How to legalize your Airbnb Property
- February 26, 2020
Nowadays no one wants to own a car, people don’t own their phone, itis an inevitable pattern. Society…Read More
Airbnb is one of the most trending topics in the last 2 years. Legal or not this is an industry that has increased double digits year over year depending on where you are talking about. Why is it important to invest and get in early, establish your position and began reaping the benefits?
Here are my top five reasons:
Short Term Rentals hosts tend to have a consistent cash flow over their properties. This is easy to explain why. You see, there are many reasons and circumstances to choose an Airbnb over the alternative. Short-term Rental industry caters to many different demographics. It can be a traveling nurse or someone who needs surgery and a place to recuperate with family, or the usual, a couple out on their weekend getaway. This largely benefits the local host who can cater to all demographics with a full-sized and fully equipped kitchen.
There is a certain beauty of having control of your investment. That’s why we purchase real-estate over stocks right? The added level of control in Short-term rental properties starts with you! You as the host can allow your creativity to flourish to create the best and most memorable experience for your guests. Then with some solid experience and understanding guests after guests, they will leave raving reviews for you about cleanliness, design, thoughtfulness, or communication. This will allow you to stand above others and increase occupancy along with rates.
Whenever an investment or asset is evaluated the income potential is an angle that can always act for you or against you. In this case, as a Short Term Rental host, it can be your best friend. Airbnb is widely known to generate anywhere from 2X to 3X your regular market value rent. Therefore, since we have increased the value of the property by increit only makes sense to ask a premium on the proven cash flow potential. Something awesome about this is that it can apply to single-family homes, multifamily apartment buildings, or even a treehouse!
VRBO / Homeaway and Short Term Rental properties are built and intended to be a hands-off operation. This is the truth for as long as the host of the property makes sure processes/systems are watertight and housekeeping is solid. As long as your guest check-in and check out processes, waste collection, and operations are flowing smoothly you can back away. At first, it may take a few months and eventually it is plug and play. The amazing part about it is that you can grow and scale as fast as you can acquire the next property you wish to plug your system into.
The biggest difference amongst long term tenants and short term tenants is the amount of time they will spend inside the property. A majority of short-term renters usually fly in to experience the city and attend events away from the property. This greatly helps the gradual wear and tear of the property. In addition to this our usual short term property is being cleaned a minimum of 2X per week this means the home remains in immaculate shape even when it is vacant.
The Short term rental industry review system has always tipped in favor of the best performing host. As it should. This has allowed property hosts who are serious and dedicated to stand above the rest. Ultimately the success of your property performance is up to you. To me, the factor of most importance here is: “Know your property, use it, sleep in it, and LISTEN to your guests via reviews and private messages”.
A great number of our clients have invested in condos with towering oceanfront and city of views simply for the reason that the mortgage will be paid off and they can still use the property whenever they are in town. Compared to long term
rental property this is always a possibility that helps many foreign buyers and locals as a benefit to owning a condo in a metro area near the cruise ports, airports, and transient hotspots.
Cutting it short; income, freedom, and flexibility have allowed Short Term Rentals to have exponential growth as long as the STR Model is correctly applied. The magic about it is that the positive outweigh the negatives when location, experience, and design all blend in harmony and follow our STR Model.
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