Real estate investing is a very popular way to make money, especially since it's so resilient when a bad economy exists. A great way to invest is to buy cheap properties and rent them out. Instead of looking for tenants and dealing with leases, renting out on Airbnb is a great way to make money.
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| The 3 Things To Look For Before Buying A Property For Airbnb: eAskme |
Many people are doing this instead of becoming landlords.
However, buying a property to rent out on Airbnb is not the same as buying one to rent out to long-term renters.
It takes a bit more understanding of how the system works to make money from it. When it does work, it can make a lot of money.
In this article, we will go over what it takes to invest in an Airbnb property.
1 - Pick the right location:
Location is important for any real estate investment, but the factors that make a location ideal differ for Airbnb.
It's important if you are looking at real estate in VA, for example, to pick an area with short-term renters rather than people looking to rent long-term.
The key is to look at two different types of areas. One is to buy where there are points of interest for tourists and travelers.
If the area attracts a lot of tourists, then you will be able to get lots of bookings. The other is to focus on an area where there is a good amount of business travelers to the area.
Stay away from suburbs where there is not much to attract people looking for an interesting experience as the needs of the people there are not what you are offering.
People opt to stay in an Airbnb over a hotel so treat it the way a hotel owner would and only focus on where you will get nightly or weekly bookings.
2 - Buy the right type of property:
The type of property factors highly into how often it will be booked.
This is because you have to understand the needs of the type of traveler a particular area attracts and buy the property that best suits them.
For instance, a big house will not get booked much if the area attracts backpackers doing budget travel.
On the other hand, if you have a small studio that fits their budget, it will be solidly booked all the time.
3 - Price it appropriately:
Unfortunately, you will not be making as much money as you should if you don't price your property correctly.
Pricing too low will leave money on the table since people would be willing to pay more if you let them.
Pricing it too high will result in fewer bookings because they have cheaper options.
Finding the sweet spot in price will come after researching the area properly.
Take some time to see what other owners are charging for the same property type in the area.
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