Now that you’re convinced that listing a property for Airbnb is a good investment, the next biggest challenge would be to find a good place to list on the real estate site. If you’re someone who has a spare room or a part of the house that you can list, then that’s all good but not everyone is that lucky.
So if you want some tips on how to find the best properties to invest in for Airbnb, then you’ve come to the right place.
1. Don’t go in blind.
Kendra Barnes, an ex-federal employee who is now an expert house hacker, admitted that when they were starting their real estate business, they kind of just dove right in. Barnes said that it did pay off, but that was just a stroke of luck. So for newbie real estate investors, especially those who want to use the Airbnb platform, do not make the same mistake of just going for your gut when checking out a property.
Airbnb has rules and regulations that you could look into. They have a site which can give you a pretty good picture of how the business is supposed to run. Just don’t slack off on this part or you risk losing this straightforward game.
2. Determine what kind of clients you want.
Airbnb rentals can cater to practically anyone on the map. But expert hosts are able to zone in on what kind of guests they want to attract in their homes. For example, the idea of renting your apartment to an entire family for a summer getaway may appeal to you. Or you want the lone backpacker to rent one of the rooms in your place. To each his own really. Knowing what kind of client you want to accept will affect the location, property type, and even interior design of your rental place.
Now if you want to set up an Airbnb during this pandemic, it’s best to know that travelers during this time are pretty concerned about their health and safety. So most of them want short but awesome trips they can fondly remember when they eventually get home.
3. Research about top locations.
After knowing what kind of clients you want, it’s time to pick a location for your rental home. Airbnb has listed their top destinations throughout the world so you can actually start from there. Just keep in mind that these destinations can be pretty pricey. That’s why some people actually use that list to know what to avoid when looking for a place because they want to appeal to adventurers. It’s really up to you.
4. Decide on what kind of property you want.
Airbnb hosts could list single rooms, condo units, entire apartments, and even up to an entire home. This should coincide with the place and target market you want to offer to. You can’t be listing a single room for a group of friends and at the same time, a lone backpacker will not be able to afford a super luxe and spacious apartment even if it’s close by the mountains or the beach.
5. Conduct a thorough analysis on the property you’re eyeing.
At this point, you’ve probably listed down your Airbnb location, property type, and target demographic. Now is the time to crunch the numbers. You need a reliable Airbnb calculator by location to check just how much is the cost and projected income of the rental home at any given point in time. With this great tool, you’ll be able to assess whether or not these variables are even profitable especially in the long run.
6. Set up a budget.
Of course, knowing your budget is a very important consideration for any business for that matter. This can happen at the very beginning of your planning but it can also come after you’ve done the relevant research. This is basically asking yourself, just how much are you willing to spend to put up an Airbnb listing in a specific area? Please remember that profits will only come after a significant amount of time, so do not give out money you can’t afford to lose.
7. Consult a real estate agent.
If you have no idea what you’re doing and you’re a busy person, my final suggestion would be talk to a professional. Real estate agents can be your middlemen in choosing the best properties even for Airbnb. However, this will of course come at a cost.
There you have it. That’s actually everything you need to know to find the best properties to buy for your Airbnb business. Be wise and follow these tips and I’m certain you can never go wrong.