Mashvisor is known for encouraging beginners to start investing in Airbnb property. This is because Airbnb has proven to be one of the best ventures in real estate. Throughout the years, we have seen so many people starting their real estate careers with short-term rental properties, and they ended up building wealth as a result.
Although for a beginner, it might seem hard to get started in Airbnb real estate investing, I am here to tell you the opposite. In fact, if you do what you need to do before buying property for Airbnb, once you start renting it out, the process will go smoothly.
To help you out, I will tell you exactly how to start an Airbnb business if you have no knowledge, no experience, or even no resources whatsoever. So, let’s get right into it!
#1. A Proper Real Estate Education
Airbnb rental properties are the easiest to invest in if you take the time to educate yourself a little bit about how to buy an income property and what commitments come with it. To make it easier for you, here is what you need to learn about:
How to Buy Vacation Rental Property That Is Profitable
Buying an Airbnb rental property is about the profitability of the property and not about whether you like the design or the view. Therefore, when you are out there looking for potential Airbnb investment properties, you should learn to perform the following procedures using Airbnb analytics:
- A real estate investment analysis including a thorough analysis of the Airbnb return on investment.
- A full real estate market analysis which means you will have to observe the market’s fluctuations, Airbnb rental data and the average Airbnb occupancy rate in certain locations.
- A comparative market analysis is another way to measure profitability that comes with investing in Airbnb property. It is merely the process of comparing an Airbnb investment property of your choice to others within the same location. For a comparative analysis, you are comparing property value, potential rental income, and other return on investment measures. In other words, it serves as a predictive profitability analysis.
Airbnb Hosting & Guests
Another aspect you want to educate yourself on when investing in Airbnb property is hosting and Airbnb guests. First of all, you will need to tap into the experience of other Airbnb hosts and see how they deal with being an Airbnb landlord, how the process of choosing the right guests works for them, and how they handle bad guests. Also, find out what Airbnb reviews are and how they can make you or break you in this rental property business. In this way, you can prepare for most of the potential setbacks and avoid losing money in every way possible.
Airbnb Property Management
Owning an Airbnb investment property comes with various tasks. From welcoming guests, to collecting the rent to property maintenance and more- all are associated with investing in Airbnb property. Therefore, it is essential to learn about it in order to decide if you really want to be involved with an Airbnb rental property, to begin with. Of course, to make it easier for you, we have more to say about this topic so wait for #4 on things you need to start investing in Airbnb property.
Airbnb Legal Matters
It is no secret that there are Airbnb legal issues in some locations. So, when you are looking into locations, make sure to check Airbnb regulations to see if it’s legal in the first place and if so, are there any restrictions that apply? In this way, you will always end up saving your time and money by avoiding unnecessary headaches.
Investment Property Financing
Finally, and most importantly, learn as much as you can about investment property financing. Here’s the thing, many aspiring real estate investors get discouraged because they think that investing in Airbnb property isn’t available to them due to lack of money. That is, in fact, wrong on all levels. There are so many financing methods that a beginner can choose from no matter which of the investment strategies in the business he/she goes for. For this purpose, we have plenty of blog posts dedicated to investment property financing. So, if you want to start investing in Airbnb property with little capital, check out our real estate investment blog for more articles on the subject.
#2. A Real Estate Agent
Knowledge is not the only thing you’ll need when investing in Airbnb property. As a beginner property investor, you will need to work with people with expertise in the field. So, you’ll need to hire a real estate agent. A real estate agent who has been in the business for some time will have the skill set to find lucrative opportunities in the real estate market. To know what to look for in an agent, read What to Look For to Find the Best Real Estate Agent for Buying an Investment Property. Moreover, you can go straight to our agent directory and start looking for the top performing real estate agents in your desired location.
#3. The Right Tools
When investing in Airbnb property, you will deal with so many numbers which are essential to determining the profitability of your rental. Therefore, for accurate calculations, you will need to tap into real estate investment tools such as the Airbnb profit calculator. This tool will perform all of the math associated with the Airbnb investment property. Moreover, it will analyze the market and find out what future trends you should expect as an Airbnb investor.
#4. Short-Term Rental Property Management
We have already discussed the issue of tasks which come with an Airbnb investment property which you might or might not be able to deal with. Therefore, in this section, we wanted to introduce you to professional property management for short-term rental properties.
Many real estate investors choose not to get involved in the daily operations of their Airbnb investment properties. Therefore, for these investors, there are Airbnb super hosts who will take matters into their own hands. You can find these property managers on the official site for Airbnb, and you can expect to share a few bucks with them.
#5. A Real Estate Platform
Airbnb.com is the obvious platform for marketing your rental property. However, what about real estate education, finding a lucrative investment property, finding the right real estate agent, or even getting access to all the must-have investment tools? A proper Airbnb analytics platform is what you need for investing in Airbnb property. As always, we have got your back on this one. Investing in Airbnb property is made easy by platforms such as Mashvisor. So, to learn about your options for signing up for our services, click here.