The growth of Airbnb has made it possible for the average person to turn their house or other property into a successful company. You don’t need to own a property to earn money using Airbnb.
Real estate investors that use the Airbnb investing method buy rental houses and list the whole thing or specific rooms on the website. Investors may or may not occupy the properties themselves. Investing in Airbnb is a great way for investors to make money from their portfolio of properties. Evidently, Airbnb is a booming market that can potentially earn you considerable profits. So, here’s how you can invest in Airbnb.
1. Find the Property
Location, like any real estate investment, matters in Airbnb. If you have any property that you rarely use, you should consider its location before deciding to use it for Airbnb. The location of any property determines its value and the prospective rental you can get from it when you decide to rent it out.
If you do not have any property, you can start out by renting out one. Now, once you get the property, do some upgrades with some products from OPPOLIA, such as cabinets and custom kitchens, then list it with a substantially higher price, like 10% interest from the principal amount. The interest goes to your bank account if you had rented the property on a monthly basis. If you had rented it for a whole year, you could determine the basis on which you would charge it. Per-night charges also work for some people. All you need to ensure is that you get worth for your money.
2. Run the Stats
The figures are the most crucial factor to consider before selecting whether or not to pursue a contract, just like with any investment. Try listing just one of your property investments on Airbnb if you have several to see how it does. What is your price range? Which occupancy rates exist? How much effort do you put into the position? Additionally, you could always use Airbnb to rent out your main property. Go on a trip and find out how challenging it is to use the platform. Just keep in mind how crucial the testing phase is.
3. Operate it Like a Business
No matter how many properties you have listed on Airbnb, you should always manage your Airbnb like a business. How do you interpret that? Airbnbs are, after all, simply hotels, correct? In actuality, they are a hotel’s main rival. By exceeding their clients’ standards, 5-star hotels earn their designation. So take into account the requirements of folks who will be renting your property. You may show your guests you care by leaving an extra hairbrush in the washroom, ground coffee in the coffee maker, freshwater bottles in the refrigerator, and extra clean towels, to name just a few ideas.
4. Think Outside the Box
The homes that are well-adorned and carefully shot are the ones that are leased out most regularly on Airbnb. So get to work and unleash your inner interior designer. While avoiding going overboard eccentric with the decor is vital, becoming a little creative is entirely acceptable and even recommended. Is your rental property in a “beachy” area? With tiki torches and floral arrangements, increase the ambiance. If you live in a city, think about displaying artwork that captures the spirit of the area. Overall, make the rooms creative but different so clients can have a variety to choose from.
5. Outsource Talents When Necessary
Explore your talents when it comes to Airbnb rentals. Outsource that assignment if you’re not the greatest interior decorator. You can outsource the task of fixing a leaky toilet if you’re not the ideal person to do it. The most valuable resource for investment is time. Therefore, when you are willing to cosign, you are actually acting in the long run’s best interests for yourself, your properties, and your finances.
6. Choose Your Ideal Tenant
It will be easier to list your house if you know exactly who you want to rent it to. You must uphold your end of the agreement and offer an opulent treatment if you want to draw in higher-paying visitors. In contrast, if your property’s nightly rate serves as a competitive edge, be prepared to put in the extra labor required by frequent tenant turnover. Whatever your ideal client looks like, make sure to highlight any features of your house that you know the “perfect tenant” would value.
The Bottom Line
Having an Airbnb investment property can be a fantastic method to generate extra cash flow, but before implementing the plan, be sure to weigh the advantages and disadvantages, determine your objectives, and highlight your skills. When you understand what you are getting into with this investment, you will not get frustrated when things do not materialize as you expected.
