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By Melissa Green | Citizens Bank Staff
Short-term rental properties can be lucrative. However, being a successful Airbnb owner takes a lot more work than meets the eye. There are a lot of considerations to contemplate before becoming an Airbnb host. So do your homework beforehand in order to make your investment a worthwhile one.
Consider the following five tips before you invest in an Airbnb property.
The golden rule of real estate has always been “location, location, location.” It’s important to consider where travelers will want to stay when visiting your city. Accessibility to shopping, restaurants, and other tourist attractions can be a deciding factor in how successful your property becomes. Make sure you do market research beforehand to understand the demand in your target area.
Another significant factor in choosing a location is the legality of Airbnb in your city and state. Listing a short-term rental in a town where it’s not allowed will only set you up for trouble. If you’re purchasing a property that has a homeowner’s association, ensure that operating an Airbnb isn’t against their rules or bylaws. You’ll also want to be cautious of the community climate regarding Airbnb. No one wants to deal with frustrated neighbors.
Maintaining a rental property can be a lot of work. When dealing with short-term rentals, your property will have to be clean and shiny after every guest. Many hosts opt to contract a professional cleaning service to handle this responsibility. While it’s a great option to alleviate chores, you’ll need to calculate this regular cleaning bill into your budget.
Customer service is incredibly important when you’re operating an Airbnb. Positive reviews are an integral part of your success. Things like being honest and responsive to your tenants will go a long way. Remember to treat your tenants the way you would like to be treated while you’re on vacation. Everyone will have different expectations, so be honest about what you’re offering and do your best to accommodate the needs of your guests.
Hosting an Airbnb continues to be a popular business investment all over the world. However, before investing, it’s important to be aware of the rental competition in the area. For instance, if there are ten rental units within a one-block radius, do you really want to enter into that fray? And if you do, how will you make renters choose you? You can start by identifying a few key factors that separate you from the competition. Things like welcome gift baskets, or a list of local attractions might be enough to earn you a standout positive rating.
With a little elbow grease, you could be making money operating a short-term rental unit with Airbnb. You can realistically charge quite a bit more per night than you could for a long-term rental, even during the off-season. However, just like any other type of real-estate investment, a certain amount of due diligence is required on your part. Make sure you’ve considered all aspects of running an Airbnb before you dive in.
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