August 7, 2019

What is Airbnb? 5 Ways to Start An Airbnb Real Estate Property Investment Search

What is Airbnb, you ask? Airbnb is one of the leading property rental sites worldwide as it operates in 191 countries and has an online marketplace with more than four million rental listings. Because it offers a stable platform, it is also an opportunity for property owners to diversify their financial portfolio with global Airbnb real estate property investments.

 

Here’s how to start an Airbnb property search:

1.    Search Globally

 

Because of the dynamics of Airbnb’s global database, investors today are searching outside of their local marketplace for real estate investment. Property values are also often higher in other states and countries, and with the help of local property rental management services, owners no longer need to be available to benefit from investments.  Looking for Airbnb property with the most profit also will provide a base for how viable real estate acquisition would be based on location, economics, and marketability.

 

2.    Look For Market Growth

 

Considering market growth is important.With new renters moving into an area, you will likely experience a higher return on investment as well as long-term property appreciation. Tourism potential is also an essential factor to think about. As an Airbnb property owner, you want to choose an area that offers lots of activities. Is there a thriving tourism industry, nightlife, outdoor amenities, or cultural accommodations? Is there a high and low season for tourism that will affect your annual occupancy rates?  When considering market growth, you must also weigh short-term rental viability init.

 

3.    Research Property Values

 

Property value is a crucial component to consider before any Airbnb property purchase. You can compare the price of a property to neighboring structures of similar size and occupancy. You must also think about factors like buying costs, inspections, appraisals, repairs, closing costs, business expenses, and potential real estate management fees.When you compare the prices to the income potential in different areas, you get a better sense of what a nightly rate would need to be to create a favorable cash flow scenario.

 

4.    Look For Traveler-Friendly Properties

 

Travelers prefer a property that is near popular hot-spots and amenities, so you need to consider this element before buying a piece of property. Airbnb property that is located near shopping malls, hospitals, universities, historical sites, tourist attractions and restaurants to allow your guests to have access to appealing amenities that will help to set your property apart from other Airbnbs in the area. It will also provide insight into how profitable a city would be because of supply and demand.

 

5.    Get Help From Real Estate Companies

 

Real estate companies are excellent sources as they have a network of locals who know about land sales. Real estate agents also know the properties that will appeal to Airbnb guests and offer access to amenities. There are also ways they can help you leverage your land to become a prosperous Airbnb property that appeals to vacationers and travelers.

 

Whether or not you choose to invest locally or in a foreign city, you should still think about investing in a property management service and use short term vacation software to manage it.

 

Chang Kim

My name is Chang and I manage operations at Voyajoy. I've been in the short-term rental space for the last four years and have an operations career dating back 20+ years. I've learned about vacation rental management the hard way and have seen how quickly this industry has changed in a very short time. My objective is to use this experience and knowledge to give our valued clients big competitive advantages.

Tags
Airbnb
Rental Management
short-term rental
short-term rental management

Subscribe to our newsletter to stay up to date on vacation rentals!

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form