Airbnb Rentals How to Maximize Your Airbnb Income in 2021 by Charles Mburugu February 26, 2021February 14, 2021 by Charles Mburugu February 26, 2021February 14, 2021 Vacation rentals have become increasingly popular among travelers all over the world. Platforms like VRBO, HomeAway, Vacasa, Booking.com, FlipKey, Hotels.com, Domio, and Home Exchange have made booking a short-term rental very easy. However, all these pale in comparison to Airbnb. With a presence in more than 100,000 cities in over 220 countries, Airbnb is the most popular short-term rental platform. There are over 5.6 million active Airbnb listings, with the United States having the most listings. Thus, if you want to make good returns in real estate, consider investing in an Airbnb investment property. Statistics show that in 2019, Airbnb had 187 million bookings and generated $4.7 billion in revenue. Due to Coronavirus-related travel restrictions and stay-at-home orders, Airbnb rentals experienced a sharp decline in bookings during 2020. However, with the release of the Covid-19 vaccine, Airbnb is expected to rebound and generate more revenue than ever before. Besides making a good return on investment, owning an Airbnb rental also allows you to enjoy Airbnb tax deductions. Whether you already own an Airbnb investment property or are planning to buy one, you need to learn strategies to increase your Airbnb income. How to maximize your Airbnb income 1. Choose the right location The first step of Airbnb market research is finding the most profitable Airbnb locations for investment. Where you choose to buy an Airbnb rental property will determine your occupancy rate and daily rate – and, in turn, your return on investment. To start with, you can check out the 8 best cities for Airbnb investment in 2021. Once you’ve selected a city, in order to find the 8 best neighborhoods to invest in Airbnb in 2021, you can use Mashvisor’s real estate heatmap. This tool uses property data and predictive analytics to show the average performance of rental properties in different areas. You can filter your search using the following metrics: Listing price Airbnb cash on cash return Airbnb rental income Airbnb occupancy rate To take advantage of this handy tool, start out your 7-day free trial with Mashvisor now. Once you’ve found the ideal location, you can use Mashvisor’s Property Finder tool to look for properties that fit your investment criteria. This search tool comes with a wide range of interactive filters including budget, location, miles from location, rental strategy, property type, number of bathrooms, and number of bedrooms. Meanwhile, if you are interested in off market properties, try the Mashvisor Property Marketplace, which has similar functionalities. To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo. 2. Analyze properties using Mashvisor’s Airbnb income estimator As the name suggests, the Airbnb estimator is a tool that helps you estimate Airbnb income. Also referred to as the Airbnb income calculator, this real estate investment software uses predictive Airbnb analytics and reliable Airbnb data to analyze the profitability of investment properties. The Airbnb data you will find on this calculator includes: Airbnb rental income Airbnb occupancy rate Airbnb cash on cash return Airbnb cash flow Airbnb cap rate One-time startup costs Recurring rental expenses Airbnb rental comps Financing method The Airbnb income estimator is not only reliable and accurate in Airbnb investment analysis, but is also highly responsive and interactive. This allows you to adjust your analysis according to any additional real estate data you might have. Find a Profitable Airbnb Investment Property Related: Buying an Airbnb? Use an Airbnb Income Estimator 3. Have an effective pricing strategy Your Pricing Strategy Is Key for Maximizing Airbnb Income in 2021 Your pricing strategy will determine not only how much you earn, but also the types of guests and reviews your listing will attract. The Airbnb income estimator will give you a good idea of what Airbnb daily rate you should charge for your rental property. You should also check the prices set by other Airbnb hosts in your area to make sure that your rate is competitive. One way to maximize your revenue is to set a minimum number of nights per stay for your rental. However, don’t have a one-size-fits-all pricing strategy. To ensure high occupancy rates which will help maximize your income, you should customize your prices according to the season. For example, if there will be a major concert, conference, or festival in your area, there will probably be a high demand. You can therefore raise your prices to take advantage of the opportunity. Related: Should You Use Airbnb Smart Pricing? 4. Target domestic guests With the coronavirus pandemic being far from over, there is still a decline in travel. Very few international tourists are willing to go out of their countries. However, travelers will still want to take vacations locally, whether in a nearby state or within their own area. You should therefore adjust your marketing strategy in order to attract domestic travelers. Start by listing and advertising your rental on the most popular national channels. This could be social media platforms, websites, newspapers, or even radio. In your description, mention that your rental property is fully compliant with the Airbnb health and safety requirements. If you offer free parking, mention it as well since most people will travel by car. Finally, be sure to recommend local experiences that your guests can enjoy during their visit. 5. Highlight all your amenities The amenities offered in your Airbnb rental will make you stand out and enhance your chances of getting more bookings. Therefore, be sure to highlight all these amenities in your rental listing description. This could be things like ceiling fans, heating and air conditioning, free and fast WiFi, fireplace, cable TV, free parking, and full kitchen. If you provide bed linen and towels, or daily cleaning services, mention it in the description. 6. Improve your marketing Having a solid marketing strategy can do wonders in increasing your bookings and Airbnb business income. Consider offering discounts based on the length of the stay or the date. You could also have special offers for last-minute or early bookers. Promote the discounted prices in your description and listing price. To ensure more visibility, share your discounts and promos on all social media channels. As you look for new guests, take time to persuade past guests to return. Send a short email mentioning that you are offering a special deal for their next stay. You could also ask them to recommend you to their friends and relatives. If a guest enjoyed their stay at your rental, they he/she not hesitate to tell everyone about the experience. Related: 4 Tips to Improve Your Airbnb Marketing Strategy Conclusion Making money with Airbnb as a host requires some visionary thinking and creativity. Applying the tips mentioned above will help you stand out from the competition and boost your Airbnb profit margin. Don’t be afraid to experiment and try out some new strategies for increasing your average Airbnb income. Above all, use Mashvisor’s tools to evaluate Airbnb properties in the US housing market even before buy them, to ensure that you are purchasing top-performing short-term rentals. To learn more about how we will help you make faster and smarter real estate investment decisions, click here. Start Your Investment Property Search! START FREE TRIAL Investment Property AnalysisInvestor ToolsMarketingRental Income 0 FacebookTwitterGoogle +PinterestLinkedin Charles Mburugu Charles Mburugu is a HubSpot-certified content writer/marketer for B2B, B2C and SaaS companies. He loves writing on topics that help real estate investors and agents make better choices. Previous Post How to Prepare for Tax Season 2021 as a Real Estate Investor Next Post What’s the Best Real Estate Investing Podcast in 2021? Related Posts Airbnb Rental Arbitrage: The Complete Guide Is Airbnb a Good Short Term Investment? Invest in Airbnb – It’s 100% Worth the Investment Is Professional Airbnb Property Management Worth the Cost? Airbnb Marco Island Florida: Should You Invest in 2022? Why Buying a Beach House to Rent Out Is Smart What Are Corporate Rentals and Should You Invest in Them? Airbnb Galveston Texas: Should You Invest in 2022? Why Do Some Airbnb Properties Succeed While Others Fail? How Much Money Can You Make from Airbnb Investing in 2020? Joshua Tree Airbnb: Should You Invest in 2022? A Guide to Making Money in Real Estate with the Right Airbnb Pricing Strategy Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.