While investing in rental properties might be the perfect choice for you, why not investing in Airbnb rentals?
Short-term rentals, especially Airbnb rentals, are so popular nowadays. Since Airbnb started, it has been the best rental strategy for those starting new in the real estate business. There has been a huge turnout from travelers to Airbnb rentals since then, due to the affordable prices and the unique experiences they were exposed to. Guests get to live in a place of their choice that is close to their interests. Moreover, they get to experience everyday life in many different cultures.
Wondering what Airbnb rentals are and why they are so popular? Here is a glance to this lucrative rental strategy!
Airbnb is a platform that connects people who want to share their space with travelers from all over the world. It connects a host with travelers who are looking for a place to stay at an affordable price range. You, as a host, can either share your own home by renting a room or you could even buy a property and list it on Airbnb for short-term rentals. It allows you to list your rental property for free, and you can share photos and descriptions of your investment property on it. Moreover, Airbnb charges you only 3% of your rental income per booking, which is considered less than other hotel booking services.
However, the question is: What made Airbnb rentals this popular? And why is it one of the best rental strategies for you, especially if you are starting new in the real estate business? Here are the answers for you!
First: Making extra money
Of course, making money is the first and most important reason for sharing a space with travelers. The only thing to consider is the location and the rental space that you have available. In this way you will make sure that you attract a higher number of visitors to your rental services. Sure enough, Airbnb provides hosts with ratings based on their property’s location. It lets them know what to expect in terms of booking. Another factor that might play a major role in making money through Airbnb is the season. You can have even more bookings during the high seasons. This is actually related to the Airbnb occupancy rate. The location, the season, and the rental space itself are all factors that determine your investment property’s occupancy rate.
Second: Taxes and costs
Though you might be subject to rental income taxes, still you will not need to spend much on your rental space. In other words, a short-term rental space does not need much repair or maintenance, especially if you have good tenants who are going to take care of your property! And that is exactly what we are going to talk about in the next point. Another thing you are going to be saving on is property management. With Airbnb rentals, you do not have to hire professional property management services, though you might need to hire cleaning services or other services that you feel necessary. Other than that, you can still choose to do it yourself.
Third: You get to choose your tenants!
This might be a bit strange, but yes. Airbnb provides hosts with a rating system that rates tenants. Every host gets to rate their guests after every visit. So, you can review you guests’ ratings before closing the deal with them. Therefore, you can rest assured that your rental property is taken care of and that your guests are not going to cause you any trouble during their stay.
Fourth: It is a chance to meet new people
Investing in Airbnb rentals is not all about making money! You are going to meet a whole lot of people while making money investing on Airbnb. Your guests might be people on business trips or even backpackers. What they all have in common is that they are looking for a place to stay for a short time and for cheap. This is indeed a great opportunity for you to meet people from all over the world and from different backgrounds and cultures. All you have to do is meet your guests with hospitality and make sure that they have all they need for their stay. This will lead to better ratings for you as a host, therefore, making regular clients to your property. Who knows, you might even make good friends or even build good connections with your guests while investing in Airbnb rentals!
Fifth: A huge platform of renters
Airbnb has proved to have a wide platform of renters all around the world. They have listings in 190 countries worldwide and an enormous number of users. Guests usually get access to the Airbnb application or website by creating an account on it. It gives them access to the data provided by Airbnb. It also enables renters to contact the hosts of the rental properties listed on the website. Sure enough, by investing in Airbnb rentals you save time and effort trying to hunt down potential guests.
Sixth: Airbnb rentals provide good insurance coverage
Yet another great aspect of Airbnb rentals is insurance. Airbnb provides hosts with an insurance coverage up to one million dollars even though you might need to check what exactly it covers. Still, it is a great option to benefit from, especially, in case your rental property gets damaged in any way.
Seventh: You do not have to deal with late payments
This is great news for you. With Airbnb rentals, you do not have to deal with late payments. You get fully paid by the day of your guests’ check-in, if not in advance. So, you actually never have to deal with rental arrears or any such problems.
Bottom line:
Airbnb rentals are perfect for those of you who want to make extra income on their investment properties. It is an easy rental strategy that comes with financial benefits fast. It provides a platform for hosts and guests that makes it easier to connect and share spaces. Moreover, it will leave you and your guests with the best experience making money, friends, and connections!