format over a wall of text.
- Add any information about your Airbnb investment property that will be enticing to Airbnb guests and put you above the competition.
- Use beautiful pictures to tell the story of your Airbnb investment property. Consider Airbnb’s offer for free professional photography.
- Change the listing to appeal to different types of Airbnb guests during the changing seasons of the year and list the income property year round.
If you still aren’t sure where to start, check out the competing listings of Airbnb rentals and see what they’re doing right. Start making money in real estate from your short-term rental properties today by perfecting the listing.
Market Airbnb Rentals to All Kinds of Guests
Don’t miss out on large sources of Airbnb rental income by limiting the types of Airbnb guests you market to. For example, families with children and pets are sometimes unwelcomed in other short-term rental properties. If you need the extra Airbnb revenue, consider appealing to them in the listing.
Business people are guests Airbnb property management can count on all year round to book the income property. Investigate what amenities they need/prefer and provide them (within reason).
Find a way to accommodate more Airbnb guests at once. Many people travel in groups, and being able to stay in one place can be more important than forfeiting a bed for a pull out couch or sofa bed.
Booking Should Be a Breeze for Airbnb Guests
Making money in real estate starts with getting tenants. If Airbnb guests have any trouble booking your Airbnb rentals, they will move on to the next best thing without a second thought. Optimize the process of booking for your Airbnb guests. This will increase booking for your Airbnb rentals, thereby increasing Airbnb revenue.
The Right Price
Pricing Airbnb rentals can be somewhat confusing, especially since owning an Airbnb means you can price it however you choose. But, to increase booking for an Airbnb, there must be some kind of right price.
The first and most important tip that will help boost Airbnb rental income is to check out the pricing of other Airbnb rentals in the same location. Real estate investors have two options for this: sift through listings on Airbnb’s website or use Mashvisor. Using both can help you discover what will be the optimal price for your short-term rental properties.
Click here to find other Airbnb rentals in your location for price comparison.
Other tips for pricing are:
- Don’t expect a set-in-stone price to help increase Airbnb rental income. Some times of the week, month, and year coincide with higher demand for Airbnb rentals. Increase the price at these times when renting out a house on Airbnb.
- Some real estate investors find success when charging less during these times as well. This can work if short-term rental properties see more Airbnb guests, allowing for profit. (Be careful: Do the math as fully booking at a lower price may mean losing out on Airbnb rental income.)
Consider Professional Property Management
Property management is a big part of real estate investing, boosting real estate income, and getting a good return on investment. There are things you can do when owning an Airbnb rental to make sure guests leave raving Airbnb reviews about your property management.
One unique option is finding time to be a guide for Airbnb guests (this can be done by professional property management as well). Give them a special experience in the city that a tourist would otherwise have trouble discovering on his/her own. Another idea is a nice welcome basket which often is mentioned in the Airbnb reviews guests leave!
If Airbnb property management doesn’t appeal to you, and you’d rather stick to real estate investing, consider professional property management. Professional property management will be responsible for doing everything to increase occupancy rate and Airbnb rental income. Research professional property management companies before hiring one to make sure they are worth the small sacrifice in return on investment.
Don’t Underestimate Airbnb Reviews
Speaking of raving Airbnb reviews, don’t overlook or ignore Airbnb reviews left by your guests. Anyone in the Airbnb property management business has experienced negative Airbnb reviews; don’t let these discourage you. It’s still a good idea to dig into some of these negative Airbnb reviews and identify if there are actual issues with the income property or Airbnb property management, as opposed to just a case of preferences that can’t be accommodated.
Remember to encourage guests (especially those who leave satisfied with the Airbnb property management and experience) to leave Airbnb reviews. This will ultimately bring in more Airbnb rental income for a better return on investment.
Make Improvements to Airbnb Rentals
Many times, in real estate investing, to achieve a positive cash flow from an income property, real estate investors have to spend money. An Airbnb investment property is no different. Improvements to an Airbnb investment property can make a world of difference in Airbnb rental income and return on investment.
The first step to deciding what improvements need to be made on Airbnb rentals is to clearly define your target guests. While Airbnb property management should market to/accept all kinds of Airbnb guests, the location probably sees an overwhelming amount of one type of tenant. Find out what that is and what they need.
Next, set a rigid budget for improvements on the income property. The biggest mistake a real estate investor can make is spending way too much on improvements that don’t help the return on investment and thus decrease positive cash flow. Improvements to consider can range from new carpet and fresh paint to new floors and fixtures. Just be sure to stick to the set budget.
Invest in More Airbnb Rentals
Once you feel you’ve mastered all of the tips on this list, the final way to increase Airbnb rental income is to invest in more Airbnb rentals. One more Airbnb investment property added to your real estate investment portfolio can mean more positive cash flow and rental income. Use professional property management to make this strategy easier.
Click here to find short-term rental properties that promise a great return on investment.
These are the best ways to increase Airbnb rental income. Any real estate investor willing to put in the time and effort (and sometimes money) can enjoy high Airbnb rental income. There are no quick fixes. It will take time to see a great return on investment from your income property through rental income. Follow the tips that best apply to your Airbnb rentals and increase your return on investment.