Airbnb revolutionised the hospitality industry. But, is investing in property to become an Airbnb host worth your time and money? Let’s consider the important factors that go into investing in property for an Airbnb.
Investing in property
Investing in property is one of the most robust financial investments you’ll ever make. Whether it’s a small property to rent out, or a large home to pass on to your family members as part of your estate, investing in property is an investment that makes a difference.
Investing in property is a sound financial decision, because:
No matter the financial climate, investing in property is always a good choice: Even through several global financial crises, and the COVID-19 pandemic, investing in property remains a solid choice. Financial advisors agree: investing in property is one of the best ways to invest your money.
You build your asset portfolio: Building an asset portfolio is important as you work to ensure your financial future. The more you’re able to invest in property, the better you’ll be equipped to make sound financial decisions and ensure your family’s happy future.
You move up the property ladder: Buying your first home is an adventure, and investing in another property is a whole new adventure. By investing in property, you’ll move up the property ladder and give yourself an advantage over first-time homebuyers. Backed by your experience and a growing asset portfolio, you’ll be ready to explore new opportunities in the property market.
Investing in an Airbnb
Airbnb revolutionised the hospitality industry and has created countless opportunities for property owners. What was once a small holiday home by the beach, is now an opportunity for your family to enjoy a second income. Of course, becoming an Airbnb host is not as simple as that, because it takes commitment and time to ensure that your property attracts guests and keeps them happy. Luckily, there are many ways to ensure that your Airbnb attracts the right type of guests, and ensures they enjoy their stay.
These include:
Your listing: The right type of property attracts the right type of guests, and much of this will be dictated by the kind of property you choose to invest in. But, panoramic views of the ocean and a well-fitted kitchen are just the start of your Airbnb journey. Your listing on Airbnb should be comprehensive and cover even the minor details that you think guests may find interesting. For example, if your Airbnb is located within a conservancy, include a sweet mention of the birdlife your guests can expect to encounter during their stay.
Your management: Investing in property is not a mere financial transaction. And, when you invest in property to become an Airbnb host, it will take extra time and attention. If you’re keen to become an Airbnb host, but are concerned that you won’t be able to manage the day-to-day operations of hosting, consider hiring a professional Airbnb manager or consultant. They can help take the hassle out of your Airbnb operation. If you’re keen to manage the day-to-day operations of your Airbnb yourself, make sure you fully understand the ins and outs of being a landlord and a responsible Airbnb host.
Your guest preferences: Getting the best financial return on your property investment will also depend on the guests you seek to attract. If you’re looking to attract the holidaymakers, adjust your listing and property facilities accordingly. If your investment property is suited to families, be sure to include facilities that are family-friendly, and choose an investment property that’s located close to family entertainment spots.
Airbnb rental options
Investing in property to become an Airbnb host offers you an abundance of opportunities. The demand for short-term stays and longer-term rentals may differ across region, area, facilities, or property type. Before you invest in a property to become an Airbnb host, decide which type of guest you’re keen to attract, as this may have an impact on your financial returns.
Your Airbnb schedule
Here’s the great news: if you’re investing in property to become an Airbnb host, a fully booked schedule can offer you great financial returns. Typically, a month’s worth of rental income from an Airbnb property could bring in far more than a traditional rental, especially if your schedule is fully booked.
Your capabilities
The success of every financial investment you make is directly linked to the time, effort, and attention you pay to it. Investing in property to become an Airbnb host doesn’t stop when you submit your listing and manage your guest bookings. Instead, finding ways to improve your investment property and ensure it stays in excellent condition for your guests is vital. You may want to consider:
Using off-season, or quiet times in your Airbnb schedule effectively: Whether you block out certain times every year or take advantage of a quiet period in your bookings, use that time to upgrade your Airbnb. Fresh linen, a coat of paint, new decor, or renovating your space will pay off well in the long run.
Changing your facilities: If your Airbnb property is fully self-catering, consider offering guests a meal or grocery delivery service, that takes the hassle out of their holiday. This could be an attractive option, especially for holidaymakers.
Monitoring your competition: Keeping an eye on Airbnb properties that are situated close to yours, or offer similar facilities, is important. Make sure to regularly browse the Airbnb properties that match yours in some way, so you can remain competitive in terms of offering, price, and facilities.
For more advice on investing in property, or to learn more about becoming an Airbnb host, visit our Advice Centre.