Calling all future real estate investors! Airbnbs are increasingly becoming a popular way to generate income, and many people are starting to consider investing in these rental properties.
If you’re wondering whether this is a good option for you, it can be helpful to learn more about the benefits and drawbacks of investing and entering this hospitality industry before you dig into a book.
The Benefits of Investing in an Airbnb
One of the biggest benefits of investing in a short-term rental like an Airbnb (or VRBO) is that it can provide a steady stream of income. Depending on the location, you may be able to charge higher prices than traditional landlords because guests tend to pay more for the convenience and amenities provided by an Airbnb.
Additionally, since Airbnbs often come furnished and equipped with all the necessary appliances, there are fewer upfront overhead costs associated with owning one compared to other rental properties.
Another benefit is that Airbnbs are relatively low-maintenance investments. Once your property is set up, it requires minimal effort from you or a property manager regarding upkeep and maintenance. This makes them ideal assets for those who don’t want to spend too much time managing their properties or dealing with tenants.
Finally, Airbnbs have become increasingly popular over the past few years, meaning they have great potential for future growth and increased value over time.
Drawbacks of Investing in an Airbnb
While there are many advantages to property owners, there are also some drawbacks that should be considered before taking the plunge.
For starters, Airbnbs can be subject to stricter zoning laws than other types of rental properties. So before making any investments, make sure you understand what regulations apply in your area so that you don’t run into any issues down the line.
Additionally, Airbnbs tend to require more effort when it comes to marketing. So, if this isn’t something you’re prepared for or don’t feel comfortable doing yourself, it might not be the best rental property investment choice for you.
Lastly, depending on certain factors like location and seasonality, Airbnbs may also suffer from periods of low occupancy due to changes in demand—making them potentially less profitable during specific times of the year.
Investing in an Airbnb can be a great way to earn a steady income while still having plenty of free time on your hands. But as with any investment decision, there are pros and cons that need to be weighed carefully before taking the plunge.
Take some time to research local zoning laws and market trends so that you understand exactly what’s involved when it comes to owning an Airbnb property before committing your money to this type of investment opportunity.
How to Get Started Investing in Airbnb’s
Investing in Airbnb is a great way to generate passive income and diversify your portfolio. But where do you start?
First, I suggest listening to this podcast episode on Become a Media Maven. In this episode, Francesca Baglio chats with host Christina Nicholson and breaks down the biggest myth about investing in real estate, shares how she started investing in real estate, and breaks down the biggest challenges women face in real estate investing.
She gets into all the details about the short-term rental industry including a perfect guide to interior design for profit maximization, how to become an Airbnb superhost in a rural area or a busy place like New York, and how to do an Airbnb search to guarantee extra income… even if entering the short-term rental industry is a side hustle (for now).
Do Your Research
Before taking any financial steps, it’s important to do your research. Start by researching the local area where you plan on investing. Look at factors such as population growth, job opportunities, and tourism trends – all of which will affect both rental demand and rental rates. (Yes, some places are “best places” when it comes to a short-term rental.)
You should also take some time to review other Airbnb rentals in the area to get an idea of what amenities are being offered, what works well for other hosts, and how much they are charging per night. This will give you valuable insight into what people are looking for when booking an Airbnb and help you make decisions about how to set up your own property.
Understand Your Financing Options
The next step is to understand your financing options. Depending on the size of the investment and the location of the property, there may be different financing options available to you as a rental owner.
For example, if you’re looking at a multi-family property in a major metropolitan area, there may be several lenders who offer loans specifically tailored for this type of investment. It’s important to do your due diligence here and compare interest rates and fees from multiple lenders before making a decision about which one is right for you.
Secure Your Property
Once you’ve done your research and secured financing for your investment property, it’s time to secure the actual property itself.
This means finding an agent who specializes in real estate investments or working with an experienced broker who can help guide you through the process from start to finish. They will be able to help identify properties that meet all of your criteria (location, price point, etc.), negotiate contracts with sellers, and ensure that all necessary paperwork is taken care of prior to closing on the deal.
Investing in Airbnb properties can be a great way to generate passive income while diversifying your portfolio – but only if done correctly! By doing proper research on market conditions, understanding financing options available to new investors, and working with experienced professionals when securing a property – potential rental owners can set themselves up for success when investing with Airbnb properties!
