If you’ve been thinking about buying your very first Airbnb investment property, you’re probably dreaming of filling it with guests and collecting a profit.
However, there are some common mistakes you’ll want to avoid when buying your first Airbnb investment property.
- Not doing enough research
The number one mistake buyers make is not doing enough research on the property and its location.
This is not the time to purchase a property for emotional reasons. You really need to do some research ahead of time to determine the most profitable location.
You need to look at the
- Overall location
- The neighborhood
- Nearby amenities
Think about the kind of renter you’re hoping to attract, too.
It doesn’t make sense to purchase an investment property and try and market it to spring breakers when it sits in a quiet neighborhood filled with retirees.
- Not checking local laws & regulations
Another common mistake buyers make is not checking out the local laws and regulations first.
Some cities have recently started cracking down on short-term rentals. You definitely don’t want to purchase an investment property, only to find out that renting it out as an Airbnb isn’t allowed.
- Not understanding all the work involved
Buying an investment property can be a lot of work, and you need to understand that going in.
To really showcase your property in the best light, be prepared to create some
- Great marketing copy
- Great photographs
You also need to be ready to spend some money to furnish the property attractively and fill it with the added amenities potential renters want and desire.
In addition, you need to make yourself available to your guests.
- Respond to questions and concerns quickly & accurately
Managing an Airbnb investment property means taking time to understand the needs of renters and then responding to them accordingly.
- Blowing your budget
Another mistake is not considering your budget and sticking to it.
Your monthly mortgage isn’t the only expense to worry about. There are also other fees that come up, including
- Maintenance costs
If you can find a vacation rental property that only needs minimal repairs and is already furnished, you may be able to better budget your expenses down the line.
- Not having a backup plan
While it can be exciting to book your first guests, you don’t want to put everything you have into the property, only to see it sit unoccupied.
It helps to have a backup plan just in case you don’t have a lot of guests booking your property right away.
Because you still need to pay the mortgage, an emergency fund can help provide a little cashflow until you get your first Airbnb investment property up and running.