Airbnb Real Estate Investing – What Makes It Worth It?
The ownership of an Airbnb investment property is a nice way to make some additional income. In the last few years, a number of cities in the United States have regulated rentals of Airbnb in the form of limitations and restrictions on, how many days one can rent out a property, if your home must be your primary residence or not, if you will pay hotel/lodgers tax, among a few others. Despite such regulations, it can be a worthy and rewarding investment path to pursue. There are lots of cities around the world to make healthy Airbnb investment choices with little concern for regulations. This makes investing in a home in order to Airbnb it, a viable option.
Read on to discover more reasons why Airbnb Real Estate Investing is worthwhile below:
Growing short term rental market
It is important to keep up with trends in the market to be successful in investments in real estate market. Latest studies reveal that the short-term rental market, including Airbnb properties, is anticipated to have a yearly growth of 7.9%. For travelers and vacationers, Airbnb rental properties are getting increasingly attractive, as these come with quite a few advantages than regular hotel rentals.
Attracts more guests
With Airbnb becoming more and more popular and drawing more guests, the purchase of a rental property appears to be a reasonable investment in any city where there is no heavy regulation of Airbnb properties. As an investor on Airbnb, you have to strive to search for an investment property in a major location which ensures a higher rate of occupancy all round the year.
Increase in rental income
It is well known that there is a higher profit potential from Airbnb rentals than regular long-term rental properties out there. As Airbnb properties are rented out every night, the cost per night happens to be significantly higher as compared to a long-term rental. In general the rate at which a long term rental typically may increase over time is much slower and annually and depends on a lease agreement between landlord and tenant. An Airbnb investment property can generate a larger return overall vs. a set rental long term monthly income since it has the benefit of varying rates day to day and especially during popular events when demand is increases.
Duality of use
The ownership of an Airbnb property is also advantageous in the sense that it is great for homeowners who travel and/or are looking to have a secondary home or vacation home. Bnefits of buying a vacation property can include lower down payments, and certain tax benefits. In some cases its better to vacation rent a 2nd home vs. leave it unused since problems can arise. Plus, if you can earn from unsude asset and still manage to use it at your discretion, why not? Addiiontally, most vacation rental platforms and Airbnb allow hosts to block the calendar and choose the dates when their rental properties can be made available , which cannot be done when a long term rental strategy is followed.
Enroll in Rachel’s BUYBNB vacation rental investing course where you will learn the BUYING FORMULA she uses to buy and run successful Airbnb & short-term rental properties.