5 things to consider before buying your first Airbnb property

The Airbnb community has seen a steady surge in popularity since its inception. With many people opting to choose this option over traditional hotels, Airbnbs offer a lucrative opportunity for both property investors and the average homeowner. We look at ways you can optimise your property potential and grow your portfolio.  

 

 

Airbnb currently has accommodation in over 65 000 cities worldwide. Anything from a single room to an entire house can be considered for an Airbnb stay and it's up to the owner of the property to decide 

what type of market they want to enter. If you are thinking of going all out and purchasing a house or apartment to let out, there are some rules of thumb you should follow. 

 

Travellers and holidaymakers will choose big cities or resort towns as their usual choices. It's advisable to do some research on the attractions and the amenities available in the area your Airbnb will be located in. Access to entertainment and leisure facilities will be a major drawcard for potential guests. 

 

 

When taking on an Airbnb as a personal project, you are basically doing the work of a property manager. You will need to monitor: 

However, you will have more flexibility as you can also decide when you want to use the property yourself, or increase the prices during a season when demand is high. 

 

 

It's always a good idea to protect your property and belongings when you're inviting guests to live in your space. Consult with an insurance broker to devise a plan that ensures you're covered in case of a claim. You may need landlord insurance since you're renting out to paying guests without using the property for personal use at all, or a combined policy that works for you. 

 

 

If you're fortunate enough to be able to purchase your property in cash, it means you most likely have the capital to invest in the nitty-gritty details that secure your return on investment. However, most people will have to take out a second mortgage or private loan to fund this dream. Add on costs for home security, furnishing and general upkeep and you could have quite a hefty sum on your hands.

 

It's important to have a clear outlook on your projected income versus your current expenditure to make sure this will be profitable for you in the long run and a wise financial decision. Consider how you will manage in the off seasons and if you can afford the upkeep of more than one property. 

 

 

The little things go a long way. Taking the time to think of adding convenience will ensure you receive a high rating overall and boost your reputation as a host and a quality Airbnb. Think about the amenities most major hotels provide and try to recreate as luxury an experience as possible. A fully fitted kitchen with a complimentary tea and coffee station, or a safe for your guest's valuables can make all the difference in a guest choosing to book a return stay. 

 

The pictures you post online also need to be of a good standard and indicate a clean, hospitable environment. Communication between you and the guests should always be conducted in a professional and timeous manner. This will make your guests feel prioritised and comfortable with you as a host. 

 

RealGlen Properties has many stunning properties on offer in exciting locations for you to view. Choose between spacious suburban homes or apartments in the hottest areas to make the most of your Airbnb journey. Contact one of our trusted property practitioners today. 

Author REALGLEN Properties