Airbnb is a killer investment strategy for some of you out there. It can really beef up some of those under-performing real estate assets.
Whether you are a seasoned investor looking to convert a few centrally located rental properties, or you own a 2nd home that may never see returns, Airbnb is a great solution for many.
The earning power of an Airbnb home is incredible and can likely offset the entire amount of your mortgage, not just for a month or two, but for an entire year and then some! Here are the 3 most common ways my clients see bigger ROI’s on their investment properties:
1. ROOM RENTALS:
Many landlords that I come across are sick and tired of having their properties ruined by irresponsible tenants. Instead of renting out rooms to tenants who have less of an interest in protecting your asset, consider the ideal Airbnb guest who is held accountable for their stay. Each Airbnb guest is reviewed by you, the host, and vice versa after their stay. These reviews are available to the public via the Airbnb.com app & website. Uses reviews go both ways to create a convenient and safe checks and balances system for both parties. Essentially, reviews encourage both parties to uphold a standard of excellence.
2. ENTIRE HOME:
Airbnb makes for one of the most ingenious ways to earn extra money on an asset and essentially offset an entire mortgage for each individual property rented. Often times Airbnb properties are seeing double, if not triple or quadruple returns. Generating Airbnb income is considered active income versus passive. It will require you to put in some hours to keep it going but in many cases its totally worth it. Airbnb requires your guests put down a minimal deposit as a safe guard for any minor damages and also provides an extra 1 million in automatic liability insurance for hosts.
3. PRIMARY HOMES:
What could be better then earning extra income off an idle asset?! I still cannot find anything that beats it! Many homeowners have an extra room, a walk-out basement or carriage house that could be short-term rented for a small fortune on Airbnb. The income can be used in so many wonderful ways like paying off annoying debt, student loans or credit cards. It can also be used to fund a retirement plan tax differed! Empty nesters and baby boomers can re-ignite their zest for life by starting a fun side home rental business. As I tell my clients, anyone can do this if they like people and don’t mind putting in the time and care to host guests and turn strangers into friends.
Are you an Investor, Landlord, Host, or Home Buyer looking for a solution to your real estate property? If so, Consider joining my Airbnb House Hacking Tribe FREE. Find out my Airbnb House Hacks HERE.
About the Author:
Rachel Prince is a licensed real estate broker living in Indianapolis, Indiana. Rachel works as an Associate Broker for F.C. Tucker & Company at the downtown Mass. Ave. office located in the heart of downtown Indianapolis. She helps her clients make smart Airbnb Home investment decisions. She can be reached for consults here.
F.C. Tucker Company
Indianapolis, IN 46204