Airbnb has changed how people travel, and investors are paying attention. Short-term rentals are becoming more popular and a great way to earn a relatively passive income. If you are considering joining the 4 million hosts in the United States and investing in a property to use as an Airbnb, here are some tips to keep in mind:
With more people flocking to Southwest Florida for vacation and travel, purchasing a home as an Airbnb is a naturally excellent investment, particularly during the winter months. Right now, the average Airbnb in Southwest Florida earns between $500-$2500 USD in a singular weekend in December.
Not only that, but in this summer saw a rise in inventory for many areas in the Southwest Florida, without a tremendous amount of competition, which means that it is the perfect time to search for the best home that fits your needs.
The location should be your first consideration when purchasing a home to use as an Airbnb. You will want to choose an area that is well-traveled. Many hosts look for areas with minimal competition, but this can be a slippery slope. There may be a reason why competition is minimal, so speak with your Realtor® to really get a feel for the area. Consider a location close to amenities for those who may not have a vehicle handy and plenty of local attractions and activities. Fortunately, Southwest Florida is an excellent area to start the search, but as you narrow down homes, consider the travelers’ point of view and accessibility.
You may want to factor in the home size as this may impact the rates that you can charge. For example, a larger space can house many more people than a condo. However, this doesn’t necessarily mean that bigger is better; you must also consider maintenance and upkeep.
Open-concept floor plans are a great choice because they invite spaces to entertain themselves. Most people who choose Airbnbs are looking for an alternative to hotel rooms, so having bright, open layouts are much more desirable than confined spaces.
When looking for an Airbnb in Southwest Florida, you may want to consider purchasing a home with potential for outdoor entertaining, as many travelers will be hoping to take advantage of the benevolent Florida weather. If you can purchase a property with a view of the ocean or a pool, that would be a tremendous bonus.
Choosing a location with charm and character will help your Airbnb stand out from the competition. People will first view your Airbnb online, so purchasing a property with future marketing in mind will help you in the long run. Consider any unique features the home may have when searching for properties.
If your options are limited, don’t worry! You can always add extra charm once you’ve purchased the home with paint and decor pieces or even minor renovations if the budget allows.
If you’re looking at a property with plenty of charm, sometimes that could mean choosing an older home. However, while there may be plenty of benefits to marketing an older home as an Airbnb, consider that you will likely have more repairs.
Guests will rate their hosts based on cleanliness, so you will want to ensure you clean your home thoroughly between guests. Whether you are planning to hire a cleaning service or roll up your sleeves to clean between guests, choosing a home that is easy to clean will likely save you time and money on the cleaning bill.
While not everyone travels by car, having a place to park for those who travel by vehicle is an outstanding marketable feature. Whether the home has a driveway or street parking, it is worth looking into where your guests can park if they need to. If you are considering a condo, look into their parking space options.
Familiarize yourself with the rules and regulations of the Airbnb platform and your direct competition. Then, speak with your Local Realtor® if you have any market-related questions that may impact your decision to buy a particular property, and let them know when you are searching that you intend to use the home as an Airbnb.
Once you purchase your home, marketing is crucial. Take cues from your direct competition and emphasize the traveler’s experience. Invest in professional photos of your property and showcase all it offers. Take advantage of the seasonal uptick in tourists in Southwest Florida and craft captivating descriptions.
Before you start searching and making the purchase, you will want to set a budget. When done correctly, Airbnbs can be a fantastic investment, but there are many hidden costs that you will want to account for, which may determine the type of home that you invest in.
Repairs, cleaning, and utilities
Airbnb takes 3% of sales
Furnishing your home after purchase (or making renovations)
You will want to work with a Realtor® that is an expert in the Southwest Florida Real Estate market to ensure that your next investment property meets your needs. They will know all the best locations to purchase, expertly negotiate a fair deal for your home, and help you through every step.
Whether you are looking for your primary residence, vacation home or next excellent investment, Faris Team will ensure that it will be a stress-free experience. Our Professional, Loving, Local Realtors® know the Southwest Florida market better than anyone and are constantly searching for ways to go full out® for our clients.
If you’re looking for your next excellent investment, give us a call to start your Best Real Estate Experience.
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