Rental investment is a smart way to earn an additional income. It is a good way to diversify your portfolio and build your wealth. Today, people are getting more into this business as online marketplaces for lodging, primarily homestays for vacation rentals, and tourism activities are on the rise.

Have you heard of Airbnb?

Airbnb is a service that lets property owners rent out their spaces to travelers looking for a place to stay. Travelers can rent a space for multiple people to share, a shared space with private rooms, or the entire property for themselves. There are over 7 million listings on Airbnb worldwide in 2022 and there are 100,000 cities with active Airbnb listings in 2022. 

Doing rentals is a good way to earn extra income. And because of Airbnb, it’s currently catching the eye of many. They say it's really easy to get started with this type of business. But first, ask yourself these questions: 

Do you have a property or a room? 

If you do have a property, where is it located and what does it look like? You need to have a reason why clients should pick you. It does not mean that when you list, customers will come flooding in and inquire about your property. If you have a room, is it spacious enough for booking accommodations?

Are you willing to make efforts and spend for improvements?

Keep in mind that you do have competitions. Although it is true that you can always start small, you will be spending some money on your listing in order for it to look more attractive on the dashboard. As you’re sprucing up your place, you’ll need to remove clutter and try to provide basic amenities, like toilet paper, soap, and towels, to help create a great experience for your guests. Extra touches, like a local bottle of wine or a box of chocolate, can make your guest feel special.

Are you ready to undergo the process?

Before listing your place on Airbnb, you might need to get permission. It may be to your homeowner's association, co-op, or even to your landlord. It’s also important to find out what laws and taxes apply to short-term rentals in your area before you begin hosting. Paris, Barcelona, Amsterdam, Miami, and Santa Monica have some of the strictest policies regarding who can and cannot rent out Airbnb’s.

Will it be comfortable for you to have people around?

This matters most especially when you will be renting out part of your home while continuing to live there. First, you’ll want to find a safe place to store anything of high sentimental or financial value. Strangers are your guests. You should be okay with the idea of having them around and even providing service for them, but of course, depending on your listing since you are still the one in charge of the rules. 

Secondly, hosting requires skills in customer relations and communication. Are you ready to interact with other people? An Airbnb property is likely to be more work-intensive than other available rental avenues, as it's your responsibility to maintain the property to a high standard at all times. Airbnb will hold you to account if they get complaints from guests.

On a daily basis, you will need to handle inquiries from interested guests, necessary information for guests who will arrive soon, and issues and requests of guests currently staying in your home.

So, with all those being said…Do you think this way is a great match for you? Of course, in the long run, you will definitely be able to handle it easier as you expand and improve your business and even have people to work with you in terms of management. 

But if you think this is not for you, cheer up! In Real Estate, you have a lot of other options. May it be short term and long-term rentals, flipping properties and second home purchases – We love consulting our clients on how to build wealth through real estate. Like all the time, success takes hard work and may not be guaranteed. But with great determination and teamwork, anything is possible.

Real estate investments can be a great way to earn extra income, but they're not for everyone. Because you still need to know the market, the area, property, process out papers, legalities and so much more! --- That’s why we are here to help. Every member of our team is committed to ensuring that ALL of your real estate needs are not just met, but exceeded!

Are you ready to start adding rental properties to your investment portfolio, whether in the US or overseas?

Click here to book an appointment with your Global Realtors, The Amy McDaniel Team!

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