You have probably heard of the immensely popular service and app called Airbnb. There’s even a chance you have stayed at an Airbnb property while on vacation or rented out your own home on the site. Airbnb is a great way to make extra money and many investors have purchased homes with the intention of creating an income producing property. There are several things to consider before you take the plunge into Airbnb investment properties.
Have You Picked the Right Location for Airbnb? : The first rule of real estate is- Location! Location! Location! It is no different in this case. In order for a short-term rental property to be successful, the demand for lodging must exist. It wouldn’t make too much sense to have an Airbnb property in a place that has little in the way of tourism. It is important to fully understand the needs of potential guests. Put yourself in the shoes of someone looking for a place to stay while visiting loved ones or while on vacation. You would probably want to be close to attractions or transportation and some appealing features like a nice view would certainly help. Also, give thought to seasonal demands. Will your place be more popular during certain times of the year?
How Much Time and Energy Will You be Able to Invest? : Once you’ve purchased your property, you might think the Airbnb property will essentially run itself. This is a misconception. Hotels don’t run themselves and this is no different. Running an Airbnb requires attention and guests will likely expect things like clean towels, a freshly cleaned space, tourist information, and ease of communication. Hosting can be difficult and you can almost consider it an additional job. With careful planning, a few gadgets and some friendly neighbors this can become an easier task. There are also services, like Pillow or Guesty, which you can employ to remove some of this burden (IT WILL COST YOU THOUGH!)
Are You Hosting Your Airbnb ‘By the Books’? : Areas like New York City and San Diego are cracking down on Airbnb properties because these new short-term rentals are greatly affecting the hospitality industry. Laws and local regulations are constantly changing so you need to make sure you are following all the current rules and paying the applicable sales and occupancy taxes to avoid legal action.
Renting out your house or apartment on Airbnb doesn’t have to be a full time job if you don’t want it to be but it does require a bit of effort and plenty of patience. Make sure you consider these things and more before you buy a property to use on Airbnb.
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