Leveraging the Benefits of an AirBnb Rental as a RE Investment

In just under 15 years, AirBnb has evolved from a mere concept to a multi-million-dollar corporation with over 3 million properties spread around the world. During its relatively short existence, AirBnb has revolutionized the way homeowners and landlords view the additional space in their homes or vacant properties—allowing them to quickly and easily market these spaces as a source of passive income via their online platform.

If you have been contemplating listing your empty room, apartment or house there’s a good chance that you’ve considered AriBnb as a potential option. The following is a closer look at some of the notable benefits you can leverage as an AirBnb host.

Passive Income Stream

Perhaps the most apparent advantages of utilizing the AirBnb platform as a property owner is that it offers the means of conveniently generating an additional revenue stream. Vacancy rates and rental prices typically fluctuate based on current market conditions. Accordingly, by charging on a nightly basis, property owners may experience ups and downs when it comes to their monthly and yearly net income. Depending on where your property is located, you can potentially earn a substantially higher amount through a vacation rental unit as opposed to a normal rental property by charging higher fees on a consistent basis.

Large professional real estate corporations have started snapping up available properties in order to tap into the short-term rental sector—a clear sign for individual real estate investors that there is plenty of opportunity for growth in this niche of the market. If there is high demand from travelers to a sought-after destination, you can likely leverage the AirBnb model to accrue wealth.

However, you still have to do your homework when launching your AirBnb rental project. Your overall success will be largely dependent on your capabilities in managing, optimizing and promoting your listing. Additional considerations to take into account during your planning stage include:

• Geographical location
• Amenities
• Availability of public transportation
• Aesthetics and curb appeal
• Square footage and number of available rooms

Flexibility & Independence

The short-term rental investment approach isn’t the best fit for every investor. Certain individuals prefer the stability and relatively hands-off role offered by long-term tenants. But for property owners craving a flexible investment option that they have total control over in route to achieving financial freedom, then a short-term AirBnb may be the ideal solution. The choice is yours when choosing what dates your property is available to rent. If you want to utilize the space for your own purposes, you can simply block off the dates—a perk that is not possible when dealing with longer-term tenants on annual leases.

Tax Breaks

Being an active AirBnb property owner allows you to take advantage of certain tax benefits and deductions, which could add up over time. As an AirBnb host, you can write off expenses associated with insurance fees, repair and maintenance costs, mortgage interest, property taxes and other professional and legal expenses.

Diversified Investment Portfolio

Incorporating AirBnb into your investment portfolio adds an additional layer of diversification and further protects your wealth from periodic market fluctuations. It’s always smart to have multiple investment assets, to include stocks, savings and different forms of real estate to help mitigate risk and provide financial stability. Short-term rentals can be a great addition to investors’ overall portfolio and help balance out your wealth allocation.

Get Started Today

Ready to list a property on AirBnb? Express Capital Financing offers efficient and flexible funding options to help you close on the perfect investment asset. At Express Capital Financing our advisors engage in a solutions-focused, consultative approach. We understand each client’s specific needs and goals and present the best approach to satisfy the client’s requirements. Express Capital Financing possess a unique market knowledge that is critical in today’s complex and volatile environment. Contact us today to get started!