11th August 2022
Things to Consider Before Buying an Airbnb Property
The ways you can invest in real estate are numerous. If you’re interested in properties and hospitality, and have the funds to invest, you should consider buying an Airbnb property. Owning a short term rental can be a good side hustle, or even a profitable, high end business.
If it’s done right.
It’s important to understand what goes into an Airbnb property investment before you buy. Early mistakes can shoot down your whole business before it’s’ off the ground. Read on to find out how you can avoid the pitfalls and make your Airbnb dream come true.
- Know Your Surroundings
Certain areas just work better for Airbnb properties, particularly when sorting which landscapes would work well with short term rentals, and which ones work best for a tenancy situation. Research your area, especially the neighbourhoods and its’ surrounds, and decide from there whether a short term rental would be ideal.
Additionally, there should be some tourism opportunities that you can’t miss. Airbnbs are increasingly becoming more popular because they have better options over hotels and motels, such as individual cooking and more comfortable lodgings.
Business travellers are also more prone to Airbnb bookings due to their affordability. If your area has a lot of conventions, or business travellers looking for an overnight stay, then you should have a strong customer lineup.
- Buy the Right Property
Not all property types will work, so you’ll have to get pragmatic with this one. Look for properties that match tourist attractions or hotspots that suit the locals in the neighbourhood. For example, if you’re buying near a forest or somewhere with lots of natural landscapes, you’ll be mainly attracting clients who love the outdoors, such as camping and hiking. So you probably shouldn’t buy a studio apartment block. In that case you should instead buy a cabin or another smaller, natural property type that suits your customers’ needs.
Business travellers will of course have different needs, but the point still remains. Whatever customer you are trying to attract, you should be thinking of their needs and their wants, down to the type of property you want to buy.
- Buy at the Right Price
Prices can really make or break your profit margin. Pricing the property out to make sure you get a profit is very different to buying a property with an asking price that is far too high, meaning you won’t be able to rent it out.
Research the housing and accommodation market to understand what prices properties in the area are going for, what type of properties there are, and how you can compare these to your own budget. This will not only help you narrow in on what you should be investing, but the asking prices that you’ll want to rent your property out for.