Thousands of Australians are starting to find that property investment is the best passive income opportunity available. You don’t need to do much, and if you’re patient, you can watch your investment grow exponentially over time.
If you aren’t quite as patient, I have a fantastic solution for you: Airbnb! Yup, the famous home share company is not only convenient and economical for guests, but if you become a renter, you can really bring in the big bucks. Here’s what you need to know if you want to take advantage of Airbnb for your investment property.
Make More Than Renting
While you might have considered renting out your investment property to long-term tenants to make some extra money, if you were to use Airbnb instead, you could make much more each month. This reason is because Airbnb properties will demand more per night than a standard monthly rental agreement. If you’re able to keep your property occupied most days of the month, you could expect to bring in a few thousand dollars each week rather than each month.
The best part is that nothing will really change on your part. You can still sit back and collect payments, and the Airbnb system is incredibly efficient and reliable. You might need to put in some extra work, but more often than not, Airbnb guests will treat your property well (how much damage can be done in one night?).
There aren’t many limits when it comes to Airbnb investment properties, and the more effort and money you’re willing to put into the market, the more you stand to make in the long run. With that in mind, before making the final decision, you should keep the following in mind…
Potential Drawbacks
Not everything is 100% perfect, and every investment opportunity is bound to have a few potential downsides. One of the most significant with the Airbnb option is the hidden fees. From the latest information, Airbnb takes a 3% fee from hosts for each reservation. It might not seem like much, but over time this can add up.
You must also consider the upkeep costs for your home. You’ll want to make sure that it is always spick and span and ready for the next guests. While you can charge guests to cover cleaning costs, it’s still something to consider.
Finally, you’ll also need to keep in mind that slow periods happen. If you don’t live near a hot, year-round travel destination, you might experience slow months throughout the year. With a long-term renter, you’ll always have a full house and receive income. With Airbnb, you’re only making money when someone is staying there.
Now is the Time
Property investment is widespread, and it’s only going to become more popular over the next couple of years. If you want to take full advantage of the Airbnb boom, you should get started sooner rather than later. Get in touch with me and let’s discuss your options so you can get the most out of your investment property.
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