There are plenty of benefits to purchasing an Airbnb property. Not only does it give you more potential rewards as short-term rentals drive more income, but it gives you other benefits too. These benefits include fewer maintenance calls, tax benefits, and even having the opportunity to lend your property to friends or family. With Airbnb quickly becoming mainstream and known in the travel community, the expected profits can be tremendous.
However, before making any investment decision, you need to think about whether or not it’s a good one for you. Here are some of the different tips you should use to buy one.
Truthfully, there are several different factors that you need to consider when you’re making your decision. To have success, you’ll need to ensure you put all of the pieces together. Several factors can make or break your success starting with the property you buy.
1. Buying For Airbnb
When you are looking to purchase a property for Airbnb, it’s important to understand every location is different. Because of this, you’ll need to identify the key intricacies of your area. Look at different rentals in the area, look at Booking.com, and more. You want to do comprehensive research on the different properties and see what they are priced at. This can give you a good amount of information you need to make an informed decision. You’ll be able to see the demand, the supply, and the price. Keep in mind, that you want to consider whether or not there are seasonal fluctuations. These can change how profitable your Airbnb is and what kind of vacancies you’ll have to deal with throughout the year. Once you have decided on your location sign up with an online estate agent to find the suitable properties in the area you wish to make an investment.
The location of the property is important. Likewise, you need to be very clear to your Airbnb guests about the location. For instance, if you are located near the beach, advertise it as such. You can even put you are by the sea without a sea view. You may be better off opting for a parking space over a sea view. That way, you can potentially charge extra for it.
Likewise, you don’t have to necessarily have something central to everything. While it could be an advantage for some prospective guests, it’s not going to be for everyone. Some people want to get away from the noise. They are going on vacation to get away from the excessive noise found in the center of the city. Along with the location, you want to think about how practical the property is. You want to think about the potential for noise, neighbors, and even maintenance requirements. By opting for a property away from the city, you can get a much larger property that may be much more desirable for more guests. Along with this, you may get other amenities like a parking space, a garden, or even a terrace that makes your property more marketable.
3. What To Buy?
If you are looking to purchase a flat, you’ll want to check the various terms of the lease you are signing. A lot of the leases are older in language. Thus, interpreting them can be a struggle. If you are struggling with it, you may want to hire a lawyer. Seeking legal advice can be a good move. The leases can be updated with added terms at a manageable cost. Likewise, you want to factor in your potential mortgage and insurance when considering which property to buy. Each is a growing market with brand new providers consistently looking for clients.
Purchasing a home will immediately relieve you of having to worry about lease complications. Also, you are much more likely to get an outside space which is going to be better for a lot of prospective Airbnb clients.
If you are planning on purchasing in London, you’ll want to factor in the 90-day rule. Also, you want to figure out how to get other neighbors on your side.
You want to factor in the space too. For instance, having an apartment on the ground floor will effectively reduce the traffic flow of guests through the various communal areas on the other floors. A basement flat is expected to have its entrance. A single bedroom flat is going to be a good option for couples, but it will also be good for the professional crowd looking for a place to stay. Professional guests typically have longer average stays and they come back more often. You want to cater to these professionals with all of the amenities they may want and need. Keep in mind, that a two-bedroom apartment that sleeps up to six can be a good option for getting families to book with you. Larger places that accommodate more people are going to be able to charge a premium throughout the entirety of the year. They can also be ideal for contractors who travel frequently and who stay for longer durations.