Air BnB investment is a relatively new concept for investors, and yet it’s one that has gained significant traction over the past few years. These days, more people have learned that short-term property rentals have lucrative potential and are turning to Airbnb’s as a way of boosting their passive income.
If you’re considering trying your hand at this form of property investment, here are a few of the benefits that you can expect and some considerations to bear in mind.
More Profits Than Traditional Leasing
If you can achieve solid bookings for your Air BnB, you’ll reap more profits than you would if you rented out that property long-term to one tenant due to the fact that you can charge a higher amount per night. If your property is located in a popular tourist area or city center, you may find it easy to attract a steady stream of short-term tenants who will bring in an attractive passive income for you.
A Diversified Tenant Portfolio
When you rent out a traditional property, you can have some significant issues if your tenant misses payments or vanishes overnight. With Airbnb investment, though, you’ll be collecting an income from various tenants regularly, with each one representing just a fraction of your total rental income, so if one cancels or fails to pay, the impact will be far lower.
Considerations To Keep in Mind
While your Air BnB investment may be successful in the long term, it’s important to remember that the success may not be overnight. It isn’t always easy to keep your Airbnb booked solidly right from the get-go since many bookings will come from the reputation that you’ve earned as a good owner over time.
If you can achieve high ratings from previous renters, you’ll be more likely to be able to attract new ones. At the start, you’ll have few if any reviews, so it may be harder to persuade tenants to stay. You may have to reduce your rental prices or offer some incentives at first to persuade people to book your property.
It’s also important to bear in mind that, while you may receive an attractive passive income from your Air BnB investment, the income may arrive on an irregular basis rather than on a monthly basis as would occur with a standard long-term tenancy. For example, in a tourist area, you may make a lot of money during the peak holiday periods but then have minimal income out of season.
How Do I Get Started with An Air BnB Investment?
It’s clear that short-term Air BnB rentals can be a lucrative investment, but getting the right professional advice is essential to make sure your investment is a success. Here at Thomas Henry Property Investment, we can help first-time property investors by giving the benefit of our expert guidance, assisting with everything from sourcing suitable properties to carrying out renovations so you can enjoy a hands-free property investment experience thanks to our experience in the field.