Is AirBnB the next new strategy for the real estate investor?
The late Alvin Toffler, American writer and futurist, once said that “the great growling engine of change” was technology. Never has this been more true than for the real estate than now. With the emergence of AirBnB, a tech company worth more than 20 billion dollars, investors and property managers have a new, innovative opportunity.
AirBnB was founded in San Francisco in 2008 by Brian Chesky, Joe Gebbia and Nathan Blecharczyk and in ten years have amassed over 160 million clients, 3 million listings and does business in 190 countries. The app based business allows travelers, for leisure and for work, to forgo hotels for home rentals. Users simply locate listings for certain dates and destinations, and with a deposit and rental fee, they can rest their heads in homes, apartments and cottages around the globe.
For real estate investors, the app creates a new way to create more income, with less headache and work. In hot metropolitan cities, AirBnB hosts earn an annual average of $20,619 per property that they rent to guests. According to smartasset.com, hosts in these major cities who rent 2 bedroom units between 20 to 24 days out of a month, can expect to earn between $1700 to $2800 per month.
This is an interesting proposition for property owners who struggle with inconsistent tenants and consistent wear and tear on their units. The relationship between a long term renter and a weekend guest is different as renters expect more for their money than they may often be willing to return in terms of respect for a property. As well, AirBnB guests are charged a deposit fee on their on file credit card for damages incurred during their stay, which protects the owners and their investment.
Typically, hot seasons for AirBnB hosts are during festival seasons and holidays. However, it’s a great accommodation for professionals who travel for work throughout the year who want the feeling of a home in a community. In a house or apartment, they are able to save money on food as they can cook an avoid eating out every night. There is no check in process as this is typically resolved via the app and conversation with the home owner prior to the trip. It’s a great trade for everyone involved.
If you are in Columbus, Ohio and considering buying an investment property and would like to learn more about properties in hot zones for tourists and travelers, contact Theresa Barron ASAP. With over a quarter of a century in real estate and investing, the Take A Look Real Estate Brokers teams comes equipped with market data, Columbus inventory, knowledge, and experience to make your property buying experience work for your needs. Call us now at 614-778-8503 to get started.