There can be a huge amount of profit within the Airbnb rental market, whether short or long-term rentals. However, there are some tips and tricks you can learn in order to maximize your profit, bringing in a much higher ROI than on simple long-term leases. Please check out this investor’s guide to Airbnb rentals and see what it might take to do just that.
Cater to a High-End Market
If you are buying homes and apartments as income properties, the best way to make money with Airbnb is to focus on high-end properties. These will usually attract corporate clients and those with the financial resources to afford the higher prices these properties can fetch. If you are going to invest in rental properties, after all, your highest ROI will be those that can give you the highest spread between what you’ve paid and what you are paid in rent. That’s simple real estate logic.
You will also want to furnish your rentals with trendy designer furniture and décor. If you check out the current lines of Prado designer furniture on the Ligne Roset Prado UK website, you will get an idea of just what is meant by trendy furniture. Take care to furnish and decorate your rentals with high-quality products so that renters will be more than willing to pay for a stay in the lap of luxury.
Customise Seasonal Pricing
Another thing you can do is to keep track of on and off-season pricing. There are obviously going to be times when Airbnb rentals, or any short-term rentals for that matter, are in higher demand. Perhaps it’s when a sporting event is playing nearby. Or another concert or music festival is taking place in a city where you have a rental. Summer holidays are always busy, so you can ask for higher prices accordingly.
Then there are the Christmas and New Year holidays where people tend to travel more to take in the sights and sounds of the holidays or simply to relax a bit in the company of family and old friends without actually staying with them. Weekend prices can be higher than weeknights, and so it goes. You can learn how to ‘fix’ your rates on the Airbnb website as well so that pricing happens automatically with little intervention on your part.
There are rental property calculators online to help with these very specific tasks. You should definitely take advantage of the.
Work with Property Management Company
No investor’s guide to Airbnb rentals would be complete without discussing whether or not you should hire a property management company. There will be a number of variables that you will need to weigh against one another to decide if hiring one is worth the money you’ll play.
Some property management teams have rental agreements whereby they become your tenant and are thus responsible for collecting rents and seeing to maintenance and cleaning in between renters. You ‘may’ make a bit less this way, but if you are not paying a maintenance crew to care for your rentals, it might even work out better this way.
The whole point of investing in properties for rentals such as Airbnb is that you can ask higher rents. Additionally, if you furnish your properties well with high-end designer pieces, you can attract business professionals and families who can easily afford higher rental fees. You are investing in income properties, and in today’s world, it seems that short-term lettings like Airbnb fit the bill quite nicely.