If you’re looking for a way to boost your monthly income, buying a home and using it as an Airbnb rental can be a good investment.
Airbnb rentals are already being used around the world.
The first thing you need to do is
Choose a location
Look for a home in a desirable city close to nearby attractions, or perhaps a property in a beach town close to the amenities renters want.
A good location can only maximize the rental opportunities, and hopefully your income, as well.
To truly boost your profit potential, think about top tourist cities, as well as top locations for business travelers.
Come up with a budget
You also need to come up with a budget.
You need to go beyond the price of the property. Also consider things like
- Closing costs
- Property taxes
- Inspection fees
If you don’t have the money to purchase the property, you need to secure a loan that works for investment properties. A mortgage for a home you’re planning to use as your primary residence is not the same as one for a home you plan to use exclusively as an Airbnb rental.
When thinking about your budget, you also need to consider any necessary future costs to keep your Airbnb in service. Things like
- Cleaning services
- Utility bills
Next, it helps to
Know local laws/regulations
Just because you have a home ready to go doesn’t mean you’ll be allowed to rent it out on a short-term basis.
Some cities and regions have specific rules to follow when it comes to Airbnb rentals.
You may need to get a license to operate, or you may even be forbidden to rent out the property on a short-term basis, depending on its location.
Some HOAs also ban short-term rentals.
You don’t want to be stuck with a large fine, or even the inability to rent out a property, so be sure and do some research before you list the home on Airbnb.
Use a good agent
If you’re ready to buy, consider using an experienced real estate agent. They’ll be able to better navigate the market and hopefully get the best price for your new property.
It helps if you can find one experienced with Airbnb rentals.
Not only can they help lead you to the best properties, but also help you find a good neighborhood and navigate some of the local rules and regulations.
Not all properties work as Airbnb rentals, but doing some research ahead of time, knowing your budget and understanding any local regulations from the beginning can only help with the process of buying a home and listing it as an Airbnb.