Airbnb is an online platform for individuals interested in renting out their homes. This platform connects them with tourists and travellers who are searching for accommodation in the homeowners’ area.
Well, Airbnb real estate investing is undoubtedly a great way for investors to earn money from their investment property. Basically, it’s a strategy in which a real estate investor purchases a rental property, listing either the individual rooms on Airbnb or the entire house. Usually, a real estate investor does not live in the Airbnb investment property.
Since the platform was launched more than a decade ago, it has attained tremendous growth. If you’re interested in becoming an Airbnb host, you may be wondering whether it’ll be a profitable real estate investment. Well, generally, Airbnb real estate investment is perceived as one of the best real estate investments to make now, thanks to the plethora of opportunities it presents for investors.
However, the Airbnb rental strategy does not come without its pitfalls. How successful you’ll be in this business will depend on a number of factors. Before taking the dive, consider the benefits and drawbacks of Airbnb. This blog will help you get a better idea of whether Airbnb real estate investing will be a good fit for you. Here’s a list of the benefits that Airbnb offers:
You don’t need to pay expensive sign-up fees to list your rental property on Airbnb. What you need to do is create your profile with good paragraphs and a decent written description. This allows prospective guests to understand what you’re offering.
High Potential Returns
If your Airbnb property is located in a favorite tourist destination, is furnished well, properly listed, and offers top-notch customer service, you can net a high return on investment by attracting a steady stream of guests. It can even bring in more revenue than it would if you were the landlord of a long term rental.
You Can Set Your Own Price
As a host, Airbnb real estate investing gives you the flexibility to decide how to charge guests: monthly, weekly, or even per night. As an Airbnb real estate host or investor, you can also increase the rental price since it is fixed just for the term of the leases. Just make sure you add the change in your listing.
There are several risks associated with Airbnb hosting. However, in certain countries, the Airbnb Host Guarantee program protects hosts for up to $1,000 if a guest damages the rental property. Keep in mind that this doesn’t replace renters or homeowners insurance.
Besides the money, Airbnb real estate investing often brings about cultural exchanges. This is because many travelers from across the planet and from every walk of life now use the platform. If learning about new cultures is something that fascinates you, you can get a fair dose of it from the various travelers.
Owning an Airbnb investment also offers flexibility. For example, if your property isn’t available on a certain date, you can choose to block off that particular date. This way, it won’t allow guests to book for the dates your property won’t be available. If you plan on being out of town or need to do a major repair, you can block this date off. However, no such option is granted to a typical landlord.
Control the Upkeep of Your Rental Property
After a landlord signs a lease with long-term tenants, it practically belongs to the tenants even though it’s the landlord that has to maintain the property. Usually, the landlord loses a fair bit of control over their property; sometimes, this leads to substantial damages to the home, repairing of which may be costly. However, with short-term rentals, you get to check the property regularly. You’ll be doing maintenance and cleaning it more often.
The Bottom Line Airbnb real estate investing can be quite lucrative. So, is investing in Airbnb an option you should be taking seriously? Well, that depends on you and your particular situation. Before deciding on becoming an Airbnb host, it’s a good idea to go through all the benefits we’ve discussed above. If you choose to invest in Airbnb properties, you can turn to the Republic Investment Group to find and analyze a profitable Airbnb investment property in the US.