Since it’s inception, Airbnb continues to an excellent investment that offers fantastic ROI for investors worldwide.
If you’re planning on investing in your first Airbnb in Dallas, or Oklahoma City, this article will offer you tips on what to look for in an Airbnb.
How To Get Started With Investing In An Airbnb
Before buying a property for Airbnb, it is important to get to know local laws, as well as the regulations of this platform. Depending on your location, you might need a license before you can start a vacation rental business. If you fail to comply with the laws, you could pay huge fines, which can compromise your profit.
Don’t forget to read the Airbnb regulations to learn the details of how the platform works. For example, all hosts are required to pay a small fee, which is something that you need to add to your expenses of running the business.
Determine your budget
Another thing to do before buying a property for Airbnb is to determine your budget. When setting a budget, it is crucial to consider that the listed price might not be the only expense. You might face hidden charges like closing fees, inspection, insurance, property tax, etc. Additionally, you will also have to consider expenses to optimize the accommodation for renting.
Your budget should correspond to your requirements, but without compromising your personal finance. If necessary, you can consider mortgage payments to avoid paying the entire cost at once.
Analyze available properties
Once you have your budget ready, it is time to hit the housing market. You can use a property finder tool, conduct an online search, or consult real estate agents in your area.
It is important to establish specific criteria for picking rental properties. Apart from finding the best possible location you should also consider the following:
Size – do you want a large or small apartment? Are you looking for one or more bedrooms, and what kind of layout do you prefer?
Property condition – does the accommodation already have new furniture, or will you need to buy everything from scratch? What are other repairs required to turn it into a functioning vacation rental?
Age – while old houses and buildings have a specific charm, they might require additional investment in upgrades and repairs.
Price – the cost of the property should meet your determined budget.
What are the expenses of your short-term rental?
Apart from the cost related to buying a property for Airbnb, what other expenses can you expect? These might be one-time or recurring expenses, including:
Purchasing new furniture to maximize guests’ comfort.
Buying appliances and devices like smart TVs and irons.
Safety investments, such as security cameras or digital entry systems.
Ensuring there are enough toiletries, towels, pantry staples, etc.
Paying for Wi-Fi and other premium services.
Cost of cleaning services.
Utility bills for electricity, heating, etc.
Knowing your expenses as accurately as possible is crucial to optimizing your cash flow.
Use Airbnb profit calculator
If you want to run a profitable Airbnb, it is essential to set the right renting price. For example, rental properties located downtown are usually more expensive than those located in the suburbs.
Renting business newbies might benefit from using an Airbnb profit calculator. These tools take into account expenses, the occupancy rate in the neighborhood, and other variables to help you identify the right price and optimize earnings from your real estate investments.
Listing your accommodation on other platforms can also help to maximize return on investment when buying a property. Airbnb and VRBO are the two most popular platforms out there, and they come with both similarities and differences.
Contact Square House Property Management
At Square House Property Management, we specialize in managing Airbnb rental properties in Dallas and the Oklahoma City area.
Let us save you the time and hassle of managing your Airbnb yourself.
To learn more about our Airbnb property management services, contact us today by clicking here.