Here are 6 benefits as to why Airbnb is still a great investment.
There is a High Demand for Short Term Rental
Vacation homes are more appealing to tourists and business travelers. They seem to those who are looking to stay-cation as a cheaper alternative to hotels due to better accommodation. If you’re looking to invest in a home for an Airbnb, this is a strong factor to consider. Especially in a high demanding vacation location where the demand is consistent all year round.
The Return Rate is Higher with an Airbnb Investment Property
When purchasing a home for this kind of investment, it is important to consider location. The better location, the higher the tourist is willing to pay for a short-term rental. Locations near the beach, cities, and popular shopping areas are great areas to purchases homes as the demand is never-ending. Even with the work to maintain the short-term rental, the cash flow will generate more than annual or monthly leasing with the steady flow of guests. This will bring a higher return on the investment.
You Are In Charge of the Price
The reason why Airbnbs is so attractive to real estate investors is due to the flexibility of creating your own prices. Once you have a tenant in your home with an annual or monthly lease, you are not able to raise or lower the prices based on the market. Owners of Airbnbs have the ability to change their rates based on how they see fit in regards to location, the amenities/features, and the market. When the market is high in demand, owners can raise the prices to maximize profit. Once in the off-season, the rate can be lowered to accommodate and attract more guests to avoid a high vacancy rate. By studying the market, this can be strategized on how to obtain the best return rate.
There is Flexibility
With Airbnbs, you have the flexibility how much of property you want to rent out. Many investors still live in their homes while allowing Airbnb guests to use a portion of their homes. It also allows for you to choose which dates are not available if you’d like to have the home for personal use.
There is More Control in Maintenance
Because of the quick turnover, this gives investors the ability to discover, resolve or maintain maintenance issues. Unlike an annual or monthly rental, homeowners cannot address issues that are not submitted by the tenants which may result in more money being spent at the end of the contract. This can be avoided with short-term rentals. Airbnb hosts can also charge accordingly for maintenance and cleaning which keeps the home in better condition throughout the year.
Having Airbnb Guest is Less of a Risk Than Having Tenants
With tenants, Owners could come of risk of them refusing to pay rent. The only way to remove tenants is by evicting, which is a lengthy and costly process. With Airbnbs, the guests are revolving and pay upfront for their stay. This is a guarantee of payment rather than having the probability of months with no rental income.
In conclusion, buying a home to invest in as an Airbnb is more beneficial for real estate investors than annual or monthly leasing. There is more control in your factors with availability, the market, maintenance control, and risk. If you’re looking to have a more successful return investment, choose to Airbnb.
