Making money with Airbnb to quit your job… Is it even possible? Yes! It’s very possible. Airbnb real estate investing is a great way to make money in real estate and to achieve financial freedom. Read through this blog to find out how you can do just that!
Treat It as a Business
This is your number one rule. Do not treat it as a side-gig, or that’s what it will be. Just as you would with any other business, you need to plan, research, manage, and sort out your finances to ensure you have a high Airbnb profit margin. It doesn’t have to be fun – it can be, but it’s a job at the end of the day. This will help you better manage your Airbnb investment.
Buy a Rental Property
This is much easier said than done. If you’re considering renting out that spare room on Airbnb, this blog is not for you. To be making (enough) money with Airbnb, you need to invest in a rental property.
There are several things to consider when purchasing an Airbnb investment property. These include price, location, expected rental income, and profit. Buying a rental property in a good location will help with bookings and the Airbnb occupancy rate; the better your location, the more likely guests are to book it.
Moreover, make sure you run some Airbnb analytics and Airbnb investment analysis before you buy the property. You want a rental property that will generate positive cash flow. Mashvisor can help you find Airbnb investment properties in your area of choice. Our Airbnb profit calculator allows you to browse through properties for sale in different cities and neighborhoods and will provide you with comparative data on expected rental income, cash on cash return, cap rate, as well as several other real estate indicators. This will help you find investment properties that will help you in making money with Airbnb.
Start looking for and analyzing the best Airbnb investment property in your city and neighborhood of choice.
Always Have a Back-Up Host
It’s very important to avoid booking cancellations when owning an Airbnb. So ask a trusted friend or family member in the area to be your “back-up host.” This means that any time you’re out of town for whatever reason, or if you have a sudden emergency, they can step in and be the host for your Airbnb rental property.
Know Your Target Market
Who are you catering to as an Airbnb investor? Are you targeting businessmen, tourists, or everyone? This will, in turn, determine how you market and price your investment property. A good way to be making money with Airbnb is to try to cater to everyone to ensure you’re always booked – keeping your Airbnb occupancy rate high.
Try to Have Back to Back Bookings, But Be Prepared!
This is the key to making money with Airbnb. You make your money through bookings – so make sure you’re always booked! But if you have back-to-back bookings, you should be prepared for it. What does this mean? This means you need at least two of everything: two sets of sheets, two things of toilet paper, two bottles of shampoos. You want your stock to be full – this is a money and time-saving tip.
Don’t Use Airbnb’s “Smart Pricing” Feature
Many Airbnb investors report that the “Smart Pricing” feature doesn’t work too well, that the prices often end up being set too high or too low. Instead, set your own price for the listing. Do some research on the best pricing methods, and look at your competition and similar properties in your area (Airbnb comps). What are they priced like? And make sure you stay within that range, because:
- Set your price too high, and you won’t get booked enough
- Set it too low and you’re not making as much as you could be
Finally, keep up with the latest events and special holidays in your area and adjust the price accordingly. You can increase the price of your listing during those times, as people will be willing to pay the extra price which in turn will be helping you with making money with Airbnb.
Keep Track of Your Airbnb Revenue and Expenses
At the end of the day, this is what your profit comes down to when investing in Airbnb. Your profit is whatever money you’re making off of your rental property, minus any expenses that you may incur. Your expenses can include anything from your mortgage payments to cleaning fees to restocking snacks in the property.
To maximize your profit and build wealth from Airbnb real estate investing, think of ways you can cut down on expenses. Another trick many Airbnb hosts do is that they add cleaning fees to the Airbnb booking site. So when checking out, the guest also agrees to pay a portion of the cleaning fee.
Spend Time on Your Listing Page
This one’s really important. People spend a lot of time browsing through different Airbnb rental properties. What does this tell you? That your listing page should look nice and appealing to guests. Take good quality photos, making the rental property look appealing so you can attract Airbnb guests. Additionally, try to draft a nice, thorough description of the property.
Don’t just write: “central apartment, equipped with all amenities.”
Instead, write: “central apartment, with nice, calm interior. A 2-minute walk from the nearest subway stations, a 5-minute walk from a major supermarket, and a 10-minute walk from X attraction.”
Make sure that whatever information you’re providing on this page is accurate. Accuracy is an important measure for Airbnb reviews. Speaking of, make sure you get and encourage good reviews. This can eventually help you become a super-host, which will, in turn, allow you to increase your bookings for your rental property.
Making Money with Airbnb Can Be Done!
Making money with Airbnb is not too challenging. But if you want to do it well enough to build wealth and quit your day job, you have to dedicate your time and efforts to doing just that. Again, treat this as you would any other business. And finally, don’t actually quit your job unless you feel like you financially can.
If you put in the time and effort, this can be a very successful real estate investment.