Is investing in rental properties a reliable business model?
Can you really turn investing in Airbnb properties into a money making opportunity?
Renting properties through Airbnb has become very popular lately and many are making ‘big bucks’ by renting out their homes to short or long term tourists.
This is different that renting a home long term, though.
Becoming a landlord does indeed come with perks: you have guaranteed tenants who pay rent on a regular basis, you don’t need to constantly attract new guests or be always available to care for their every need.
However, renting property to tourists gives you the chance to earn much more in the long run, if you’re ready to treat it as a business model.
Investing in real estate has always been a great opportunity to earn serious money.
Airbnb was founded less than 10 years ago, but has been rapidly growing ever since!
Becoming an Airbnb host is not that difficult, although there are specific regulations to take into account, depending on the laws in your specific area and type of bookings you want to offer.
Not only that, but there are certain expenses to take into consideration as well.
You’d have to invest in your rental property to make it stand out and attract new tourists.
You’d have to spruce up the place after each tenant. Then there are occupancy tax regulations to consider.
However, compare the downsides to potentially charging $100 a night and you might want to reconsider before giving up on earning money with Airbnb.
Turn investing in AirBnb properties
into a money making opportunity
Location is everything!
Renting out space to travelers can be done 2 ways: you either rent out a spare room (or your whole home when you’re traveling yourself), or you seriously invest in a new property you’re going to use for renting purposes only.
(I’m pretty sure the idea of having strangers come and go as they please might weird you out. But if you can’t afford to buy a new place to rent, having house guests from time to time might be a good start.)
If you do decide to invest in an Airbnb property, make sure you choose an amazing location!
You want to have your new place fully booked in the near future, right?
Make sure you look for properties in areas where tourists are most likely to visit and where there isn’t a big supply of affordable hotels or B&B’s!
Just be careful not to target the wrong area and risk losing money or not making a profit anytime soon.
List your property on the Airbnb website
Aside from finding the perfect location, you should also pay extra attention on how you present your property to potential tenants.
Is the place squeaky clean? Is it spacious and modern enough?
Do you have the kitchen appliances and bathroom supplies needed on a daily basis?
Oh, and can you prove it with pictures and words?
Presentation is everything!
Once you have your property ready to rent, you have to make sure people will want to stay there!
Nothing attracts tourists more than great quality photos and an witty description of your place.
Consider hiring a professional photographer and a professional content writer to help you out.
If you’re ready to treat renting through Airbnb as a business, you need to stand out from the crowd! Especially if you’re a newcomer.
Juggle prices as you see fit
Since tourists are usually short term tenants, you could take advantage of juggling with your prices!
Is your rental property near the beach?
Up your prices during high season and lower them in winter!
Are there any interesting events about to take place nearby?
Take advantage and grab the chance to charge more when possible!
Any opportunity that can potentially attract more tourists is great for you to begin ‘playing’ with your prices.
Maximize your profits by taking advantage of peak seasons or special occasions.
Be careful not to overcharge though, and make sure to keep a close eye on your competition.
Be nice, even to annoying guests
It goes without saying, your reputation as an Airbnb host highly depends on how you treat your tenants!
Sure, you might get a less-than-5-star-rating from time to time. But you need to make sure this doesn’t happen on a regular basis!
If you’re looking to earn some serious money from renting properties through Airbnb, you need to be the perfect host, regardless of how annoying your guests are.
To maximize profits, make sure you treat this as a business, and not as a side income hustle.
You need to be there for your tenants, be polite and friendly, provide them with everything they need to make their stay comfortable.
Don’t underestimate the power of reviews! They can either make or break your reputation as a desirable host!
Did you know guests have the right to sue you if something happens to them while living under your roof?
A host needs to make sure paying guests are safe while on vacation or business trips or whatever their reasons for short term renting are.
Invest in smoke alarms, baby proof the house if your guests bring small children, avoid glass end tables as part of your decoration strategy.
More important than anything though, if you’re about to turn investing in Airbnb into a serious business, get insurance.
The company offers a Host Protection Insurance, but if you can get a good deal on your own, go ahead and protect yourself.
Investing in Airbnb properties is definitely a great way to earn some good money.
It might be difficult to get started, seeing how buying a house or an apartment isn’t your regular everyday purchase, but making the effort to pursue this investing opportunity is well worth it, in the long run.
Have you ever rented a property (or even your own house) through Airbnb?
Did you have a pleasant experience or would you say it’s not worth the hassle?
Latest posts by Adriana (see all)
- Investing in college education: how to save for college - October 20, 2020
- Hidden Expenses Homeowners Often Forget - March 9, 2020
- Expenses that Your Tax Accountant Can or Can’t Help you Deduct - August 22, 2019
- Personal Finance and Mental Health: When to See a Therapist - August 9, 2019
- Strategies to pay off student loan debt faster - August 22, 2018