Newsletter – Airbnb Rental Property Investment Strategy 101

An Airbnb rental property investment strategy is a strategy through which real estate investors choose to buy a property and rent it out on Airbnb. Investing in Airbnb has the potential to generate high profits and to generate a higher return on investment and rental yield in comparison to the traditional rental strategy.

This summer, GPS helped one of our clients purchase a small cottage on the beach as an Airbnb rental property investment. The Airbnb rent was more than three times the monthly mortgage payment, indicating that is a rare investment with excellent cash flow. Lots of investors were questioning how to determine if a real estate listing is good for Airbnb, read through for a 101 guide to the Airbnb rental property investment strategy.

Location, location, location!

Return on investment is what investors pursue through your prospective investment property at all times. First of all, spot a location of cities and areas that is good for Airbnb. As usual, those spots will be at downtown or recreation areas that are far away from the central area, near a tourist attraction, or vacation places. Take Seattle as an example, apartments next to tourist places like Pike Place Market and the Space Needle are usually fully-booked. Besides, some popular recreation areas or beach islands are hot spots as well.

If the city has a relatively small supply of hotel rooms, for example, that tends to drive up Airbnb prices.

The easiest way to find out which areas are the most concentrated and frequently booked for vacation rentals is to check on Airbnb.

What you need to know before you buy the rental property?

Regarding buying a rental property investment, certain speciality knowledge of vacation rental houses is required, such as house style, septic, tide, water quality, bank level, etc. Those factors may be easy to ignore, however, some of them might bring you a ton of trouble if you do not pay attention to them. Besides, home inspections are a necessary part of the homebuying process. It’s important to have the property you are purchasing professionally inspected to ensure you are aware of any damage or signs of structural wear.

What makes your spot unique?

There are thousands of vacation homes listed on Airbnb, what makes people choose your spot? The uniqueness of a vacation home is playing an important role. The most popular properties in North America usually come with a pool or marina, an ocean view, an oceanfront, along a lake, or a boathouse, a treehouse, or even a camping tent with local architectural features and styles. Find out what features and style your rental property offers, and make it unique!

If you have any questions about buying, selling or renting a home in Seattle, please reach us @ (425) 243-5082, hi@gpsrenting.com,

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Wish everyone to stay healthy and the Pandemic will be over soon!