1) Location, Location, Location
2) Time Management
3) Short Term or Long Term Rental
Three things to consider if you're buying an Airbnb and we run the numbers on an Airbnb in Bracebridge.
If you're looking at buying an Airbnb, well, one of the first things to consider is location, location, location. If you're not in a touristy or scenic location don't expect a lot of bookings. Consider average nightly rates, occupancy rate, vacancy rate. Is this a good neighborhood to invest in? And are there any rules from the city surrounding Airbnb?
Number two - time management. So, depending on where the location is it may or may not be close to your home, and are you gonna have the time to spend cleaning, turning over the unit, changing the sheets, stocking up the closets or the fridge, or whatever it might be that you're choosing to do, and cleaning if I didn't mention that. So, there are definitely property managers who can assist in these items. So, consider hiring them and typically property managers for an Airbnb charge about 20% as a fee. Now, one of the things we've found out is try to keep a close eye on your property manager. After all, the reviews that you get on your unit or your house determines your future occupancy levels, right? So always check in on quick answers to questions, et cetera.
And number three, you need to consider, are you looking at a short term or a long term rental? So, let me share with you guys. Here's where we are, over in Bracebridge. Check it out. A lake, that's the cottage. It's three bedroom cottage, perfect for our family. There's a ninja course of some sorts and a trampoline out there. And then they've got a hammock here, and a badminton court. Pretty nice. And then we had a fire going here last night.
So, let's talk about the numbers. This sort of cottage rents out here in Bracebridge for about $700 a night. Now, in checking their occupancy, it is fully occupied for the month of July and August. So $700 times 30 is $21,000 in revenue. Their expenses - that's paying Airbnb, paying cleaners, turnover, property management. If that's what you're looking at, and a mortgage payment would run about $10,000. About $10,000 a month. So there, this place is clocking about $11,000 of revenue every month. Pretty decent cash flow, if you ask me. Now, that may not continue for the rest of the year. So, when you're running these analytics probably take it down a notch into the winter months. But, right now they're at about $11,000 profit cash flow per month.
Airbnb has become a popular way to travel in recent years, and many people are looking into buying an Airbnb property of their own. But before you take the plunge, there are a few things you need to consider.
Airbnb has become a popular way to make extra money by renting out your home (or a room in your home) to travelers. But if you're thinking about buying a property specifically to use as an Airbnb, there are a few things you'll want to keep in mind.
Location is key when it comes to Airbnb. You'll want to make sure you're in a neighborhood that is popular with travelers and that has good public transportation options. Time management is also important – you'll need to be able to dedicate time to managing your Airbnb property, including dealing with guests' needs and cleanings between stays.
Finally, you'll need to decide whether you want to rent your Airbnb property on a short-term or long-term basis. Short-term rentals are typically for stays of 30 days or less, while long-term rentals are for stays of 31 days or more. weigh the pros and cons of each option before making a decision.
If you keep these three things in mind, you'll be well on your way to buying a successful Airbnb property.