If you are wondering how to make money in real estate, then learn to manage your investment property the right way. To be a successful Airbnb investor, you must know the key aspects of short term rental property management.
Making money in real estate takes some effort unless you are a passive investor. However, when it comes to owning an Airbnb rental, there are aspects that you must take into consideration. The most important one, however, is property management.
As a new real estate investor, you must understand that managing Airbnb rentals is not so easy. In fact, it takes more than just keeping the property clean. So, first, let us talk about the different aspects that come with property management. Then we are going to present the options you have to manage the property for the maximum return.
The Aspects of Short Term Rental Property Management:
Short Term Rental Property Management Aspects: Property Maintenance
Renting out a house on Airbnb means that you are going to have guests coming in and out of your investment property. Especially, considering the fact that Airbnb is a form of short term rentals. This means that you can expect guests coming in and out more frequently. This, of course, requires that you check on it after every visit. Now, it is a given that any real estate property needs maintenance every now and then. However, imagine having guests who had a party the night before they left and to your horror, they broke a few items around the house. Well, that’s what we mean by “more frequent maintenance.” You can never guarantee what type of Airbnb guests you are going to have. Therefore, this is a very important aspect of short term rental property management to take into account.
Short Term Rental Property Management Aspects: Marketing
Marketing is the secret to the best real estate investments. When renting out Airbnb investment properties, your marketing strategy should compliment your goals. Moreover, it must reflect an image of your property that would attract Airbnb guests to it. Sure enough, this comes by making your property appealing to others. Make sure to take professional photos and write a great description that describes an experience rather than factual matters.
Short Term Rental Property Management Aspects: Welcoming the Guests
I guess not everybody is good with socializing. However, putting money in an Airbnb investment property will require some socializing skills. It is not to the extent of sitting and having a conversation, though. But, you must know about hospitality at least a little bit. Your guests want to see more of a humanitarian side to their experience. Even though it is a business, treat it as a way of making friends and interacting with different types of people. The more your guests enjoy themselves, the better reviews you get for your listing. As a result, you will have more people wanting to rent out your property rather than other properties.
Short Term Rental Property Management Aspects: Managing Finances
Managing finances might be the toughest part of the whole Airbnb investment thing. Aside from keeping up with the Airbnb rental income, calculations start before you even purchase an Airbnb investment property. When buying an investment property, an important aspect to consider is the return on investment. This metric calculates the potential of the specific property in the specific location. So, make sure you keep track of that as it is a strong indicator of performance. Otherwise, your property will be underperforming without you being aware of it. This will cause you to lose money instead of making money in real estate.
Short Term Rental Property Management Aspects: Updates
Even though it is a secondary aspect, it is still very important. Every day there are changes in Airbnb regulations. Make sure you keep track of that. As there are Airbnb legal issues in some states, you should keep track with the regulations in your own state. Make sure you are operating legally to prevent any issues that might lead to losing your property.
What Options Do You Have for Short Term Rental Property Management?
If you are a new real estate investor, it might seem challenging to manage the property. However, you have two choices when it comes to that:
Hiring Airbnb Professional Property Management Services:
Professional property management is not always a bad idea. In fact, what could be better than having other professionals taking care of your investments?
Short term rental property management comes in a form that is different from traditional rental property management. With Airbnb, you will have super hosts managing your property in exchange for property management fees. These hosts enjoy the best real estate investments based on their own experience in the field. They know what to do and what to avoid in order to sustain a high Airbnb occupancy rate. Not only that but also they know what to do to boost your Airbnb rental income. After all, professional short term rental property management is there for new investors to succeed in the business.
Becoming a Do-it-yourself Property Manager:
You can always do short term rental property management yourself. But, keep in mind the aspects we have mentioned before. Are you ready to commit to it? Do you have the time to do so in the first place?
If you are a part-time real estate investor, we do not suggest you manage your property yourself. After all, it takes some time and effort to do the job. On the other hand, it makes sense to do it yourself if you dedicate your time to real estate investing. So, really, it is a matter of time and willingness to dedicate the effort. Besides, you can save on property management fees which will help boost your Airbnb rental income, in a way.
Investing in real estate is not so easy. It requires time, effort and commitment. After all, you are looking for ways on how to make money in real estate. Unless you invest what is needed, you are never going to have what you want and achieve the financial independence you are looking to achieve. That is the case with Airbnb investment properties as well. Unless you learn all about short term rental property management, you will not be able to witness any progress in your business.
Learn all about making money in real estate through Airbnb investments through Mashvisor’s blog!