Is it still worth buying a property for short-term letting through Airbnb?
In recent years, Airbnb has emerged as the popular choice for travellers everywhere, looking for a unique stay or the comfort that a home can provide as an alternative to a hotel. This has provided an opportunity for investors to to take advantage of this trend and turn to short-term rentals - as the returns they can offer are more robust when compared to a traditional long-term rental.
5 things you need to know before investing in a property for Airbnb:
1. Location, Location, Location
This pandemic has changed the way we travel, but the basics of what makes the difference between a great investment and an okay investment have remained the same. Location was (and still is) the most important factor when selecting your short-term rental.
You must also take into account seasonality when picking the best place to buy an Airbnb investment property. Locations with tourist attractions such as beeches, mountains or a national park are typically desirable. Due to the pandemic, national tourism is rising and this will be the trend for the next couple of years; at such, ideally locations would be unique remote properties within the wilderness of nature in the proximity of a major city.
When picking a city you should ask yourself the following questions:
Is it a city people like to visit or have a reason to visit often?
Does the area have plenty of events, amenities, and culture?
When picking up a location within the city, you must ask yourself the following questions:
Does it offer access to amenities and hotspots?
Is it in the proximity of an airport or train station?
If you expect your guests to travel by car, is there parking easily available?
Is it a safe community?
Are the homes rising in value (in case you are considering selling at some point)?
How easy is it to get around to the points of interest of the city/area?
2. Investment property type
The property you buy should be the property that offers you the best return on your investment.
In average, the most rented property is the one bedroom apartment; however that is not always the case; for example, if you are located near a business park or a large hospital a studio flat would be the type of property that gives you the best return and if you are located on the beach or in the middle of a national; park, large family properties are the best suited.
3. Work out your budget (realistically)
Nobody makes investments to acquire new headaches, stress and sleepless nights, so the best investment is a property you can comfortably afford (the full price or the monthly repayments).
Remember that the actual price of the property is not the only thing you got to cover, but also additional expenses associated with buying a property which can add up quickly to several hundreds / thousands euros.
4. Work with a local agent
Here, at cityhost.ro, we provide counsel to people looking to invest in any of the cities (and vicinities) that we operate in, as we specialise on short-term rentals. Our research combined with the local knowledge makes possible accessing the best deal on the market as well as the right property for you.
Moreover, an agent has the necessary negation skill to get a much better price than the listing.
5. Obstacles galore
Set up your expectations and be as realistic as possible. Getting your Airbnb investment up and running isn’t as simple as you might think.
Every city is different, you have to check the local regulations. You also need to factor in the costs of cleaning services, professional photos, repairs, amenities as well as the time spent marketing and adjusting the price of the property, guest communications and welcoming.
However, do not let that amount of work discourage you from buying a property on Airbnb.
We can help you make it a passive income through our end-to-end service with no request too much or too big, taking care of marketing, dealing with guests, collecting payments, maintenance, property cleaning and restocking between visits among many other things.
For a full list of our services, please visit our website.
Here, at CityHost Romania, we are excited about unlocking the potential of every home by redefining the property management experience through our end-to-end service with no request too much or too big, delivering thoughtful designed interiors, smart algorithmic pricing decisions and a personal service.
CityHost is active across 6 cities in Romania and is growing at a rapid rate. Our hosts love us for the superior income we continue to deliver which is being driven by working with more than 10 global leading brands, building relationships with global companies, utilising our smart pricing strategy and local market expertise.
Whether you have a question about features, locations, investment, or anything else, our team is ready to answer all of your questions. Contact us here.
If you do not already have an account, sign up on Airbnb right here and start exploring.
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