The success of your Airbnb business depends a lot on the right real estate. It is already half the battle if you have chosen a good location and successfully invested in real estate. However, this is more complex than it might seem at first glance. The vacation rental business is booming, which means competition is skyrocketing. To be successful, you should carefully study the nuances of short-term rental laws in your area. Or entrust this business to professionals. You can order such services on online platforms. For example, here: https://masterhost.ca/buy-airbnb-property-vancouver/ .
The main advantages of the Airbnb business include receiving a stable income higher than from a long-term lease. With proper management, this will become a reliable and profitable business.
In addition, you can fully control everything that happens in your home. Only you (or your management team) can approve or reject bookings, set prices, or take vacations. You can do it without any restrictions or problems if you need to use the accommodation.
Moreover, you can live in the same area as the guests. In this case, you can specify that you only accept guests of the same gender as you. So you don’t have to own multiple properties to become an Airbnb Host.
Real Estate Search Tips
You need to consider many factors to find the right property for your Airbnb business. Here are some real estate search tips to help you make the right choice:
- Let’s analyze the rental market in the place where you are going to buy a property. In some countries and cities, the real estate rental business is more developed than in others. Perhaps this is due to the attractiveness of this place for tourists, loyal legislation, and other reasons. Analyze the number of active rentals in a particular city, the average price per day, revenue, and occupancy.
- Review the Airbnb Host Policies. This service puts forward certain requirements for property owners. You must have a short-term rental license and pay statutory taxes. Your property must also comply with Airbnb’s cleaning policies. There are also requirements for communication with guests: according to the non-discrimination policy, you cannot refuse customers because of their race, religion, or nationality.
- Check the laws in your area. In addition to the rules for obtaining a license, you should find out what zoning rules, restrictions on the number of guests, or other additional requirements apply to the place where you are going to buy a house or apartment. This will avoid many problems in the future.
You should also draw up a portrait of your target audience. Then you can choose the type of accommodation that will be most convenient for your potential guests.
How to determine the investment attractiveness of real estate
So, you have chosen the city where you would like to start an Airbnb business. How to understand the level of attractiveness of a particular property? Here are a few key factors:
- Proximity to important locations: tourist spots, business centers, recreational areas. For an Airbnb business, this is perhaps the most important indicator on which your profit largely depends.
- Availability of certain amenities that can be specified in the listings. For example, in some locations, houses with a swimming pool are in demand, while in others, it is important to have parking and a kitchen.
- A number of apartments or bedrooms. It plays a significant role, especially if you rent out individual apartments in your home. The more rooms, the more guests you can host.
- Housing condition. If you buy a house with a quality exterior and interior finish, then it is much more profitable than if you have to make repairs, investing a lot of time and money in it.
- Availability of necessary infrastructure nearby. Yes, if your guests come here for a few days or weeks to enjoy a vacation or do important business, they are unlikely to be interested in having a school, a fitness room, and a beauty salon nearby. But proximity to restaurants, supermarkets, transport interchanges, train stations, or airports can be a big plus.
All of these factors can play a big role for your guests. And, therefore, for you.
What to look for in the buying process
If you have decided on the property, you would like to purchase. You should pay attention to such things during the purchase process:
- Compliance with local property requirements for short-term rentals. To do this, you can contact lawyers to ensure that zoning regulations and other conditions are observed.
- If you buy a house or apartment from a developer, you must consider all additional risks and obtain the necessary guarantees.
- If the house has furniture and equipment, you should check their quality. After all, you will incur additional expenses if you need to replace or repair it.
- Estimate the potential income from this rental object: estimate the average income in your area that similar houses or apartments bring. It will help evaluate the return on investment in this particular house. And draw up a competent long-term business strategy that will lead you to success.
You should use the professionals’ services to consider all the necessary nuances when buying a property. So you will be sure of the transparency of the transaction and the absence of pitfalls.
An Airbnb short-term rental business is a great way to earn a steady income. You will be able to flexibly manage your business, receiving guests at a time when it is convenient for you. One of the important steps to a profitable business on Airbnb is buying a property in a promising region. For example, in a city where a famous resort, historical monument, or business center is located.
Therefore, it is necessary to carefully approach the purchase and take into account many factors. You can do it yourself or turn to the services of professionals. The second option is preferable since specialists’ high qualifications and experience will help achieve a good result.