AirBnB is getting popular these days, isn’t it? Investing In Real Estate For AirBnB is a growing option among most Realtors these days. Well, maybe it’s because of the idea of renting whatever you own for a price might seem like something you like. Who wouldn’t want to monetize their household appliances? AirBeds were advertised in the early days and now, it is growing to something much more fascinating.
Everywhere you see, some form of Airbnb is present. Right now, more than 4 million investors are willing to rent out their properties in the form of Airbnb. Even tents with lake views, alongside castles and rooms in ancient war-grounds, runes where tourists can have a lot of fun are present in the AirBnb sites.
But what if the same can be said for Realtors. What if the concept of AirBnB can be implemented in Real Estate. Who wouldn’t want to have something that can provide the comfort of home anytime, anywhere, whenever you might want it.
Started Out With An AirBed
Like many other great companies that have their origins in a garage, this specific company originated from an apartment in San Francisco. Two Roommates, Brian Chesky and Joe Gebbia, found themselves in a fit. They were unable to pay the rent for their apartment. They inflated one of their air mattresses. (Airbeds which in turn led to the Airbnb, the name of the company).
The initial idea was to have a website. Put up the Airbed over there as an alternative to travelers for the higher budget hotels. Now, they’ve come a long way from there and are far away from having any difficulty in renting an apartment in San Francisco.
Their Company is also on the way to provide an Initial Public Offering. Increasing the possibility of coming into the stock market. Currently being valued at 31 billion dollars, it is a good choice of investment many realtors are considering.
Initially starting out as a small company, it however, as of recent statistics, has more than 4 million listings. They have also bought small companies. Ranging from local villa rentals to technological firms to strengthen their hold for both the financial as well as technological future.
The Main Factor Affecting The Profits from Any Real Estate Property
Location is the main factor affecting any Real Estate Property. What would you go for? A large number of houses in a region with low rents. Small amount of houses with greater rents than the former. Surely you would go for the ones where the prices are lower. Places with less amount of hotels will give you a better profit if you place your hotel there. Demand increases supply which in turn increases the profit.
Places like these that are listed on the site usually incur a huge amount of profit. These are the kind of cities you should be targeting to set up your million dollar portfolio. Few American cities generate a great amount of profit depending upon the places of the listings.
Listing Your Property For A Greater Price For A Limited Time
AirBnB is best for a short term rental, where it is most profitable. If you take a closer look at both long term rental and short term rentals in AirBnB, you can find a fine line of prices separating the both of them. There are many people who are listing their properties in the AirBnB site for a greater price for a relatively short period of time.
Take a house for example. Based on the demand for a particular place, the price of the property varies. You list it on the AirBnB for a price of about 600$ per night. This would amount to about 18,000$ per month. This, in contrast to the long term monthly basis, will amount to and not more than 1,800$.
What would you pick? AirBnB right? The one which gives you the most profit is the one you would want to go for.
But this is usually not the case and it all comes down to the location. If the place was a popular tourist location, then there is a relatively huge possibility that it can give you the profit you want. Hence,.. location.
Panama – Investing In Real Estate For AirBnB
What if I told you there was a place currently growing in popularity and has the potential to give you the profit you would want to see in your income. Growing not only as a tourist location but also as a center of excellence, this plot of earth is on the bright side. A place for budding entrepreneurs and realtors, this place is growing in it’s popularity and is swamping up realtors and investors from all around the globe.
Not only as a place of investor haven, it’s also a place where nature has made a pretty good art. Particularly the Nomad Beach which you might want to take a look at if you want to invest in Panama. Because investing in Real Estate For Airbnb can go a long way but it should be a profitable one like the ones at Panama.
Long Term Investment might Trump here as well
AirBnB screams short term investment. As such, using it for a longer term might not be a good idea. If you are in a tourist location and you found yourself with a piece of land you can list in the AirBnB site, then consider yourself lucky. You can also convert anything from your garage to your household for AirBnB. A Nice source of passive income if you think about it.
But at the same time, if you cannot find a property in a popular place, then you are better off with a property that can give you a profit overtime. In this case, you can find a property that is on the constant growth of popularity and invest your money there and drive a great deal of profit from it.
I hope you now know why Investing in Real Estate for AirBnB can be a very good option for your investment portfolio and boost your profit if you are into short term rentals. If you need anything, let me know down in the comments below.
Frequently Asked Questions
Absolutely! Reason? Short Term Rentals is constantly growing in the market. If you have a property in a tourist or a vacation location, then you my dear sir, can consider yourself lucky. You can list it on the site for a great short term price which can prove to be a good source of passive income.
You can expect an average income of about 20,619$. This is the average profit you can get by hosting two bedroom apartments or houses on AirBnB from the analysis of over 15 cities by SmartAsset.
It depends. Usually if you have a piece of property in a well known tourist spot, you don’t even need to invest a thing. It is as we have told you above, you need to have a good demand for the place if you want to see a cash flow.
Yes of course they can! In fact, many of the real estate agents are getting requests to recommend properties that can be listed on AirBnB. Who wouldn’t want to make a profit from everything they own? But it doesn’t depend upon the kind of Real Estate Property but rather the location and the demand people have for such a property.
You might need to register on a federal or a regional level in order to run any successful business and this includes AirBnB as well. But now that AirBnB is so popular chances are that you don’t need one to list your property on the site. Your Real Estate Agent can take care of that for you.