Let's talk about an investment strategy called airbnb. I myself do not currently invest in airbnb, but…
Let's talk about an investment strategy called airbnb.
I'm not currently investing in airbnb, but that's the plan for another year.
Whenever I travel to the US for Business Trip, I take an Airbnb apartment in a different part of town.
The goal is research - to understand the real estate development there, is it a good area for investment, for flips and is it really a successful area for Airbnb.
So what exactly is Airbnb?
This is a site where people advertise their homes for short term rentals - mainly for tourism purposes, but also for business travel.
You can rent a room in the house where the owner lives, and you can also rent the whole house (everything goes, as long as the site / company approves your house).
This is a relatively flexible and cheap alternative to hotels, for tourists.
It is becoming so popular around the world, until there are cities where regulations on airbnb apartments are very stringent (such as: Paris, Barcelona and more).
Features of airbnb apartment:
1 – Location. Since the apartments are aimed at tourists, the location of such an apartment should be in an attractive area for people who come to visit that city. It doesn't have to be in the city center like the hotels, but also not in a suburb that is an hour's drive from the center.
2 - Renovation level. From my experience (in the last 7 years I have spent much in both Europe and the US), these apartments are usually modern and renovated to a high standard, which is
As opposed to buying a rental property in the US for a monthly rent to a tenant, which can be renovated at any level the investor wants.
Airbnb as an investment strategy:
The disadvantages of such an investment, it is a high wear and tear, due to the high turnover of people.
Risk of home demolition by tenants,
Certain seasons where it is harder to rent because of a minority of tourists,
And management fees are very high if you do not manage this house yourself - this can amount to 20-25% monthly management fees.
The advantage is that the return on such an investment is much higher than on a regular rental property.
In tourist months, gross income can reach $ 3000-4000 per month, and even more depends on the city you invest in and location in that city.
As I mentioned, I am not yet investing in airbnb so there are certainly some things I did not specify, but this is definitely an interesting investment strategy.
peace out! ✌️
And just note that the fine in New York (City, don't know about the state) can easily reach $ 25,000 per apartment!
As someone who has been doing this for almost 5 years, I would love to help you if you want
I would like to add another point of view: this is not an investment in real estate. It is an investment in a short-term rental business whose legal status is very problematic and in some countries in the world and in the US it has already been subject to many restrictions in different areas. I am not against renting property in this way, but the calculations for the purchase must take into account what will happen if you can no longer do it: Is there a "regular" audience that will rent the property? And if so, by how much? And how much is the property worth without Airbnb. Successfully
Arturo Mikhailovich
Yo we gotta talk about this !!
As one who does this in both the country and the US, the issue of wear and tear and the risk of destruction is much smaller through Airbnb. You can set whatever height of deposit you want and the platform protects you in almost every direction. Since the tenants know this and are briefed at the entrance to the property, they tend to keep it much longer. By the way, in case of breakdowns, this is not an insurance company .. It is very easy to get the money out of them.
The main concern is really that the operational issue is very high, but for those who have time and have no problem with active investment it is worth it, because the returns are much higher.