Saving up for retirement can seem like a daunting task. To build a proper nest egg, investors need to be actively involved with their retirement plan, and one way to have successful, long-term income is through property investment.
Vacation rental properties are a great way to pull in passive income. Airbnb properties make solid assets for your portfolio and over time, real estate investors can experience an excellent return on their property.
Of course, you can’t just buy any property and hope that it will work out. Property investment can be pricy, but if you play your cards right, you can use Airbnb rentals to secure your retirement. If you are considering vacation rental income, here are seven tips for making money with your Airbnb investment.
What Is Airbnb?
Airbnb is a marketplace where people rent out properties or spare rooms. Airbnb itself takes about 3% of the booking commission from the host and a small percentage from guests. These properties can be as simple as a room or as large as an entire house.
The goal is to offer unused space with amenities to potential renters to build up extra revenue. Property owners put in place rules and display what their rental offers and guests book it like a hotel. If this is something you’re considering as a long-term investment, here are some tips to help you make it work.
1. Scope Out The Property
Quite simply, where you own your Airbnb property matters. Tourists are excellent steady income and potential guests are always on the hunt for a bargain place to stay. While hotels have appeal, many visitors are looking for that sweet spot between a hotel and renting out a home away from home. This, of course, depends on where people are going, who they are bringing, and what they are planning to do. You want a place with “good bones” that will take very little to maintain as well.
If you want to cash in on your rental property, the first step is to map out the best locations. You’ll probably do better with beach properties and homes near exciting cites than something that is located two-three hours away from any points of interest.
2. Keep Up With The Property
One of the key selling points of a property is how it looks! People won’t want to rent a dump, and reviews are crucial. The goal is to make your rental property into a place where people want to stay. Don’t just make it livable; create a space that visitors will want to return, and that means keeping up with the repairs, maintenance, and general look of your rental.
3. Pick A Place Near Everything
Again, location is one of the biggest factors in selecting a property. Not only is it important to select an option near a place of interest, but you also need to make sure it’s near the action as well! It doesn’t have to be beach-front property but scope out your selection.
People on vacation want to stay near everything. With that in mind, people away from home, on business or for pleasure, should know what’s going on around them and have easy access to everything. For example; having a rental space near major convention halls for business travelers may be ideal for passive income. Choose your rental property wisely!
4. A Little Hospitality
If you own a rental property, you want to stand out among all the other options available. The little extra push that will have your property out front is the personal touch. A little hospitality goes a long way in making guests feel welcome. Keep things stocked! All the amenities, like soap, paper towels, clean linens, are all something extra to set your rentals apart. Provide information on the area – good restaurants, quaint shops, or other points of interest. The goal is to make your guests feel comfortable. After all, you want them to come back. Return business is what will fund your retirement.
5. Generate Those Positive Reviews
In the information age, people thrive on reviews. Social media can make or break your property, and you can bet your rental will make it onto one of the major platforms. Make your rental Instagramable enough for photos with charming decor and furniture choices. In fact, one of the best ways to sell your potential visitors is by having professional photographs taken.
Combined with a good location, excellent upkeep, and that extra hospitality, you want your visitors to leave rave reviews everywhere. Additionally, you want to make sure your lines of communication are open, and your directions and expectations are clear. Miscommunication is an easy way to land a bad review.
6. Keep Things Clean!
This one is a simple, but imperative tip; keep your rental property clean. Regularly tidy up, deep clean, and keep the yard in order. Tying in with many of the previous points, no one wants to rent a dirty house. Plus, if you to keep up your property, it’s bound to generate bad reviews. Rental properties aren’t worth it if they aren’t generating a profit.
If you are worried about guests keeping your property clean, be sure to establish the rules upfront, such as whether you permit pets, smoking, or other activities within the rental. To protect yourself, adding additional home insurance is a must. Take the steps to have added legal protection against fraud, theft, and any unwanted house guests.
7. Establish Guidelines Pricing
To get steady guests you must manage your pricing carefully. Be transparent with your numbers.
Alter your prices appropriately during the ebb and flow of the seasons. Keep track of when rental demands spikes and alter your rates for peak seasons to generate that positive cash flow.
Be sure to monitor any money coming in and compare it with any expenses for the rental property. Investors need to walk the line between the other rental options so as not to price themselves out of visitors.
Building Your SDIRA
With the right steps, you can generate long-term income with a successful Airbnb property. Perform your due diligence, locate the best location, and get your property ready for visitors. As with all investments, be sure to discuss your financial aspirations by contacting a trusted Horizon Trust advisor today. Start looking for your successful retirement investment.
