By Kai Iris
The purchase of a rental property can be an excellent way to create a second income, and at the same time increase your real estate assets. But not every property represents a good opportunity for an Airbnb business. In deciding on a property, you need to consider more than just the location or the look of the home. You need to consider the profit potential, and the market that you are getting involved with. You also must determine if you have the time to dedicate to what is an occasionally demanding enterprise.
- Location: Although this isn’t the only consideration, it is the first thing you should think of in choosing an Airbnb property. The location should be the starting point, you should look for an area that is popular but not yet saturated with rental properties. Things that give a property more potential are. View, proximity to tourist attractions, nearness to public transit, and accessibility.
- Time: This is a major consideration. Do you have the time that will be needed to manage your property? You can find Airbnb management in Bondi from an established provider and there is more involved than just handing over the keys. You will have to respond to requests from potential tenants as well as the current tenants. They will need linens and toiletries and on top of that you will have to maintain and market the property.
- Character: The character of the home can be an important factor. People are looking for something unique, something with class, and something that will look good in their social media posts. Try to avoid boring condos and cookie cutter homes, this will affect how much you can charge. You will also do better if the size of the home and the number of rooms are suitable for a family with kids, or two couples travelling together.
- Profitability: Once you have a good idea of the cost and payments for the property. A company like HomeHost can help you minimise your expenses. You need to consider all the costs of operation, and then add them to your monthly payments. There are many hidden costs as well and you should plan for an extra 10% monthly overage.
Owning an Airbnb can be one of the best decisions you can make in real estate but you do need to be aware that it is a business and you will get out of it only what you put into it. Fortunately, there are many other people with experience, as well as agencies that know how to help you make a profit. Good luck on your new Airbnb.
