AIRBNB INVESTMENTS: EVERYTHING ABOUT IT
Airbnb investments, how does it look like? Well, with the rapid growth in air-hosting and short term rentals, Airbnb has become a popular choice for big and small investors. Airbnb encourages everyone to become a host by providing easy access to millions of travelers across the world. We all have heard success stories of people who have earned significantly through Airbnb.
Getting your Airbnb investment up and running isn’t as simple as you might think. There’s much more involved than simply buying a property, listing it on Airbnb and welcoming guests. There are plenty of questions that need to be answered first to figure out what obstacles are in the way.
AIRBNB INVESTMENTS: IS IT A GOOD INVESTMENT??
Airbnb started in 2008 with two people. In 2019, it is a huge industry with more than 4 million listings across the world. According to Forbes, the current worth of Airbnb is $38 billion.
In the past decade, the number of people hosting through Airbnb has increased immensely. More people are planning to join a fast-growing industry. Let’s look at some of the factors important in investing in Airbnb.
- Location of Property:
If you are interested in investing in Airbnb, you first need to have a property that you can rent. Airbnb makes it easier for everyone. You don’t necessarily have to own a house to rent it. You can start with a spare room in your house.
It is also important to see where your property is. Is that a place that attracts visitors?
- Requirements & Expenses:
Every city or state have different rules when it comes to short-term rentals. Since Airbnb works globally, it is hard to stick with one set of rules. Each host has to consider the rules of their city/state before listing their property.
If you already own a property, you don’t have to invest a lot in the beginning. But to make your space a perfect Airbnb, you need to invest in some essentials. There are some amenities that you have to provide in your rental space.
Moreover, once you start renting, there are some recurrent expenses for maintenance, cleaning, and repairs.
- Income & Profits:
Your income depends on your location and the short rental market in your area. If you get a few guests in a year, it might not be enough to make a substantial income.
Whatever income you make, you have to figure out if the profit you are making is worth the effort and time that you are investing in the hosting business.
- Competitive Market:
The most important factor when considering an Airbnb investment is to analyze the market around you.
How many Airbnb places are already there in your area?
How frequently do visitors come to your city?
Do tourists come throughout the year or only during a specific season?
How can you make your listing stand out among your competitors’ properties?
In short, you have to understand various market trends to figure out if Airbnb is a good investment for you.
Airbnb investments has grown immensely over the past decade. The market still has a lot of potential for future investments. The whole experience differs greatly depending on where you live. These factors can tell you where to start when evaluating things. For a better assurance in your Airbnb investments.
In order to make a large profit, it is important to take into account all the factors that come into play in the Airbnb business. And to be a great host and increase your business cap, you may want to know about the Growth hacking of Airbnb. Have a look, it is quite intriguing.
Image References : https://propertyupdate.com.au/property-investing-and-airbnb-the-great-unknown/