How to Make Money with AirBNB
5 Essential Tips for Property Owners
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Did you know that vacation rental AirBNBs are the fastest growing home buyer segment in the real estate market today? Vacation rentals are forecast to grow at over 35% in the next 5 years. Savvy property owners know to fully embrace this strong growth market segment and make money with AirBNB. You can make money by leveraging the fact that short-term rental rates have never been higher, interest rates have rarely been lower, and premium short-term rental managers can take the hassle out of managing your AirBNB rental property. That and the selection of vacation rental properties available for AirBNB short-term rental has never been wider. |
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Let's face it- the "sharing" economy is going strong. These compelling macro-trends provide substantial opportunity for savvy property owners to outflank their competition and make more rental income.
We have compiled 5 insightful tips that accomplished property owners can use to maximize their AirBNB rental success. Let's count down the tips from #5 to #1:
Tip #5 – Determine Your Expected Rental Income for the Property
Our first tip to help you become a successful AirBNB rental property owner is to be sure and determine the estimated rental income available. You probably already know that short-term vacation rental income often substantially exceeds long-term annual rental income. Do you know how much? 200% or 300% more income is not uncommon.
Just ask Thomas and Diane W. of Marco Island, Florida. They own a nice 3 bedroom, 3 bath ranch-style home right on newly renovated Mackle Park on the Island of San Marco, Florida. It was so easy for them to get long-term rentals. Given the location on the park, they just posted a sign in the front yard and the phone rang and rang. They signed up an annual renter for $1,350 per month. This tenant loved the place and stayed put for 8 years without a rent increase.
Until… rent payments started coming late and under paid. After a few months of tolerating late payments and shortfalls, they decided to make a change.
Tom & Diane contacted Plus+ Vacation Rental. Short-term vacation rental income for their family-friendly home on the park comes in at $80,137 per year. Wow! That’s an annual increase of $63,937.
Any regrets? Yes. Tom & Diane are kicking themselves for not researching short-term rental market rates and contacting Plus+ Vacation Rental sooner. This is some serious coin left on the table! They’re thrilled to have their property managed stress-free, go golfing, and enjoy such a substantial life style enhancing revenue increase.
You can read more compelling Case Studies here.
We have compiled 5 insightful tips that accomplished property owners can use to maximize their AirBNB rental success. Let's count down the tips from #5 to #1:
Tip #5 – Determine Your Expected Rental Income for the Property
Our first tip to help you become a successful AirBNB rental property owner is to be sure and determine the estimated rental income available. You probably already know that short-term vacation rental income often substantially exceeds long-term annual rental income. Do you know how much? 200% or 300% more income is not uncommon.
Just ask Thomas and Diane W. of Marco Island, Florida. They own a nice 3 bedroom, 3 bath ranch-style home right on newly renovated Mackle Park on the Island of San Marco, Florida. It was so easy for them to get long-term rentals. Given the location on the park, they just posted a sign in the front yard and the phone rang and rang. They signed up an annual renter for $1,350 per month. This tenant loved the place and stayed put for 8 years without a rent increase.
Until… rent payments started coming late and under paid. After a few months of tolerating late payments and shortfalls, they decided to make a change.
Tom & Diane contacted Plus+ Vacation Rental. Short-term vacation rental income for their family-friendly home on the park comes in at $80,137 per year. Wow! That’s an annual increase of $63,937.
Any regrets? Yes. Tom & Diane are kicking themselves for not researching short-term rental market rates and contacting Plus+ Vacation Rental sooner. This is some serious coin left on the table! They’re thrilled to have their property managed stress-free, go golfing, and enjoy such a substantial life style enhancing revenue increase.
You can read more compelling Case Studies here.
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Tip #4 - Debunk the Damage Myth
The statistics are clear. Short-term renters are less likely to cause substantial damage to a property than long-term renters. There are several logical reasons for this. First, when a traveling guest books a vacation home on AirBNB, VRBO, or others, the guest is putting-up a damage deposit (typically around $500 or more). As such, the traveler has "skin in the game" and knows there is immediate recourse should any substantial damage occur. The booking sites also offer damage insurance which is paid for by the traveler as a surplus charge. In addition, the leading booking sites also offer a $1,000,000 liability insurance policy that automatically covers listed properties. |
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Second, short-term AirBNB renters are paying more for the same property given the length of stay. As such, their incomes are typically higher and their primary goals are to relax, enjoy their family vacation and take care of the place. The same cannot always be said for annual renters. Sure, there are always a few bad apples in any bunch, yet the statistics are more favorable for short-term rentals than most people realize.
