More and more travelers are opting to rent homes through Airbnb instead of staying in a hotel. Every night, 2 million people stay in Airbnb rentals around the world. Listing a property on a vacation rental website can earn you a sizable profit if you do it correctly. If you’re ready to invest in a rental property, check out this guide before you call your realtor and start house hunting.

What to Consider When Investing in an Airbnb Property

1. Consider Your Finances

If you plan to finance the house, talk to a mortgage lender about your options. Mortgages for rental properties are generally more expensive than they are for owner-occupied homes. Discuss the options with your lender and make sure you’ll earn enough for the monthly payments.

Investigate other costs associated with having a mortgage on a second home. For instance, consider the additional property taxes that you pay and how the home will affect your annual tax returns. Evaluating these factors will ensure you make a financially smart decision.

2. Research the Competition

Once you have your finances in order, search for a potential Airbnb rental with your market in mind. Research the listed options in your area to determine the average rate for a comparable unit. 

Also, identify the types of rentals available in your area and look for a gap in the market. For example, if there are only single-family homes listed, consider investing in a condo or apartment. If there aren’t many options that offer kitchens, plan your rental to fulfill that role.

3. Consider the Seasons

Use your knowledge of your city to identify high and low seasons for rentals. For example, Houston’s busy seasons are the spring and fall. Knowing when to expect guests and when you will have vacancies will help you manage your finances.

Plan around music festivals, business conventions, and other events that will bring people to your city. Looking at these trends can also help you decide how to decorate your rental unit. People traveling for business will want a more minimalist design, while festival-goers might enjoy greenery and quirky artwork.

4. Work With a Realtor

Finally, work with a realtor to assess the current housing market. Ideally, you can purchase your investment property in a buyer’s market, not a seller’s one. When you do, you can reduce your mortgage payment, which can help cover other expenses of being an Airbnb owner, like cleaning and laundry services.

 

If you have any questions about finding an Airbnb investment property in the Houston, TX, area, contact Guru Management, LLC. This company works to diversify your real estate portfolio and manage your investment. The talented staff can advise you about the current market and help you make the right real estate decision. To schedule a meeting, call (713) 447-2552. Learn more about available services on the website.