Rent Your Property for a Lot More Per Night
It’s true that Airbnb has had a negative impact on local housing costs. That’s because property owners are using Airbnb to rent out entire homes (rather than just an airbed) for short lengths of time at per-night prices that are far higher than what a house would rent for on a monthly basis.
For example, say that someone rents out an entire house for $200 per night. On a monthly basis, that would equal around $6,000. However, on the long-term housing market, the same house might fetch only around $2,500 per month. Most people would eagerly take $6,000 over $2,500.
Why Is Airbnb a Good Investment?
The Short Term Rental Market is Growing
Keeping up with market trends is the key to success when it comes to real estate investing. Recent studies show that the short term rental market, which includes Airbnb properties among others, is expected to grow 7.9% annually. Airbnb rental properties are becoming more and more appealing to vacationers and travelers, as they offer several advantages when compared to traditional hotel rentals.
Therefore, to answer the question “Is Airbnb a good investment?”- the answer is a solid yes. As Airbnb grows in popularity and attracts more and more guests, buying a vacation rental property seems like a reasonable investment in cities where Airbnb is not heavily regulated.
As an Airbnb investor, you should aim to find an investment property in a prime location that guarantees a high occupancy rate throughout the year.
REAL ESTATE AGENCY
American Real Estate & Mortgage LLC
Sky is the Limit
Many real estate investors (especially beginners) looking to buy an investment property to rent out on Airbnb often think that buying a property close to home is the most sensible decision. You know the housing market, it’s easy to get to for cleaning and maintenance, and you might even know people who are renting out their place on Airbnb and are making extra cash.
However, investing in an Airbnb rental property far from where you live will give you a significantly higher Airbnb return on investment. Real estate investors will have the whole country to pick from, allowing them to find the best markets for the best returns on short-term rental properties. AirDNA believes out-of-state investing is great for Airbnb rentals too! According to AirDNA, owning an Airbnb investment out of state “forces you to make your investment a passive one.”
Why limit yourself to your local market when a better real estate market exists? Contact us Today and start your AirBNB investing today!