In fact, industry-wide statistics indicate that less than 0.0005% of short-term rental bookings incur a substantial damage issue.
So be sure and communicate with your prospective clients that substantial short-term rental damage issues are far more myth than otherwise believed.
In fact, industry-wide statistics indicate that less than 0.0005% of short-term rental bookings incur a substantial damage issue.
So be sure and communicate with your prospective clients that substantial short-term rental damage issues are far more myth than otherwise believed.
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Tip #3 - Use the AirBNB Income Calculator The team at Plus+ Vacation Rental and others offer free tools you can use to determine the estimated short-term AirBNB rental income that is likely for a particular property. Some income calculators use historical data based on many years of past short-term rental data from leading booking sites. Others can leverage the listing site calendars of particular properties in certain neighborhoods to get a reasonably accurate idea of price trends throughout the year. A number of factors go into these calculations including seasonality, vacancy rates, school schedules, local events, etc. You can use these free tools to build your credibility and position yourself as an expert with this valuable knowledge. So use the Income Calculator to let your prospects know how much short-term rental income they can reasonably expect from an investment property they may be considering for purchase. Tip #2 - Determine Your Cap Rate In the world of vacation rental properties, maximizing your cap rate is the way to truly boost your profitability. First things first: How do you define your cap rate? The process is fairly straightforward and you can usually do this yourself with a little bit of know-how. |
Find out what annual revenue to expect from your vacation rental property.
Enter your property's address and basic accommodation information above. We'll let you know how much short-term rental revenue you can expect each year based on like-property comparables, seasonality, vacancy rates, rental listing site calendars and pricing analysis. |
The cap rate, or capitalization rate, is the comparison of the net operating income (revenue minus expenses) to property asset value. For example: if you are earning $100,000 per year for your home, and your home is valued at a cool million, the rate would be 10%.
In the world of vacation home rentals, earning a profit is the name of the game for investors. You will need to keep your cap rate in mind and do what you can to always drive this rate higher. This can directly lead to getting the best ROI.
Generally, your cap rate can be anything between 4% and 10%. A goal should always be to increase your cap rate as much as possible. With this in mind, you can earn higher incomes across the board and ensure your vacation property investment is maximizing its value.
Be sure you are crunching the numbers and are up to speed with the cap rate of your vacation rental property. Have a clear understanding of the annual return on your investment. Cap rates are important, as they not only provide an accurate understanding of operating costs, but also provide a clear opportunity for investors to check that a property investment is working and bringing in adequate ROI.
Tip #1 - Partner with a Premium Rental Manager
At Plus+ Vacation Rental, we regularly get requests from successful AirBNB property owners who are looking to maximize their rental income and minimize their hassle. There is no term contract and it's free to join.
In the world of vacation home rentals, earning a profit is the name of the game for investors. You will need to keep your cap rate in mind and do what you can to always drive this rate higher. This can directly lead to getting the best ROI.
Generally, your cap rate can be anything between 4% and 10%. A goal should always be to increase your cap rate as much as possible. With this in mind, you can earn higher incomes across the board and ensure your vacation property investment is maximizing its value.
Be sure you are crunching the numbers and are up to speed with the cap rate of your vacation rental property. Have a clear understanding of the annual return on your investment. Cap rates are important, as they not only provide an accurate understanding of operating costs, but also provide a clear opportunity for investors to check that a property investment is working and bringing in adequate ROI.
Tip #1 - Partner with a Premium Rental Manager
At Plus+ Vacation Rental, we regularly get requests from successful AirBNB property owners who are looking to maximize their rental income and minimize their hassle. There is no term contract and it's free to join.
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At Plus+ Vacation Rental, our full-service property management program is focused on more bookings, more income, and quality guests. We make renting out your vacation rental home simple. We do the work and you get more booking income, driving your ROI and boosting your cap rate.
Are you ready to ensure your vacation rental listing is profitable and brings in maximum returns? Reach out today and let Plus+ Vacation Rental manage your inquiries and increase your bookings. We offer a premium property management service at a price that is lower than traditional property managers. |
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We can also manage all review requests for you and increase your stellar reviews, ensuring that you get the 5-star feedback that will drive new bookings to your door. Find out more about how Plus+ Vacation Rental works here.
Are you looking to bring in additional quality bookings for your AirBNB and boost ROI for your AirBNB rental? We do so much more to market, promote and manage your AirBNB. Get more income with help from Plus+ Vacation Rental.
Are you looking to bring in additional quality bookings for your AirBNB and boost ROI for your AirBNB rental? We do so much more to market, promote and manage your AirBNB. Get more income with help from Plus+ Vacation Rental.
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