Buying Property for Airbnb
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
- 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.
- 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.
- 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.
- 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.
- 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!
Read Full Post | Make a Comment ( None so far )Women finding freedom through the sharing economy of AirBnB
Let’s be honest, a lot of females are juggling household schedules, making beds on the daily, and working full time jobs in customer service or hospitality type industries. A lot of these same females are also searching for a way to spend more time with loved ones, and to find a better work-life balance.
This brings the question: How can we live richer, more fuller lives while making a difference in the world? Keep close connections with our families & still sprinkle what we were meant to do into the ethosphere?
For those who have a passion to roam and to create, enter the opportunity of vacation rental management, AirBnB experiences, and niche property rental platforms.
If you have a unique property or space, big or small, this is an opportunity for you. People love to rent not only stick & brick type properties, but also RV’s, boats, cars, treehouses, yurts, water towers, and land.
We now live in a world where you can tow a trailer, link up to solar, put out a cell booster, charge devices, and work / connect from almost anywhere. As the clouds from Covid continue to lift, people are ready to explore this new world. Are you ready to connect with them?
I recently had the opportunity to interview some of these women who have opened their spaces in the home-sharing economy. Each has a unique story to tell, weaved in with their life passions and experiences.
Take for example entrepreneur Heather Carter, running Eureka Springs Coffee House with 2 AirBnB units above. Guests enjoy the main strip of historical Eureka, Arkansas; and also have discount offerings at the coffee shop below. Travelers include vacationers and business professionals alike. In a recent video interview with Heather, she said “We used to live above the coffee house ourselves, but we soon discovered we had a unique opportunity for rentals here”. Indeed she did!
Heather advised she prefers the niche with commercially zoned properties, so she can avoid any roadblocks with residential vacation rental limitations. If you aren’t sure about STR rules in your community or city, be sure to research accordingly to avoid pitfalls.
Another go-getter making the most of her skills is April Snow-Kass, a Realtor in LA specializing in harmonious homes for musicians. April recently branched out to nearby Joshua Tree as a vacation rental host. Now, not only can April sell property in a new area, she can speak to personal experience on the equity gains and the rental income her ‘Retro Ranch‘ in the JT desert is recently experiencing.
Let’s not forget supermom and High School Counselor Carolynn Cribley. Her and financé Matthew Herman in Grandville, Michigan, are putting an extra room in their home, coined ‘The Barnhouse,’ to STR use. They stated in a recent interview that it’s brought such great results, they not only bought another property, but looped parents in on the opportunity. They inspired and guided Matthew’s parents to a short term rental purchase as well. Not only has Carolynn & Matthew created additional monthly cash flow (partly used to build a fun new pool!), they’ve hopped the family on the path to generational wealth.
According to the NAWRB’s website and WHER report:
“…research found women seek homeownership for these primary reasons:
As a “Sanctuary”
https://www.nawrb.com/one-tough-mother-how-single-mothers-are-defining-the-homebuying-process/#more-18821
A sanctuary is defined as a place of refuge, an oasis or a retreat. Women value creating a unique space from which to retreat from the outside world—one in which they control the climate, the decor, the layout. One’s home is a psychology of space…”
Vacation rentals are a method to live this ‘sanctuary’ lifestyle, and create income. Win-win.
Another example is Corporate Executive ‘girlboss’ Vanessa Montanez, who explained to Homeownership Day attendees in January easy steps to enter into investing. Vanessa discovered the benefits of renting her Temecula wine country home on AirBnB recently, and as a lender herself, was kind enough to share strategies with other would-be investors at Homeownership Day.
Admittedly, all of these hosts know STR life is not as ‘passive’ as long term rentals; but it can be more profitable, plus it allows the ability to vacation in your own property, afford *more* units, & / or meet new friends. Yes, you may still be making beds, running multiple schedules, and rocking your 9-5. But it’s a way to squeeze the most out of almost any property.
Best of all, homeownership is open to many, regardless of education level or background. With low interest rate loans and programs like FHA allowing as little as 3.5% down, many females are opting into a property purchase. Additionally, SBA loans for Women Owned Businesses have opened even more doors to run a viable business from home. There are many options to sell creations of any kind from home, be it via online avenues or to guests traveling through your space.
Speaking of online avenues, the fast-track growth of property rental apps makes the marketing side become much easier. You don’t have to do your own Search Engine Optimization anymore – these apps are paying to get the word out on your behalf. Platforms to easily start your sharing economy hosting on are AirBnB, VRBO, Hipcamps, Harvest Hosts, Furnished Finder, Outdoorsy, Turo, and more.
For additional information or a guide into the vacation rental lifestyle, reach out to NAWRB Delegate Spokeswoman Angie Weeks, or watch her video interviews at http://www.YouTube.com/HomebuyingRegistry/
This article was written for Women in the Housing and Real Estate Ecosystem; NAWRB. If you would like an article for your publication simply comment below or reach out to Angie at 949-338-7408.
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Orange County Real Estate Success 