While many people would like to make money with real estate, the process of finding, vetting and managing tenants throws many would-be landlords off. Airbnb allows users to rent their residences at a premium through a platform that makes the process extremely easy. But besides ease of use, why is renting through Airbnb so popular? And how do you make money renting properties via Airbnb?
The Attractions of Renting Apartments via Airbnb
The people renting via Airbnb are looking for a place to stay, so you don’t have to look for tenants. In the ideal situation, they pay relatively high rents, and you have vacant periods where maintenance is easy to do. When you rely on a constant stream of short term renters, you have the ability to quickly sell the empty property or move in yourself if you need to.
Renting out a vacation condo that you own allows you to make money off the unit, money that can offset the mortgage and insurance. Renting out your home on Airbnb while you travel can fund your travels while reducing the odds the property is vandalized, because it isn’t vacant.
How to Make Money Renting Apartments on Airbnb
Study the rental market in your area. Research the rates you could receive for a given property and don’t buy rental real estate if you can’t earn enough from Airbnb to pay its mortgage payments.
Know when you could rent the unit out for the most money and the target demographics. Are you going to make the most money renting an apartment to visiting business people staying for a month, college students who need a place to stay between semesters, or new residents to the area who want to rent for a while before closing on a house? Will you be renting the apartment to tourists every weekend? Your description on Airbnb should reflect the people most likely to rent it or who will pay the most for the rental. This research will also tell you if there is demand for a property you already own or are considering buying.
Calculating Rental Prices
Calculate how much you would have to rent the property out for per weekend or any other set period to cover costs like the mortgage, insurance, utilities and cleaning. And be conservative with your estimates of how often you’ll be able to rent it out. You need to know how much you must charge in order to break even. The only exception to this rule is renting out a room while you are living in the unit or renting out a vacation unit you occasionally visit; in both of these cases, you have to pay those monthly expenses anyway.
Get the Legal Authority to Rent the Unit Out
Either own the property outright or have permission from the landlord to rent the apartment on Airbnb. If you want to start from scratch in Dubai, you could find cheap apartments for sale in Dubai from propertytrader.ae, as many people are desperate to sell following the economic downturn in the area.
Renting out a property you already own through Airbnb has the potential of letting you earn extra money for relatively little work. Know the rules set by Airbnb to avoid problems.
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