Incorporated in 2008 Airbnb now stands as a trusted platform for the lodgers. Airbnb business offers a great opportunity to earn more. But in most cases, you may have to make an investment in the form of buying properties. Investing in Airbnb business property is an opportunity but at the same time, you need to be very careful also. Here is a step by step guide for buying an Airbnb business property.
The process can be divided into two stages –
1. Pre property search stage
The steps involved prior to real property hunting are vital. The whole world is filled with wonderful opportunities. Thus, at first, you have to select a suitable area. Before you choose from the sterling catalog of Airbnb business properties, you have to ask yourself certain questions at each step.
Have you researched the local real estate market?
You should always remember that the property you are searching for is a potential Airbnb business property. A realistic understanding of the local real estate market is crucial. If you want this investment to turn profitable then you need to research the local estate market, home prices, and demographics. Always keep in mind, Airbnb guests expect only the best from Airbnb.
Are you approved for a loan?
Investments are a great way to improve your income. But first, you should find out how much you should invest? If mortgaging is a part of your investment plan then pre-approval for a loan is mandatory.
How much the renovations will cost?
The cost of renovation depends on many aspects including the age of the building, condition of the property, the extent of renovations, etc. Though this is an investment opportunity, your ultimate goal should be to provide a cozy staying experience for your guests. Airbnb offers living quarters that are as comfortable as a hotel room and as cozy as your home. This you will have to match with the help of renovation. Thus, always consider the potential renovation charges.
Figuring out the legal concerns?
There are some rules and regulations set for the short term accommodations in different cities, states, provinces, and countries. Before hunting property in a specific area you need to be well informed about these legal aspects.
Are the insurance and tax concerns sorted?
When you own an Airbnb business property, you have to deal with legal requirements such as property tax, business licensing, permits, and insurance regulations that may apply to your property. It’s always recommended to sort all the insurance and tax concerns in advance.
How much earning will lead to the break-even point?
The prime aim of investment in an Airbnb business property is to increase your income. But initially, your goal will be to reach the break-even point. Before looking for the individual properties one should calculate how much earning will turn a mere investment into a profitable Airbnb business.
2. Property search
Congratulations! For selecting your eloquent area. The next stage is to analyze every property for sale in that area. Now, when you have narrowed down your options, let’s compare them using the following flow.
First, compare the location
Airbnb is open to both leisure and business travelers. Thus, the location should be convenient for both. Your property’s location should be flanked with amenities like transportation, shops, restaurant, and recreational activities. You should always prefer a location that will attract a wide range of travelers.
Then comes the size
The preference of size depends on your budget. Firstly, hunt for a size that you can manage efficiently. Secondly, consider that the size of your property affects the number of bookings. And finally, choose the size that is not too large to manage and not too small that will not bring any profit.
Next is the number of bedrooms
In the Airbnb business, as the number of bedrooms rises, the booking prices also increase. Whenever you are buying a new property, look for the maximum number of bedrooms that lie within your budget.
Amenities should be unique
A traveler will only choose your property if they are intrigued by its amenities. To get the maximum number of bookings in that area you have to find a property with amenities that will astonish the guests. Some of these include private rooftop, outdoor entertaining areas, unique design and the beautiful scenery of the nearby harbor, city or mountains.
Now check for the access and maintenance
The property should be easily accessible for your guests. The best option is to offer a self-check-in facility, that will ensure both your guests’ convenience and the property’s safety.
Airbnb is a place for a relaxed experience for both its guests and hosts. By taking care of these, you can expand your Airbnb business opportunities and your guests will also have a great time.
All these can be tough to manage all on your own. Airbnb Management Software can relieve you from a lot of burdens in this respect. It’s features like Airbnb booking management and Airbnb Channel management can make a lot of things easy for you.