Buying Property for Airbnb 

Posted on October 7, 2021. Filed under: First Time Buyer help | Tags: , , , |

A great advantage to owning real estate is having the luxury to rent out your property. Whether it is a short term or long term rental, investment properties can provide you with consistent monthly income. You don’t have to be in real estate to take advantage of investment properties, you just need to own one or two properties. 

Key Features to Look for When Searching for an Airbnb Investment Property

  1. Location, Location! Look for an area that is walking distance to tourist attractions (restaurants, bars, shopping, the beach, etc). You will attract more potential renters by highlighting that the property is close to the attractions they might be visiting. If it is not within a walkable distance, is there easy access to safe transportation? Airport, Uber, train stations? Also ensure location is in a safe community where short-term rentals are allowed and welcomed. 
  1. Look for properties with three to four bedrooms. This will attract a few different types of renters: big families, couples traveling together, two families traveling together, friend groups, etc. It is in your advantage to attract various renters who might be traveling for different reasons. Some people travel for vacation, some travel out of necessity, having a multi-functional property will attract more people. 
  2. Find a property with a unique perk or add one in! Whether it is a mini bar, a pool, hot tub, yard games, anything to help your property stand out will help attract renters. Having activities included with the property will give renters a reason to want to spend time there. This will also increase your odds of bringing those renters back to your property next time! If they have fun AT your property, that makes your property the unique aspect of their trip, rather than just the location. 
  3. Once you have found a property with a few key features and would like to consider investing in the property, determine the profit potential. Airbnb.com has a tool available to estimate any property’s potential earnings. This can give you a good idea of how much you may be able to charge for the property and other fees to consider. 
  4. Expenses – General Upkeep as the Owner. When determining profit potential, it is also important to consider what the property will cost you in maintenance. As we have highlighted before, being a homeowner comes with many expenses! Here are a few expenses we suggest considering before purchasing: 
  • What are the host fees? 
  • What are the taxes/insurance and mortgage costs related to the property? This varies by state. 
  • How involved will you be as the host? Determine the expense of hiring someone, if not you, to assist in the upkeep and maintenance of the house. 
  • Will you need to fix up the property? Paint? Replacing fixtures? 
  • Depending on where the property is located, what type of lawn care is required? Snow removal? Moving the grass? Are there HOAs? 

According to Priceonomics, Airbnb hosts are earning an average of $924 a month. Click here to learn more about becoming a host and how much money you could earn. 

If you have any questions about investment in properties for short term or long term rentals, please reach out to our team!

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    Orange County, CA Real Estate for hip first-time buyers and investors. Plus, fun things to know and do in OC.

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