Real estate investing for Airbnb rentals is a popular investment that many gurus, and non-professionals alike, have made in recent years. Airbnb has become a popular way to travel and stay. People today are renting out Airbnb properties as much as, if not more so, than hotels or motel chains. Why? It’s that home-away-from-home feeling they love.
If you’ve got some money to invest in real estate, and are considering investing in a property you’ll turn to rent on the Airbnb marketplace, what are the pros and cons of doing so? We’ll highlight some of the primary benefits you’ll derive as a host, and some of the drawbacks you might want to consider if you’re still on the fence of investing in a property for rental purposes.
So, let’s start with some of the primary benefits of owning an Airbnb property you plan on renting out to travelers.
Think about it, you have people visiting from Japan, Russia, Canada, and virtually any other location in the world. Imagine the stories you’re going to hear as an Airbnb host, and the different cultural mannerisms you’ll be exposed to. If you’ve always wanted to be a world-traveler but didn’t have the time to resources to do so, you can bring the world to your backyard! Travelers from all walks of life and regions in the world might visit, so you’ll get a little taste of many different cultures.
You have control of rental dates. Say you want to take your Airbnb property off the market during the holidays. You might choose to do this so you can let the family stay for free during their visit. Or, if you have to do major repair work, you can wait until after the New Year (and all the expenses from the holidays) to tackle those repairs. You have full control of when you list, how much you’re listing for, and when to remove the property from the rental list online.
In many countries, Airbnb offers host protections. Some risks come along with renting to strangers. In the event of guest damage, theft, or other losses, Airbnb offers up to $1 million if you’re a member of their host protection plan in some regions of the world.
Listing your real estate investment property on the website is free of charge. You don’t have to pay fees to a listing website or other third-party sites. All you have to do is take clear, high-resolution images of the property. Incorporate a great description. Include location and amenities. Include the pricing and rental terms. From there, you’re ready to go!
You can see a return on the Airbnb investment property you purchased. Especially if you’re investing in a property that’s in a high-tourist region, you won’t have difficulties renting it out. The rentals can pay your mortgage, HOA fees in the area, taxes, and even costs for repairs that are necessary if you’re renting it out enough. So, list away!
There are also some drawbacks to investing in a home, only to turn around and list it for rent through Airbnb. These are some of the cons.
Think about it, you’re inviting a stranger to stay in your home. You might not be there when they are, but you don’t know who they are. So, you’ll want to do some screening checks, and make sure you know who you’re renting to. It’s not just the fact that they’re strangers. What if they host loud parties or damage the home? It’s on you to do the repair work later on.
If something goes wrong, you’re getting a call at 2 AM to repair a busted pipe. When damage repairs are needed, you’re paying for them. Every and anything that goes wrong, is on you. So, make sure you have the time to commit to it, and that you’re open to the fact that your renters might call at any time, for the slightest inconvenience.
Before you invest, make sure you know the legalities of doing so. For starters, in some regions, you can’t list a property as an Airbnb rental. You might need special permits and licenses before renting. And, if there’s major damage/issues with the property, lawsuits might follow if a renter is hurt on the property. Make sure you’re aware of legal restrictions, terms, and understand the implications if something does happen on the property.
All and all, you can see there are more pros than cons if you’ore considering investing in real estate for the sole purpose of renting it as an Airbnb property. But, you should weigh both the good and the bad, before you ultimately choose to make that investment, to ensure you’re ready to take on the challenges if you want to reap the financial rewards of being an Airbnb host.
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Top Wellington Realtor, Michelle Gibson, wrote: “Pros & Cons of Buying a Home to Airbnb e”
Michelle has been specializing in residential real estate since 2001 throughout Wellington Florida and the surrounding area. Whether you’re looking to buy, sell or rent she will guide you through the entire real estate transaction. If you’re ready to put Michelle’s knowledge and expertise to work for you call or e-mail her today.
Areas of service include Wellington, Lake Worth, Royal Palm Beach, Boynton Beach, West Palm Beach, Loxahatchee, Greenacres and more.