Guide in Choosing the Perfect Airbnb Investment for you
By Jully Corpuz
4 min read
The short-term rental market is gaining more popularity among tourists for the past decade and Airbnb is one of the most widely used short-term rental platforms right now and due to its flexibility and affordability. More travelers opt to check-in via this avenue rather than the old-fashioned way of booking hotel accommodation. Not to mention the advent of technology which makes it more accessible and convenient. All you need is to download an app, choose from the list of tons of great accommodations, and book your stay.
The above reasons made Airbnb investment a sought-after venture and this article is here to help potential investors in choosing the perfect Airbnb investment.
Types of property
1. Apartment Unit
Apartments are very much common in business areas or central cities. The strategic location of these Airbnb properties makes them more attractive to tourists visiting for either business or leisure purposes.
2. Villa
Before the short-term rental industry boomed, only the wealthy ones could spend their holidays in their villas. Why? Because not everyone can afford to purchase a villa of their own, but thanks to the dawn of the short-term rental, these villas that are ones exclusive to the elites have been opened for rental.
Things to consider when choosing a property
1. Budget
The first thing you should consider in any form of investment is the budget you will allocate in funding the investment. An average Airbnb property costs around $200,000 to $450,000. This is for the usual apartment type property with 1-2 rooms. The pricing of villas or beach houses depends on their location. If you opt to purchase around the Caribbean, expect to spend about $700,000 to over a million to three million dollars depending on the property. If you find that the pricing is a little way too much out of your budget, you may want to consider partial ownership at the moment. This option is great for first-timers who want to test the waters first.
2. Tourist demands
The main purpose of investing in Airbnb is to get more tourists to check-in and rent your property. Be sure to find properties in locations that yield more tourist visitors.
According to farandwide.com, the top 8 most visited countries in the world are below.
- France with 89.4 Million Visitors
- Spain with 82.7 Million Visitors
- United States with 79.6 Million Visitors
- China with 62.9 Million Visitors
- Italy with 62.1 Million Visitors
- Turkey with 45.7 Million Visitors
- Mexico with 41.4 Million Visitors
- Germany with 38.8 Million
Although there may be changes due to the pandemic, these countries are still the dream destination of many around the world.
For those who are considering investing in beach houses, the highly visited beaches according to Reader’s Digest around the world are as follows
- Whitehaven Beach, Australia
- Lanikai Beach, Hawaii
- Horseshoe Bay, Bermuda
- Cayo Coco Beach, Cuba
- Bávaro Beach, Dominican Republic
- Boulders Beach, South Africa
- Bournemouth Beach, United Kingdom
- Pink Sands Beach, Bahamas
- Ao Nang Beach, Thailand
- Playa Paraiso Beach, Mexico
- Dreamland Beach, Indonesia
- Grace Bay, Turks, and Caicos
3. Restrictions
Certain states and countries have laws and regulations for short-term rental. This is to protect their locals and the housing market from the traffic of investors. Be sure to review the laws around short-term rental within your preferred area to avoid hiccups.
Perfect US locations for your Airbnb Investment
Location is one of the key factors in finding any investment property. For a short-term rental to be profitable, it should be located near public transportation, business centers, and shopping centers. Keep in mind that Airbnb is used mostly for vacation reasons so be sure to find properties near tourist attractions. Below are the most popular locations around the US for short-term rentals based on pricing, occupancy rate, and rental income.
1. Milwaukee, WI
– Median Property Price: $161,500
– City Average Occupancy Rate: 54%
– City Average Monthly Rental Income: $1,940
2. Columbus, OH
– Median Property Price: $222,200
– City Average Occupancy Rate: 57%
– City Average Monthly Rental Income: $2,310
3. Indianapolis, IN
– Median Property Price: $221,100
– City Average Occupancy Rate: 52%
– City Average Monthly Rental Income: $2,210
4. Memphis, TN
– Median Property Price: $233,400
– City Average Occupancy Rate: 63%
– City Average Monthly Rental Income: $2,060
5. Philadelphia, PA
– Median Property Price: $304,200
– City Average Occupancy Rate: 54%
– City Average Monthly Rental Income: $2,120
6. Kissimmee, FL
– Median Property Price: $270,300
– City Average Occupancy Rate: 70%
– City Average Monthly Rental Income: $2,560
7. Phoenix, AZ
– Median Property Price: $394,800
– City Average Occupancy Rate: 57%
– City Average Monthly Rental Income: $2,570
8. Eugene, OR
– Median Property Price: $430,000
– City Average Occupancy Rate: 53%
– City Average Monthly Rental Income: $2,660
9. Dallas, TX
– Median Property Price: $406,30
– City Average Occupancy Rate: 59%
– City Average Monthly Rental Income: $2,890
10. Atlanta, GA
– Median Property Price: $426,400
– City Average Occupancy Rate: 45%
– City Average Monthly Rental Income: $2,250
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