Researching Areas for a Good Airbnb

In the midst of all the hype of Airbnb, there is the north star of the search, the north star of all searches for properties which is location. When thinking about locations for Airbnb there is other parameters than a normal rental you should be looking for to get that right one. In these there will be some similarities in the model of buying a rental and keep them in mind so that there is a good base for the search.

The very basic info as you search for the area there should be some fundamentals to follow. As these fundamentals should be infrastructure of the town or city, not one source of employment, and good access to all public transit along with ease of access to the property via automobile. The ones that this blog is about to cover are above the fundamentals, and the information on this is where a property will thrive with the fundamentals included.

To kick off the list, keep in mind these are built around the fundamentals that I spoke about above and it will give you a solid base to work off of while searching for that perfect area for you as the investor.

1. 1. City governance: what does the city have to say about the short-term rentals (STRs), and have they had pressure from the citizens about making sure that they are limited on the amount of STRs permits for that area. If this is the case be sure to review all the guidelines that the city or county has put out prior to starting the search in the community. For example, there are cities in California that have outlawed the STR permits for any new property purchases.
2. 2. Large Attractions: this is a broad focus for looking for a good spot to buy an Airbnb. There needs to be a reason that people want to go to that area, this maybe a National Park, a big lake, a beach, a camping area, a tourist location, and any other places are giving that large attraction feel to the area. This is a lot of the draw for a lot of areas and people as well, and it brings in all the people to that location is something that should be sought after due to the high traffic flows and the desire to get to that location.
3. 3. Vacation Location: This is huge, there are some areas that have a lot of hotels for that quick get away, and that is a good place to buy a property for an Airbnb. Two things that I would keep in mind, one is that these areas should not be a common place where people live and work (i.e., Venice Beach or Santa Monica), this is where the ban on Airbnb’s come in. The second is to take a look at the location and see if there is a lack of hotels or motels, if this is the case, your Airbnb will flourish since it has less competition to compete within that location. This is good because you can charge more, and you’ll always be booked.
4. 4. Infusion of Money: There is a great indicator to go into an area, and this is tailored towards the first section of this blog. We are looking for the city or town putting some money into the infrastructure. This is a key indicator that there will be a better downtown, streets, shops and restaurants etc. This will bring more people to that area since there is stuff to do in between going to site see and it gives them a place to go eat after a long day traveling around the city.

These are what you as an Airbnb investor need to look at when you are searching around for a town or city to start to invest in. If there are only one or two of these, you should cut the location out of your search for where you will be buying your next Airbnb since it will limit you and your upside on your Airbnb significantly. Keep an eye out for the indicators and do not wavier on your search.