Owning an Airbnb investment property out of state or in a different city is out of the question for most real estate investors. But why? Is owning an Airbnb investment somewhere outside of your local real estate market a bad choice for real estate investment?
If a real estate investor is ill-equipped and ill-prepared for owning a rental property out of state, probably. All this means is that with the right real estate investment tools and knowledge of owning an Airbnb and out of state real estate investing, a real estate investor can definitely succeed!
Owning an Airbnb Investment Out of State: Not a Good Idea…A Great Idea!
You may already have some idea that out of state real estate investing has its advantages. It’s no different with owning an Airbnb investment out of state. In fact, there may be even a few more advantages to out of state real estate investing with short term rentals. Let’s take a look.
Better Real Estate Market?
The real estate market is one of the determining factors of success or failure in Airbnb real estate investing. Why limit yourself to your local real estate market when there’s a good chance a better real estate market exists? Whether this ideal real estate market has a better economy with greater tourism or allows for a better return on investment with short term rentals, it exists! And if it is not your real estate market, then you’re missing out on making the most from owning an Airbnb investment property.
Choose from any of the cities listed as promising for short term rentals and enjoy high Airbnb rental income and Airbnb occupancy rate for the best return on investment!
Better Airbnb Investment Property?
Not every investment property is great for the Airbnb rental strategy. This could come back to the exact neighborhood in the real estate market the investment property is located in. An Airbnb investment property needs to be located somewhere where tenants can get to the tourist attractions they came for.
Besides the location factor, an Airbnb investment property will have qualities that allow for a certain return on investment (size, number of rooms, condition and age, price, etc.). For example, if the price of an investment property is way too high, the mortgage payments will cut into your Airbnb rental income every month.
Other real estate markets might have more affordable investment properties, in better-suited neighborhoods for the Airbnb rental strategy. Why make less money owning an Airbnb investment property when you don’t have to?
To start looking for and analyzing the best investment properties for the Airbnb rental strategy in your city and neighborhood of choice, click here.
Better Airbnb Regulations?
It’s possible that owning an Airbnb investment property in your local real estate market is illegal! As a real estate investor, you have to stay on top of all kinds of Airbnb regulations and restrictions, from zoning laws to landlord-tenant laws. If owning an Airbnb is illegal in your local real estate market, you need to know to avoid hefty fines.
While owning an Airbnb may not be illegal, it could still be heavily regulated in your location. This could mean limiting the Airbnb occupancy rate to a short time period within a year. Or it could amount to tons of fees and taxes that leave barely any Airbnb rental income as profit for a real estate investor.
Maybe short term rentals don’t make for the best real estate investment in your local real estate market, but they are bound to somewhere else. Check Airbnb regulations by city and you can find one that allows for the best Airbnb occupancy rate and the highest Airbnb rental income due to its Airbnb friendliness.
All of the benefits of owning an Airbnb investment property out of state spell out one thing: a better return on investment. But how can you be sure you get a better return on investment when buying a rental property out of state?
How to Find Airbnb Investment Property for Out of State Real Estate Investing
To answer that question, you have to know how to find Airbnb investment property for successful out of state real estate investing. Out of state real estate investing with Airbnb has many benefits, sure.
But it can still be risky if you don’t find the best real estate investment. We want you to get the best return on investment with your short term rentals. That’s why we suggest using an Airbnb profit calculator for finding Airbnb investment property.
An Airbnb profit calculator will show you the kind of Airbnb rental income and Airbnb occupancy rate you can get in a specific real estate market. Not only that, but a real estate investor can also see the kind of return on investment possible in that real estate market by looking at the cash on cash return and cap rate for Airbnb real estate investing.
To learn more about our Airbnb profit calculator, click here.
Once you find a real estate market that is best for owning an Airbnb investment, you need to find a rental property. This would require the future Airbnb real estate investor to compare hundreds of investment properties and their return on investment metrics to land on one.
That’s why it’s most efficient to use Mashvisor’s Airbnb profit calculator. Not only will this real estate investment tool show you the best investment properties to buy for the Airbnb rental strategy, but it will also show you the top performing ones if you use the Property Finder tool.
With these two real estate investment tools, you cut down the risk of out of state real estate investing as you quickly and easily find the best real estate investment for the Airbnb rental strategy.
To start your 7-day free trial with Mashvisor and subscribe to our services with a 15% discount after, click here.
Don’t forget to visit the location and take a look at the rental property. Hire a professional home inspector as well before purchasing. Do out of state real estate investing the smart way!
Maybe you’re not so worried about finding an Airbnb investment property for out of state real estate investing. Is it owning an Airbnb and dealing with Airbnb property management that’s giving you cold feet? Well, here are a few ways on how to manage an Airbnb rental property from out of state.
How to Manage an Airbnb Rental Property from Out of State
Here are a few things to consider when managing an Airbnb rental property from out of state
Professional Airbnb Property Management
You probably expected to see professional Airbnb property management here. And maybe you refuse to go with out of state real estate investing because you’d rather be hands-on with owning an Airbnb investment. If that’s the case, then stick with your local real estate market and use an Airbnb profit calculator to ensure you find the best real estate investment there.
Did you know, however, some of the most successful Airbnb real estate investors opt for professional Airbnb property management? This is true whether we are talking about out of state real estate investing or not. At the end of the day, reliable and successful professional Airbnb property management will increase Airbnb occupancy rate, Airbnb rental income and end up being worth the cost.
Think of it this way. If you choose a great real estate market with the highest potential for success with Airbnb real estate investing, you will be able to afford professional Airbnb property management. Stick to your local real estate market, and not only is it possible you’ll make less in a return on investment, but you may never have the option of affording professional help!
Optimizing and Automating Airbnb Property Management
Before we say another word on this way of managing and owning an Airbnb investment property, know it will require some traveling back and forth to the rental property. Unless you go for professional Airbnb property management, this is unavoidable. Keep in mind, that while it requires effort, the costs of traveling to short term rentals for out of state real estate investing should be tax deductible.
In between visits to the Airbnb investment property, things like smart locks, booking software, manuals in place for tenants, hiring a cleaning crew and handyman, etc. can all help to automate and optimize Airbnb property management and even increase Airbnb occupancy rate.
Look into Airbnb management software, like Smartbnb, to help take care of some of the daily tasks of owning an Airbnb while you are not around. Your Airbnb guests may appreciate the efficiency as much as you do!
Is owning an Airbnb out of state a good idea? It’s a great idea. With all of the benefits and possibilities of successful real estate investing, why avoid it? If you’re worried about finding a great investment property for the Airbnb rental strategy, use an Airbnb profit calculator. For management, consider the professionals or use all the helpful software and technology available to you. You have no excuses left!
It’s possible your real estate market is a great one for Airbnb real estate investing! If you’ve come to this decision, then you need to read: How Can I Find Real Estate Property for Sale Near Me?
To learn more about how we will help you make faster and smarter real estate investment decisions, click here.