Owning an Airbnb changes the dynamic of the real estate market. As renting out on Airbnb is becoming more and more popular, it is not a surprise to see an investor shift and become an Airbnb investor. Follow us on the way to riches as we present to you why owning an Airbnb rental property is your money making move.
What is Airbnb?
Airbnb is a short term rental app that allows property owners and real estate investors like yourself to lease all, or part, of a space to guests. Guests can be charged by nightly, weekly, or monthly rates. This platform allows real estate property owners to list their investment properties for short term rent.
These short term rentals are ideal money makers, as you are likely to make double or triple the amount you would traditionally renting out a property. Renting out a house on Airbnb is definitely a strategy to look into.
Related: How Does Airbnb Work? Learn Here
It is time to talk about making money in real estate. The goal you want to achieve as an Airbnb investor is to earn an Airbnb rental income. When owning an Airbnb, you need to watch out for a couple of things. Airbnb cap rate, Airbnb cash on cash return, and Airbnb occupancy rate are all important factors to consider, as they are your make it or break it metrics.
Lucky for you, that is just what Mashvisor is here to do. It is our mission to provide you with all of those analytics and more (including the golden Airbnb rental income number).
To get the gist of how Airbnb gets the cash flow going, we’ve created a list of ways you make money by owning an Airbnb:
Airbnb rental rates have good karma. We say this because the rental rate is producing amazing returns that get good deals on real estate.
Owning an Airbnb Means Owning a Cash Flowing Property
We are sure you understand the struggle of finding positive cash flow in neighborhoods. Although Mashvisor helps you avoid investing in a poorly-performing real estate property, sometimes they are inevitable.
Owning an Airbnb allows you to surpass the obstacle of securing long-term tenants or figuring out what the real rental rates might be. Instead, owning an Airbnb ensures cash flow that you will be more than satisfied with.
Easy to Manage and Market
The saving of money is just the making of money in disguise. With such a huge platform to advertise your Airbnb investment property, you can say goodbye to expensive, intensive marketing. Tenant screening and evictions are also abolished as Airbnb concentrates on short-term renting. Leasing a property has never been so easy. Don’t forget, the more money saved, the more money you get to keep in your pocket.
Better Resale Property
When using the Airbnb strategy, real estate investors that focus on flipping houses can end up with a much more attractive product to resell. That means premium profit margins, that means faster reasales, that means we are right about how profitable owning an Airbnb is.
It’s clear to investors like you how much of a financial benefit owning an Airbnb property is. There is no reason why you should be left behind, no matter your property type. You can do it.
Simple Steps to Becoming an Airbnb Host
Becoming an Airbnb host is pretty straightforward. Once you have the Airbnb investment property set up and ready to accept tenants, the rest is history. Here are the simple steps to follow to become an Airbnb host:
Create your listing on the Airbnb platform. Come up with an attention-grabbing title, as all you’re looking for here is a click from the search results. Make sure you write a detailed yet accurate description that will answer any questions guests might have. Include any house rules or property regulations to make limits very clear to tenants. Step up your photo game since a picture is worth a thousand words. Properties can sound amazing, but if the picture isn’t selling, neither will your Airbnb rental. Put some personality into your listing!
Welcome your guests. Hospitality really is a key factor in the Airbnb investment property game, so make it a priority. The feedback you receive from your temporary tenants will show up in your reviews. These will make or break you. Make them feel welcome and at home, as that is what most Airbnb customers are looking for.
Get paid! The Airbnb rental income you will be receiving will have you celebrating. You should celebrate because your hard work and smart strategy got you to that point. You earned it. Plus you can thank Mashvisor for our analytics (and that Airbnb profit calculator) when you make that first million in your real estate career. In advance, you’re welcome.
How You Can Reach the Money Making Point
It is no secret that renting out on Airbnb will need some extra elbow grease. Here are a couple of tips we’re going to share with you that will bring you one step closer to making money in real estate:
- Maximize your profits by raising your average booking rate or occupancy rate (although raising both would be perfect)
- Focus on a target guest demographic
- Do competitive research
- Create more capacity and charge extra person fees
Work On Owning an Airbnb Investment Property
The sharing of homes has been commonplace for as long as there have been extra rooms and comfortable couches. Airbnb has taken that concept to the next level and has opened the door to real estate investors. This is the next level of real estate investment in this sharing economy. Airbnb is the perfect example of how this economy is transforming the property market.
Real estate investors have been pulled into the Airbnb riptide and there is no swimming back to shore now. With the right amount of due diligence and Mashvisor analysis, Airbnb can be one of the most profitable real estate investments you can commit to.