Should You Invest in AirBnBs (or Short-Term Rentals)?
It’s no secret that this is one of my favorite things to talk about. I adore AirBnBs (or short-term rentals—STR for short). They are a win-win in my book. Not only do they allow vacationers to stay somewhere comfortable and live like locals, they also allow property investors and others to turn a profit on their home or property. My Netflix show with Genevieve Gorder, called Stay Here, is actually entirely about AirBnBs—how to design, decorate, and market them to attract visitors and ultimately, increase revenue. This is extremely popular and, I believe, is only the beginning. It is, however, a touchy subject for some. As with anything new, there has been some pushback in certain areas.
Short-term rentals can be an extremely solid investment, but due to the pushback (and other factors), there are a couple caveats. First, you’ll want to make sure that your property will be in an STR-friendly zone. Some neighborhoods and cities are developing regulations and laws that make owning a STR in a specific area difficult or impossible. Do your research on this and choose wisely. Next, research your desired market. Is it saturated with STRs? If so, it could behoove you to look elsewhere. Finally, consider pricing. With your property investment (and any impending renovations), will you be able match or beat your competitors’ prices?
As with any wise investment, it’s important to weigh your options a bit and do your research before jumping all in. I believe this will be the next wave for property investors—and will prove profitable. I’ve seen research and evidence that proves that AirBnBs produce a higher ROI than many other property investments today.