Are you considering buying a property with the purpose of turning it into a successful airbnb? If the answer is yes, then you need to carefully think about several factors that influence the eventual success of your rental property. And it’s not just a matter of choosing the airbnb close to your home, or in your home. There are certain laws you need to abide and finances to consider when buying, keeping up and maintaing your short term rental property. However, don’t hesitate to look into it, because you don’t have to be a professional realtor in order to make a great purchase.
Keep on reading to find out what are the most important factors to consider, and what to do every step of the way.
- Location, location, location
It’s all about choosing the right location that might be appealing to potential guests. For this, you need to think like a client. You need to put yourself in their shoes and think where you would like to stay.
First of all, if you have the luxury of choosing between cities, think about which one is the best place for a super-successful airbnb. Do you want to become a host in a big tourist city, or a small town near a ski-center or the beach?
Next, think about the neighborhood. Make sure to do the right research, and find out which neighborhoods are tourist friendly.
Also, think in terms of streets. If you can buy a property near or on the main street, you can expect to see a great interest in your airbnb.
- Tourist Location
When scouting for the perfect place to purchase your first renting property, pick a tourist location which attracts lots of visitors. If you don’t live in an area that’s popular to tourists, think in terms of business centers, shops, restaurants and desirable locations. If you buy a property that doesn’t offer an authentic experience that might be appealing to guests, such as scenic view or tourist sites that are near the property, than you might not have a lot of bookings coming your way.
- Who Will Take Charge?
Once you find your desired property and purchase it, the next thing you’ll have to think about is magagement. Who will take charge of managing the airbnb? Do you have the right resources to turn it into a successful short term stay? Do you have the right amount of time to dedicate to your airbnb? Every good airbnb host knows that to run a successul airbnb, it takes full-time dedication.
If you know that you don’t have time to run it on your own, think about hiring someone to help you with management. Hosting guests requires you to be at their disposal at all times, in case they need something, or in case of an emergence. Therefore, it’s best to either dedicate a signifacant amout of time to creating your listing, fursnishing and decorating the place, managing bookings, preparing for guest’s arrivals and being there for them in time of need.
If this is not an option for you, there are plenty of companies that offer management services, that can help you with check-ins, bookings and planning.
- How Much Are You Willing to Spend?
How much you are willing to spend when purhcasing a new property depends on your personal financial situation and is based on the location, the state of the property and many other factors. It’s best to hire a contractor that will give you the right estimate. You can either find one that does this pro bono, or hire a contractor that will give you the best possible advice when buying a property, since he can point out all the pros and cons of the property and location itself. But once you already buy it, you need to make a precise plan on how much finances you’re going to put into polishing the place up to look attractive to guests.
Once you determine your budget, and make sure it’s a reasonable one for your situation, you can make plans and buy the right furniture, decor, pay taxes and so on. With a steady plan like this, you’ll avoid going overboard and ending up digging yourself out of debt for the first couple of months of your business.
- Will It Be Your Primary Source of Income?
Since hosting an airbnb is a full-time job indeed, you need to think about how to make money with your airbnb and whether you want this to be your primary source of income or just something that will be an additional source of income to your bank account. While renting out a property can be quite fruitful, it does require, as we mentioned earlier, a lot of patience, time and dedication if you actually want it to be financially fruitful.
Consider the fact that you’re going to have a lot of costs coming your way, from cleaning fees basic essential that you provide to your guests, extra touches, taxes etc. Whatever you decide to do, you need to carefully plan it, and make sure that you’re not losing money, but rather making it. That’s why you need to be really tentative to your guests, in order to get good reviews so that your airbnb stays booked up most of the time.
Every airbnb host knows that hosting is a wonderful experience, that holds numerous benefits, but also demands a lot of hard work. Buying your first property is exciting but can be scary at the same time, so before you take the big leap, remember, those bookings aren’t going to come on their own, so be prepared to roll up your sleeves and work on becoming the host extraordinaire.