People who have invested in Airbnb have made a huge fortune with short-term rentals. But, it’s not all that easy – there are a ton of things that most real estate investors ignore, which results in loss of their money. Like any other investment, Airbnb also needs due diligence and a strategy.
If you’re planning to invest in Airbnb properties, then you’re in luck as we’ll be sharing some of the things that you should know about before you invest in Airbnb properties today.
Don’t Jump Right Into It
Every real estate investor’s dream is to make millions overnight, but sadly, that’s not how it happens. The same is with Airbnb investment. Before deciding to invest in this particular market, ask yourself that do you really want to be a part of it at all? While we could help you in deciding but only you and you alone should answer that.
Just like any other business, you need to start small. Don’t jump right into it as that never turns out good for anyone. When making a business strategy, consider the pros and cons of investment in Airbnb properties. Doing the proper research before investing in this market will help you understand it better and make it easy for you to decide whether to invest or not.
There Are Regulations Involved
Yes, you heard us right – there are regulations involved, and we recommend you understand them before you invest in Airbnb properties. In some cities, it is restricted and even illegal to lease properties on a short-term basis. These cities include New York, San Francisco, and Santa Monica. In these cities, it is illegal to rent out properties unless the permanent tenant or the owner is residing in the property while it is being rented on Airbnb.
If you don’t comply, you might be subjected to harsh legal consequences that could ruin your future in the Airbnb market. We don’t say this because it could happen, we say this because it has happened to Airbnb investors and, as a result, they had to pay hefty amounts of cash in fines. So, be careful and understand the regulations before you plan to invest in Airbnb properties.
Tough Competition
If anyone has told you that investing in Airbnb is the easiest way to make insane money, then let us tell you that you’ve been fooled. The Airbnb market is very competitive, just having a rental property isn’t enough, you should know the art of marketing it as well.
Airbnb claims to operate in almost 65,000 cities with more than 3,000,000 listings. So, how could you make your property stand apart? Let us tell you a little secret. Airbnb market runs on reviews from people who’ve rented your property. In order to get a good review from them, you need to spend a little extra, like quality beddings, professional photography, welcome basket, bathroom accessories – all of this coupled with the right marketing will surely make your rental property stand apart from the rest.
