From the past few years, Airbnb rentals have quickly become a popular choice for people who were looking forward to temporary lodging during their vacation period. As the demand is increasing, the term rental during vacation has become an attractive option for real estate investors. Thus, it is very natural to see more and more investors turning to short-term rentals as it is a good offer.
If you were planning to grab the financial benefits of owning an Airbnb investment property, then here are the ways to choose the perfect property for you,
1. Pick Your Airbnb Location in London:
When it is about investment in a property, location is the most important factor when selecting your perfect short-term rental. The most preferred such properties are the one with the tourist attraction places such as beaches, mountains, or a national park. However, apart from all these factors, it is important to take the seasonality into account when considering the best place to buy an Airbnb investment property. Well, it is very usual that you don’t prefer a property that will fetch you some money in the seasonal basis with a short-term rental. Of course, you need something that will earn you despite seasons.
To have a regular income it is better to have your investment in the tourist locations where you have visitors present all year-round. Such areas will be in regular demand for Airbnb properties and will be placed in the Airbnb listings too. Apart from this, you also need to make sure that the location has less supply in the form of hotels or other short-term rentals.
2. Be Clear about Short-term Rentals Regulations:
It is the responsibility of the real estate investors to check the laws and regulations regarding short-term rental before buying a property to rent out on Airbnb in any location. They must also check whether the selected location has the possibility of Airbnb rental or not. If there is, then are you the primary resident of the property or not. It is quite obvious for a property investor to face legal issues if you choose to buy an Airbnb investment property in these cities. So, whenever you are looking for the best Airbnb property, be sure that the location is in an Airbnb friendly area where the laws and regulations are not that likely to affect the return on investment.
3. Type of Property Investment:
When considering the best type of property for rental, Airbnb is the one that can make you the most money. However, all this depends on the location, as well as the type of Airbnb guest whom you were targeting. For instance, if you are interested in owning an Airbnb investment property to rent out to someone single or couple, then an apartment or a condo located in the city center is the best choice. But if on the other hand, you prefer to rent out your property to a family or a big group of friends, then the beach house or vacation home is the best choices.
4. Be Conscious about Your Budget and Expenses:
As it is a well-known fact that every rental property comes with costs and expenses that will affect the return on investment. It is always better to set a budget and to break down your cost carefully while finding the perfect Airbnb investment property. First must see for the property values that make it difficult to cover the higher mortgage payments during the low season. Apart from the mortgage payment, you should note that you have to take care of other monthly expenses such as insurance, property tax, vacancy provision, maintenance fee, furniture and utilities and property management fee. Thus, it is better to calculate and have a rough idea of whether you will be able to save some money after all these expenses or not. If not, then it is better to drop the idea of getting the property through a mortgage.
5. Performance Prediction by Airbnb:
In the case of long-term rental, you can be sure that you will get a fixed return in the form of rental every month. But with this short-term rental, you are supposed to set a nightly rate and adjust it based on seasonality, special events, neighbouring competition and travel trends. As here, there will be no regular income. Thus, sometimes it might seem to be a risky investment, but you can reduce the risk with the help of Airbnb Analytics.
Airbnb and ResiHut
ResiHut being a property management company has got all their properties in London. Yes! You might be thinking that nowadays it is quite easy for anybody to get in touch with the property management companies through social media or by any other online platform. Then why to prefer ResiHut in London. The main thing that you must note is that ResiHut is the only company that looks for everybody’s comfort who were connected to them, i.e., the Airbnb hosts and guests both.
They are very well-known in the field for their best hospitality services. They are very clear about the property that they take over for short term rental. ResiHut keenly check out for the amenities provided with the property. Even if it is a single living room, they checkout for the full-time comfort of their guests at an affordable cost. On the whole being with ResiHut is a profitable investment for both Airbnb host and guests.