Airbnb RentalsInvest in Airbnb – It’s 100% Worth the Investment by Mays Kuhail January 14, 2020January 7, 2020 by Mays Kuhail January 14, 2020January 7, 2020In the past few years, Airbnb real estate investing has been the investment strategy. The home-sharing service has grown significantly nationwide. And this growth has come with an increased number of users, as well as real estate investors hoping to invest in Airbnb. The real question though is: Is Airbnb worth the investment?100% yes!Why You Should Invest in Airbnb in 2020#1. It’s a profitable real estate investmentThis one is pretty obvious, but that’s what real estate investors strive to achieve at the end of the day, isn’t it?Depending on your rental occupancy rate and area, it can even be more profitable than traditional investments. Airbnb rentals allow you to charge more per night when you average it against traditional rental properties.For an accurate estimate of how much you could be making with an Airbnb rental strategy, check out Mashvisor’s heatmap. Search for a city or neighborhood and you’ll get the average Airbnb rental income, cash on cash return, and average Airbnb occupancy rate for any area in the US housing market.Mashvisor’s Heatmap Analysis ToolRelated: How Much Money Can You Make from Airbnb Real Estate Investing?#2. If you invest in Airbnb, you can use the rental property in more than one wayAirbnb is a good investment because it has a dual-use. When you’re not renting out your Airbnb, you can use it as your own vacation rental home when you go on vacation or business. This can be especially beneficial when your Airbnb rental property is out of state. If you need your short-term rental property for personal use, simply block the dates on Airbnb, and you should be ready to go.#3. You’ll be exposed to different cultural experiencesYou experience numerous cultures when you become an Airbnb host. You get to hear many stories from travelers and meet all kinds of people. Some real estate investors like to personally check in with their Airbnb guests, and even pass by the rental property to make sure all is well with their guests. If on the other hand, you like to keep to yourself, you can also do just that. In this case, consider installing digital locks, and print out a “property instructions” paper. Be sure to communicate all necessary information with guests well before the date of the stay.#4. You can earn passive income from an Airbnb rental propertyIf you invest in Airbnb, you have the choice to make it an active real estate investment or a passive real estate investment. If you want the above-mentioned benefit of cultural experiences, then learn how to become an Airbnb host yourself. If you wish to know how to passively invest in Airbnb, the answer is simple: hire a professional. Just be sure to work out the costs beforehand to ensure you still end up with positive cash flow.Related: Airbnb Rental Property Management: A Must or a Waste of Your Money?Things to Consider When Buying an Airbnb Property#1. 2020 Airbnb trends2020 has just started, but the year’s trends have already begun to emerge. Keep in mind the following 2020 Airbnb trends when buying and owning an Airbnb investment, and manage your income property accordingly:Guests’ expectations are higher for short-term rentals. Airbnb used to be more about a place to stay for a night or two- an experience focused on convenience over appeal. Today, it’s more about the trendy Airbnbs that are all over the platform, and everyone from celebrities, to influencers, to your regular guest, are all looking into more hip Airbnbs to experience something out of the ordinary.Pet-friendly Airbnbs are becoming more popular. The fewer restrictions you set for your guests, the better their experience will be. So consider turning your Airbnb rental property into a pet-friendly one to attract and please more guests.Airbnb bookings in the US may surpass those of hotels. This is an opportunity for anyone considering to invest in Airbnb in 2020, and another reason why the Airbnb investment strategy is 100% worth it!Make sure to stay up to date on Airbnb trends as we move forward in 2020, and try to incorporate as much as you can in your own investment property to make money with Airbnb.#2. Legal issues and Airbnb regulationsIf there’s one thing to stay on the lookout for when it comes to Airbnb investments, it’s the legal aspects. Laws and regulations for Airbnb vary between one state and another, so make sure you stay up to date on the latest changes to laws and regulations in your area.#3. Airbnb costsWhen you invest in Airbnb rental property, you have to bear in mind all the costs that you may incur. When calculating your expected rental profit, you should subtract the cost from the revenue you make.You’ll have two types of costs:Upfront (or one time costs) – which could include the down payment for the investment property, buying furniture (TV, couches, beds, etc.), installing digital locks, and painting the property.Recurring costs – these include mortgage payments, restocking food and toiletries, cleaning fees, internet or Wi-Fi, etc.When possible, try to decrease your Airbnb costs, keeping in mind not to jeopardize the quality of the experience you’re offering.#4. Airbnb pricingWhen it comes to pricing your Airbnb property, you have to keep a few things in mind. First of all, check the prices of similar and competitor properties in your neighborhood and city (Airbnb comps). Try to set the price within the available range, and only go above if you’re truly providing exceptional experiences in your rental property. Another thing to consider is seasonal pricing – during the summertime, and any seasonal events, Airbnb investors often bump up their prices. When planning out your real estate investment, make sure to use a calendar and mark down the dates where you’d need to increase and decrease the price of your Airbnb rental.Airbnb also has the Airbnb pricing tool, a feature on the website that analyzes the market for short-term rental properties, competitor prices, and sets and adjusts the price for you. And while the tool is helpful, users report that it can sometimes underprice a property, reducing your Airbnb profit margin at the end of every month.Related: Four Things to Consider Before Purchasing an Airbnb Investment PropertyHow to Find the Best Airbnb Investment Properties in 2020Finding a profitable Airbnb investment property is not the easiest task, but we’ve got you covered…When you’re figuring out how to invest in Airbnb, you should start with our Airbnb heatmap, which will show you where the most profitable investments are in an area of your choice thereby helping you to determine the best places to invest in Airbnb.To find the ideal Airbnb investment, use Mashvisor’s Property Finder – a real estate investment tool you can use to search for properties within a range of criteria and filters that you set based on your needs and your budget. The tool will show you the best investment property listings in your area, based on the Airbnb occupancy rate and Airbnb return on investment (ROI). Find a Profitable Airbnb Investment PropertyOnce you find a few good options, use Mashvisor’s Airbnb profit calculator to analyze each one in-depth within minutes using Airbnb data and Airbnb analytics. The Airbnb calculator is a real estate investing tool that grants you access to properties with detailed data on expected Airbnb cash flow, Airbnb cash on cash return, Airbnb cap rate, among other important indicators in real estate.2020 will not be the year the home-sharing platform slows down. It’s quite the opposite. So do not wait any longer if you’re considering to invest in Airbnb property. Start Your Investment Property Search! START FREE TRIAL Airbnb RegulationsHeatmapInvestment CalculatorPassive InvestmentsProperty FinderProperty Search 0FacebookTwitterGoogle +PinterestLinkedin Mays KuhailMays is Content Writer with over two years of experience in the US real estate market analysis. She holds a BA in Business Administration and a minor in Marketing with a concentration in HRM. Mays has worked in digital and social media marketing, community development, and program management. 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