With the current state of affairs in the world, many people are looking for ways to protect their money. Investing in real estate is one of the best ways to protect your money in times of crisis.
Real estate investing can take on many different faces. For some, it means buying distressed properties, fixing them up, and flipping them for a significant profit. Others would rather buy up some rental properties and work as a landlord. Then there are the ones who target tourists and buy property to rent out for the short term.
In this article, we will go over what you need to know when it comes to buying a property to use as an Airbnb rental.
Research the area
Everybody understands that location is one of the single most important factors when it comes to real estate purchases. However, different locations have different benefits. When you are looking to buy an Airbnb property the location that makes the most sense is not going to make sense for a property to flip, for instance.
The key to look for whether you are looking at Florida real estate or some other state is an area where there is a big need for short-term rentals. There are many different reasons for people to need a short-term rental. If the area is touristy and sees a lot of visitors that come and want to be close to the sites, then this is the most obvious place to buy.
Another factor is when people come for conventions or work so looking for areas where there are a lot of business travelers also makes sense. They may only need a few nights to go to a conference so your Airbnb could be the perfect answer for them.
Make sure to take a deep look at the area where you are looking at properties. Try to do some research to figure out what the needs are of the people that are in that area. If there is a shortage of rentals for actual tenants then it might not be the best location for an Airbnb.
Decide on property type
Besides the area, you will also need to research what type of property people need for their stay. For instance, a business traveler has different needs than a tourist. The type of accommodation should reflect the needs of the people renting.
You may be faced with the choice of buying an entire house or an apartment. Don’t buy an entire house if people only need a couple of rooms or there are mainly solo travelers in that area.
Have your pricing right
You can definitely get much more per night than when you rent out a property in the traditional sense. That doesn’t mean you can charge whatever you want. The price has to be in line with the average of the area. Check out what people with similar properties are charging and use that as a guide.
It’s possible to ask for more if you have more amenities or offer some upgrades. The trick is to charge as much as you can to maximize the profit, while at the same time not charging more than the place is worth.