As a real estate investor who has opted to invest in Airbnb, you might be concerned that you’re not making as much money as you had hoped. When you first started out, you decided how much to charge for Airbnb, possibly without knowing the kind of profit you could be making with your rental property. Now that you realize you can make more, it’s time to discover how to increase rental income.
There are plenty of ways you can use to increase your Airbnb rental income. When you invest time and resources into your Airbnb rental property, you will most certainly achieve a greater positive cash flow. In fact, once you’re successfully immersed in the Airbnb market, you’ll find yourself wanting to buy even more income properties!
Read to learn about the things that you could do to increase your Airbnb rental income today.
Before we get started, be wary of regulations!
If you are new to the Airbnb rental market, you should be wary of regulations governing Airbnb in your city/state. Airbnb regulations have become stringent in many places across the United States in recent years.
In some locations, renting out on Airbnb is completely prohibited and if you’re not aware, you could be setting yourself up for more fines than what you expect to gain in profit. To avoid such pitfalls, contact your local city council and inquire about the most recent Airbnb regulations and state laws.
Tip #1: Make Property Improvements
One way that can be beneficial to your Airbnb ROI is continuously upgrading your Airbnb rental property. Tourists and renters will be more likely to book an Airbnb property if the property is well-kept. Even the smallest and simplest touch-ups will add more value to your property.
When you make home improvements, your Airbnb rental income will increase. The better and more upgraded the property, the higher you can charge.
Investment property improvements could include the installation of air conditioning units, planting and mowing the lawn, or even going as far as updating the plumbing system.
Home improvements may not be tangible to tenants. However, when renters face no difficulties while staying in your property, they will leave the rental property satisfied. They will most likely write good Airbnb reviews too, thus, setting value for your Airbnb rental property allowing you to attract more tenants.
Tip #2: Hire a Professional Management Company
Offering excellent service is another contributor to earning a higher Airbnb rental income. One way you could achieve this is by hiring a professional management company to manage your property for you. This is particularly beneficial to real estate investors that have more than one income property to manage and/or have another full-time job.
Related: The Top 6 Strategies to Boost Your Rental Income as a Real Estate Investor
Professional management companies have the capability and resources to handle various aspects of your Airbnb rental property, thus raising the quality of your Airbnb listing and improving renters’ experience.
For instance, a professional management company can check guests in and out, provide cleaning services, and handle the property listing on Airbnb.com. Some Airbnb investors, moreover, resort to management companies to help them with taxation, legal requirements, and documentation.
It is true that you will have to pay more to get a professional manager involved. However, a professional management company will help you maximize your Airbnb rental income.
Tip #3: Use an Airbnb Profit Calculator
Utilizing an Airbnb profit calculator can and will certainly help you increase your Airbnb rental income. You may be wondering what an Airbnb profit calculator is. Well, an Airbnb profit calculator is similar to an investment property calculator or rental property calculator.
The calculator allows investors to measure the return on their investment properties. It will calculate the cash flow, capitalization rate (cap rate), rental income, and Airbnb occupancy rate.
As you use the Airbnb profit calculator and learn of the Airbnb occupancy rate you can expect within an area, you will have a better idea of when to charge higher or lower. The calculator will also provide real estate comps so you can set a competitive price. Therefore, you can strategically increase your profit margin and earn a higher Airbnb rental income.
You can start using an Airbnb profit calculator through Mashvisor. Mashvisor’s Airbnb profit calculator will calculate the aforementioned metrics for you as well as provide you with insights on what your Airbnb rental income should actually be for your location.
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Tip #4: Make Your Rental Property Pet-Friendly
Often times, guests refrain from booking an Airbnb property because of the restrictions placed on having pets. Guests then resort to properties that are more pet-friendly, even if they cost more for a night’s stay. Making your rental property pet-friendly and allowing all kinds of pets will add value to your Airbnb rental property and will allow you to increase rent.
Assess Airbnb properties within your area and determine if any vacation rental properties allow pets. If the number is not high, you could then increase the nightly rate.
Related: How to Get the Maximum Airbnb Rental Income
If you own a rental property in a building or condo complex, make sure to assess your building’s pet policy. Often times, owners of buildings and condo complexes prohibit pets or place certain restrictions that you need to abide by. It’s also a good idea to adjust the tenancy agreement to have your own rules for pets as well to protect your Airbnb rental.
Tip #5: Accommodate More People in Your Rental Property
Another way to increase your Airbnb rental income is by hosting more guests in your rental property. When the Airbnb season is high, consider renting rooms instead of the entire apartment and fitting additional guests if the house has the capacity to hold a higher number of tenants.
Do not compromise quality, however! You want to earn a higher Airbnb rental income but also offer the best experience for your tenants.
Tip #6: Invest in a High-Quality Profile
When you are listing on Airbnb, make sure that your profile is interactive, elaborative, and precise. Add as many details about the Airbnb rental property as possible. Personality is also key to attracting more tenants. Let your personality shine through! Invest in professional photography and make sure that your renters write good reviews about you.
When you show renters or potential renters the effort that you have invested in portraying a good Airbnb listing, they will feel more comfortable to book a property that could be a bit more expensive than other neighboring rental properties.
Related: The Best Ways to Increase Airbnb Rental Income
Summing Up
Whether you’re new to Airbnb or an immersed Airbnb host, the aforementioned tips will help you increase your Airbnb rental income. Be diligent and invest your time in making your Airbnb rental property the place to rent today.
If you don’t have enough time to dedicate to your rental property, then resort to a professional management company. You will incur more costs for your rental property but the profit will certainly outweigh the cost of hiring professional help. And do not forget to make use of Mashvisor’s Airbnb profit calculator.
To learn more about the Airbnb profit calculator and our other services, visit Mashvisor!