1. Have a business plan. Airbnbs are much more labor-intensive than most other real estate acquisitions. Know what you’re getting into and have a good plan together. You may even have to set up an entity.
2. Acquire the property. When buying the property, make sure the zoning laws permit you to have a short-term rental at that location. Some neighborhoods have covenants against this, and some cities and municipalities prohibit it as well. There’s nothing worse than buying an investment property only to hear from your HOA that they don’t allow such things. Some municipalities also require licenses, so do your research and verify whether or not that’s the case in your area.
Airbnbs are much more labor-intensive than most other real estate acquisitions.
3. Set the price of the property, and advertise it in the right places. It’s especially important early on in the process to set a price that will attract a lot of attention. Reviews and pricing are two critical components of Airbnbs, and it’s hard to get people to come to your property if you don’t have any reviews. Build up your reviews, and make sure they’re high quality. Advertising is also key because your property can be great, but if its photos are terrible and you aren’t showcasing the things people want to know about, it won’t matter.
4. Manage the bookings and maintain an accurate record. Taxes will eventually be due, so keep your income and expenses in order. There’s a lot of software out there that can help you with this. Communication is important when managing your bookings—this is a hospitality industry after all. Be prepared to get a lot of texts, calls, etc., from renters asking you questions.
Owning an Airbnb is more like a job than people realize, but if you buy the right property and manage it correctly, it can be very lucrative. Renting out your current home is a good place to test the waters if you’re still not sure you’re ready to own an Airbnb. Several Airbnb rental specialists could help you with this undertaking, and I would be happy to connect you.
As always, if you have questions about this or any real estate topic, feel free to reach out to me. I’d love to hear from you.