Reasons You Should Be Investing In The Airbnb Market
With the growth of Airbnb, there's never been a better time to dip into the investment property market than right now.
With the growth in Airbnb, a lot of investors have turned to it as their preferred investment strategy. With the service growing around the globe, it's gained a lot of users and real estate investors alike. The biggest question you need to answer is whether or not it is worth the investment. Find out the key reasons as to why you need to invest in the Airbnb property market right away.
Looking to get started on investing? Contact the Airkeeper team today.
1. It's Profitable
Every real estate investor is concerned with this. After all, if there are no profits to be made, it's not a solid investment. While it can depend on your occupancy rate and the area your property is located in, if you get these things right, you could be looking at something even more profitable than traditional investments.
The financial experts at Concept BK note that the Airbnb property market is largely an underrated investment field that people aren’t aware of. “Airbnb’s model has shaken up the hotel and travel industry, and it’s a market that people can easily make a profit in. It obviously depends on how an individual places their investments, but there are serious profit margins available within the Airbnb property market.”
Because Airbnb lets you charge more on average each night, you could potentially make a lot more than with traditional property investment.
When you are using a service like Airbnb as an investor, you have plenty of ways to pivot. You will be able to use the investment in a multitude of ways. After all, when you aren't actively renting it out to an Airbnb user, you will be able to use it yourself when you are on either vacation or business trips. This can be very beneficial for those who want to help pay for their mortgage with the profits they get from renting it out.
3. Meet New People
When you are an Airbnb host, you can meet a lot of new people. This will allow you to meet people from all walks of life.
Matt Lawson, a social media executive at Sydney marketing firm Search It Local, says that meeting new people through his Airbnb property has altered his perspectives on life and work. “It’s such a big world out there, and to invite people from all walks of life into my home has allowed me to gain an understanding of different cultures that exist. It’s also been fantastic from a work perspective, as I’d sometimes run ideas past the people who’d rent from me to get their thoughts and where I could improve.”
You will be able to expand your horizons and get experiences that you wouldn't normally get from going the traditional route.
4. Passive Income Opportunity
If you start renting out your property on Airbnb, you will be able to turn it either into an active or passive investment. If you want to passively invest in it, you will be able to hire a manager to handle it for you. You will need to factor in the expense of hiring one to ensure you are making money, but it can be a great way to earn passive income.
5. More Control Over Maintenance
While you will certainly have to deal with fewer long term costs associated with renting out to longer-term tenants, you will typically lose a lot of control over the condition of your property. After all, the tenants are going to have a lot more leverage and you won't have as much say in the property or its condition. This can make your maintenance issues skyrocket because you won't be able to check up on your property weekly like you would an Airbnb property.
6. Greater Options
Another good thing you are going to be able to get is the ability to have a lot more options to use it. When you are an investor and you are using Airbnb, you can choose to either rent out single rooms or the entire property.
A lot of people who start end up using their own homes as rentals. No matter if you are living in the home or not, you will be able to have dates blacked out at your convenience.
7. Demand Is High
When you are an investor, you are looking for high demand. There is a very strong demand for these types of short-term rental properties.
Adelaide-based osteopath Nikole Grbin has used this to her advantage. “As soon as I list a room, it’s snapped up within minutes. Even with a slight rise in my prices, someone is ready to poach. I could easily book out the room for months at a time, and I really enjoy the flexibility.
A lot of people have become accustomed to looking for more affordable alternatives to hotels and other shorter-term stays. Thus, you can leverage a market that is constantly growing.
Investing in the Airbnb property market shouldn’t be hard. It should be an enjoyable process for you, and with Airkeeper, that’s exactly the service we provide.
Whether it’s helping you with an investment strategy, providing corporate rentals or anything in between, get in touch with the Airkeeper team and discuss your options today!