The Rise of the AirBnB Investor
By: Devin Valdez
A new fad is among us. More and more real estate investors inquiring about looking to buy a property that will that will aid them in running an Airbnb empire.
On their website, Airbnb promotes itself as a “trusted community marketplace for people to list, discover, and book unique accommodations around the world — online or from a mobile phone or tablet. Whether an apartment for a night, a castle for a week, or a villa for a month, Airbnb connects people to unique travel experiences, at any price point, in more than 65,000 cities and 191 countries. And with world-class customer service and a growing community of users, Airbnb is the easiest way for people to monetize their extra space and showcase it to an audience of millions.”
In its short lifespan of 8 years, Airbnb has made itself a $25 billion company. Their mission to allow people to turn extra space in their home for profit, has made the company popular and in demand. With such a clear idea of what the return on investment will look like, it’s no wonder why investors are looking toward real estate and into properties for this type of renting use.
But before you hop on this cash-king train, there are a few things to keep in mind when buying a property for Airbnb purposes. See below.
- Location, Location, Location: Just like when you purchase a primary home for yourself, location is key! Airbnb doesn’t have as high a demand in the suburbs as it does in cities like Los Angeles, San Francisco or New York. When looking at properties to buy, think from a tourist perspective and what their wants and needs may be.
- Be prepared from Obstacles: The buying and renovating process may actually be the easiest part. The process of getting your Airbnb running isn’t as simple as it may sound. Be prepared to know legalities such as local rules and regulations to have your property be a rental. If you’re buying a condo or apartment, make sure you know the HOA’s regulations on renting out your property. You should also learn about insurance and tax fees, etc.
- Time is Money: If you’re thinking that buying the home is all you need to do and the rest will work itself out- YOU’RE WRONG. There will be lots of time from you, from attending to your tenants’ needs, managing reservations, making sure your properties’ amenities are prepared and ready for your guests’ arrival- and the list goes on and on! Be prepared to not only invest money but time, as well!
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