Good old Airbnb, one of the top short-term rental website platforms in the real estate business. It seems like these days, real estate short-term rentals have become a real estate investor’s best friend. Well, second best friend after Mashvisor. Yes, we consider ourselves your best friend.
Why? Because we give you that crucial investment property analysis software that could make or break your pocket. From the state, down to the neighborhood itself, metrics of real estate property evaluation are available at your fingertips with Mashvisor.
If you’re thinking of becoming an Airbnb host, you’re going to want to keep the most profitable investments in mind. Here, we provide you a list of the most profitable Airbnb cities of 2018.
How You’re Getting the Green From Airbnb
What about Airbnb is so profitable anyway? It is agreeable that real estate investing can get costly, but still makes you that cash flow at the end of the day. Renting out on Airbnb is a special case of rental income because of the diversity and uniqueness it brings to the renting game. Here, we listed a couple of reasons why Airbnb is considered one of the most profitable investments.
Say hello to one of the best passive income opportunities. Passive income is income derived from a rental property where you are not actively involved. You are able to manage all things of your Airbnb property through the website itself.
Potential Airbnb guests are able to book through the website, so that means you don’t have to go searching for tenants. All you have to do is make sure your investment property itself is ready to go.
Choosing the Airbnb host route brings about the opportunity to amass more rental income. Charging per night instead of the more tradition rental strategy can bring in more cash.
There will be fluctuation with bookings, but with the right real estate investing tools and strategic financial planning, you’ll be set. Promoting your rental property is one of the most important aspects of Airbnb success. Properly managing the property means maximizing the money flow. The second hack is to find the most profitable Airbnb cities.
The Most Profitable Airbnb Cities in 2018
When money is on the mind, you are going to explore any channel possible to try to maximize that profit. Finding the most profitable Airbnb cities is one step you can take to bring in the extra cash. These are some of the most profitable Airbnb cities to consider when searching for Airbnb investment property.
NASHVILLE, TN
- Nashville is considered one of the most profitable Airbnb cities along with one of the most successful U.S. real estate markets at the moment.
- Has stable legal framework in place for the short-term rental market
- With the city’s industrial growth, prices of housing are still affordable.
- Millions of tourists visit Nashville for its downtown scene. Rich in musical history and events, millions of potential Airbnb guests make their way to the city every year.
- The diversity is unreal. No matter the age group or the lifestyle, worlds will collide. The good kind of collision of course. The kind of collision that makes everyone feel welcome.
- BONUS: this area has NO personal income tax, low unemployment rate, and overall low cost of living.
Related: Why Nashville Investment Properties Are Hot
AUSTIN, TX
- From how popular Airbnb has grown in Austin, hotel revenues actually saw a 10% decrease back in 2015. Airbnb property investors are stealing the customers! We’re not complaining. That is part of the reasons why Austin is one of the most profitable Airbnb cities.
- Austin is known for the hip culture and diverse attractions and events. You know what that means. Tourists galore! A plus? Millennials make up a vast majority of those tourists, and it’s no secret they love the Airbnb experience. It is no surprise Austin is considered one of the most profitable Airbnb cities.
Related: 4 Reasons to Buy Airbnb Investment Property in Austin
PALM SPRINGS, CA
- Sunny skies, huge festivals, and a number of activities are only some of the features that make Palm Springs one of the most profitable Airbnb cities.
- It has been reported that Airbnb property owners in Palm Springs average $400 per day in short-term rental income. Now that is a high average.
- Note: Regulations are constantly evolving and sometimes differ greatly from what residents in other states might be used to.
SEATTLE, WA
- Seattle can be considered a queen of the most profitable Airbnb cities. Diverse geographic features like rain forests, volcanoes, mountains, hot springs, and breathtaking coastlines are only some of this city’s best.
- Downtown is full of museums, restaurants, and unique shopping – making this Seattle Airbnb investment a tourist hotspot. Cultured, eco-aware millennials will love this area.
- A 2015 study showed that Seattle tourism reached record-breaking levels. Talk about a hotspot for the most profitable Airbnb cities!
- Airbnb revenue totals over $2,500 each month! Money, money, money. Music to your ears!
VIRGINIA BEACH, VIRGINIA
- There will be a decent demand for your Airbnb rental here due to military visitors, as Virginia Beach is known for its large military presence.
- Beachgoers flock here during spring break and summer. More customer glow means more demand. You have the supply. Invest in a property to rent out on Airbnb, as it is one of the most profitable Airbnb cities!
- Mortgages aren’t sky high due to the low housing prices.
- A Home.com study supported the idea that Virginia Beach is one of the most profitable Airbnb cities in the U.S. real estate market. It was discovered that Airbnb hosts in Virginia Beach, Virginia can make a whopping $183.33 profit per night. Believe it or not, that is around $100 more than the average U.S. host (bringing in a profit of $99 per night).
Tips & Tricks to Maximize Your Occupancy Rate in the Most Profitable Airbnb Cities and Beyond
Maybe you took our advice and invested in one of the most profitable Airbnb cities on this list. Maybe you chose not to, or couldn’t, and instead stayed just where you are. Either way, maximizing your profit is a task any Airbnb property owner can do, no matter where you are.
Making sure you don’t have high vacancy rates is crucial. What is the point in an investment property if it is going to remain empty? Instead, you want to work on having high occupancy rates. Mashvisor is here to provide you with the projected rate to help you in your crucial decision making.
With Mashvisor real estate analytics and tools like the Airbnb profitability calculator, you are a step closer to making money in real estate. Make that money by being booked to the max. Here are a few ways to maximize your Airbnb occupancy rates:
Related: What Kind of Airbnb Occupancy Rate Can You Expect?
Tip #1: If you have more than 25% of your nights booked 3 months in the future, increase your price!
This is what is considered a ‘good problem’. However, being booked far in advance does require some action. To start, increase your prices dramatically. Then gradually reduce the price each week as your available dates arise. Over time, you’ll get a feel for the demand at each price point.
Tip #2: Airbnb takes note of every price reduction you make and improves your listing’s visibility in return. Reducing your listing price by a couple of dollars can have a huge impact on your listing’s ranking in the Airbnb search results.
Now You Know Where the Most Profitable Airbnb Cities Are: Go Get ‘Em
We’re letting you off into the real world now, so spread those wings and fly. Take your money and put it into one of the most profitable Airbnb cities if you’re in the Airbnb game. It takes baby steps to morphing your techniques as a real estate investor, but we are here to help.
Related: The 5 Most Profitable Airbnb Locations According to Mashvisor’s Investment Property Calculator
Mashvisor is willing to hold your hand the whole way, so don’t be afraid to let us give you a hand. When you do decide to invest in some of the best short-term investments, make sure you give us a visit. We’re ready to deliver.
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