3 Things You NEED TO KNOW About Airbnb Investing

What’s up guys, in today’s video, we’re going to be talking about three things that you absolutely need to know in order to invest successfully in short term rentals. So for any of you that are thinking about getting started investing in Airbnb, or otherwise known as short term rental properties, I’m going to give you the three things you absolutely need to make sure that you understand properly in order to do a great job, and ultimately invest in the right properties that are going to yield a great return for you in the long run, and make your journey investing in short term rentals far, far easier.

So to start off with, the most important thing that you need to know is how to pick a good city a good actual location for short term rentals. So this really comes down to a few main things, the most important of which is understanding the regulations in a given area. And even going a step further to understand exactly what is likely to happen with regulations. In the near future, I see a lot of people making the mistake of jumping into an area just because it’s local to them. And I actually don’t agree with the common advice people get of investing in your own backyard, I have lots of students that I work with, that we helped to invest remotely, and I actually invest remotely myself as well. And I find that to be actually a really good way to ensure that you actually do become hands off with the investment because it forces you to become so I don’t think there’s actually a lot of advantage and reality to investing really close local to you, it’s more important to find an area that has good favourable regulations and where the numbers are really solid. That brings me to the second thing that you absolutely need to know and need to be really great at in order to invest successfully in short term rentals. And that’s knowing your numbers. Now, you can do this on a city level just by understanding exactly how much properties are worth working with your realtor, making sure that you’re getting a good deal on the property. But that’s only one part of the equation. When it comes to short term rentals, you also need to fully understand exactly how much that property is going to bring in in revenue on an annual basis, and what your expenses are going to be. I see a lot of people making guesswork out of this and trying to essentially extrapolate how much a property is going to bring in by just looking at the nightly rates in the area on Airbnb. And they don’t really have any concrete strategy for figuring out down to a relative degree of certainty how much that property is actually going to generate revenue, let alone what the expenses are going to be, you have to remember that with a short term rental property, there are going to be fluctuations seasonally, even depending on just the day of the week. So you need to use a site or a tool like air DNA to fully understand how much revenue a property can bring in factoring in all of those different variables. The other thing you really need to understand about short term rentals is that they also come along with different operating expenses that are going to be different from a long term rental property, you have to factor in things like cleaning additional insurance costs, there’s going to be some maintenance, you’ll want to factor in all kinds of different expenses that can when factored in still produce a really good ROI. But you just need to know and go in eyes wide open. So you’re not making the mistake of under calculating your expenses and buying the wrong property. Now the third thing that you absolutely need to know in order to perform well as a short term rental investor is how to actually generate those returns. So step one is just figuring out how much other properties in the area make on Airbnb, and then from that figuring out how much your property could earn. But that’s still going to give you a margin for error. You can know for example, that in the worst case scenario earn X amount, and that in a better case scenario, you’ll earn this much, but in a best case scenario will earn this much. And so really, then it comes down to understanding the different tools and strategies and techniques for generating the maximum return possible. This is what I really like to focus on with anyone that starts working with us when they already have existing properties that are set up and operating our short term rentals because this tends to be the lowest hanging fruit. Now I know that a lot of people aren’t great at this, they’re missing out on a few of the key elements to make that property really perform well. And this breaks down to a couple major areas, one being the photography, making sure that you have outstanding photos. And for your listing to make sure guests are attracted to it in the first place. Having a really good solid listing that’s going to drive click throughs. And it’s going to also drive conversions. And then ultimately just understanding the right pricing strategy so you know when to increase your prices and when to decrease them. We recently had a student at just kind of share with us about their experience being an inner circle. And one of the biggest takeaways that he had. He was one of those students that came in started working with us when he already had existing properties that were doing quite well. One of his biggest takeaways from working with us was that he realised he was underpricing and overpricing his listing at different times throughout the year. And that resulted in him having a huge amount of uncertainty as to how much the property would generate and ultimately underperforming with that listing compared to what he could be doing that when we started working with them and showing the tools and the strategies and techniques that we use. He was instantly able to see a massive boost in the amount of demand for As properties, he’s able to get more bookings, get them booked at better rates and ultimately have a much higher degree of certainty that he was then able to leverage going into all of his future investment properties. He now knew exactly how well he could do as a host as a performance, you know, from performing on Airbnb from that perspective. And so he knew what he could expect with future properties, it was no longer up to guesswork. So that third pillar performance there is super important so that not only can you maximise your investment, but also it’ll give you a lot more certainty in the future investments you go into knowing that you know, everything you need to in order to perform really well. So these are the three things that I think are most important to know going into short term rental investing is number one, how to find a great area number two, how to analyse properties and really know your numbers, and then three, how to deliver on those numbers. We’ve got a whole bunch of other videos on the channel here about all kinds of mistakes to avoid tips for use if you want to check those out. Just check them out, subscribe to the channel, make sure you click the subscribe button and the like button here to stay up to date with the channel and to just show that this video was helpful to you. If you have any questions let me know in the comment section down below. If you have any other tips that you want more insight on or any tips that you just want to share again, let me know in the comment section down below. Thank you so much for watching, and I’ll see you in the next video.