Now that you have a general idea, let’s get specific with some reading material! If you’re new here, I think reading is one of the best ways to learn just about anything. I even have an entire book section here on my blog!
5 Best Books to Help You Invest in Airbnb
There are a number of books out there that can help you get started on your Airbnb investing journey, so let’s dive into some of the best ones available.
1. Airbnb for Dummies by Symon He
You’ve got that spare tower, mansion, apartment, couch, or perhaps even treehouse (really―there are more than 2,400 treehouses listed on Airbnb). You’re a polite, clean, and tolerant host. And you want to make some money.
Congratulations, you’re fully qualified to become part of the Airbnb revolution!
The comprehensive book covers all the basics of setting up and running a successful Airbnb business, including how to find and evaluate potential properties, how to market your listings, and how to manage your rentals.
It also includes tips on how to deal with common challenges that Airbnb hosts may encounter, such as difficult guests or maintenance issues.
In addition to the practical information, Airbnb for Dummies also includes case studies and real-life examples of people who have successfully made money through Airbnb investing.
2. 30-Day Stay by Sarah Weaver
30-Day Stay is a thorough guide to finding and operating a medium-term rental (MTR).
The concept is simple and profitable: Instead of fighting short-term rental regulations or sacrificing cash flow to long-term rentals, the host requires a month-long minimum stay in a furnished property and reaps massive profits.
With nearly thirty properties and decades of real estate investing experience between them, authors Zeona McIntyre and Sarah Weaver introduce a powerful yet flexible real estate asset class with entertaining case studies woven in to keep you engaged the whole way through.
Discover exactly why this strategy trumps short-term and long-term rentals and learn how to find the right properties in the right markets, supply the right furniture, and source the right tenants.
This great book is on my list to read after I met Sarah when she joined my talk at FinCon in 2022. Financial freedom, anyone?!
3. Short-Term Rental, Long-Term Wealth by Avery Carl
Whether you’re new to real estate investing or you want to add a new strategy to your growing portfolio, vacation rentals can be an extremely lucrative way to add an extra income stream. First, you need to ensure you acquire and manage your properties correctly.
Traditional rental properties are a great way to create wealth, but short-term rentals can bring in five times more cash flow than long-term rentals.
Avery Carl, the CEO and founder of The Short Term Shop, will show you how to choose, acquire, and manage a short-term rental from anywhere in the country.
Plus, learn how to avoid common pitfalls and overcome obstacles that keep many would-be investors from ever getting started in Short-Term Rental, Long-Term Wealth.
4. Airbnb Business: The New Up-to-Date Guide to Become a Successful Airbnb Superhost with a Fully Automated & Highly Profitable Property by Jacob Harvey
Investing in real estate has never been easier or more profitable, and now, with this guide, you have the keys that will unlock the door to success in Airbnb rentals.
Filled with useful and practical advice from a Superhost’s experience, this book Airbnb Business is a one-stop resource for anyone seriously considering quitting their 9-to-5 job or simply wanting to generate extra monthly income from a profitable, passive real estate investment business.
5. How to Set Up and Run a Successful Airbnb Business by Frank Eberstadt
If you’ve been playing with the idea of starting your own Airbnb side hustle, you’re not alone. Data from Stratos Jet Charters show that approximately 14,000 new hosts are joining Airbnb… every month.
So if you plan on turning a decent profit with your Airbnb listing, you will have to find creative ways to stand out from the competition.
If you don’t have much experience hosting guests or you’ve never actually stayed in an Airbnb before, then even the mere thought of letting a complete stranger stay under your roof can be intimidating.
The good news is there’s nothing to worry about. Because the truth is anyone can start their own Airbnb rental business.
All you need are practical strategies and principles that have been proven to work repeatedly found in How to Set up and Run a Successful Airbnb Business.
From learning how to identify profitable investments to setting up efficient management systems, these books cover all aspects of starting or growing an Airbnb investment business.
You know I love a good book, so please let me know if I’m missing any that I should add to the list. You can find me on social media at @ChristinaAllDay.
As I write this, I’m currently looking to throw my real estate investing hat into the ring, so if this is something you’re currently doing, drop me a note and let me know how it’s going!
One More Thing…
Before I go, I don’t want to leave anyone out who may be interested in a long-term rental. For this, I suggest reading one of the many books by Brandon Turner. He is an author, entrepreneur, and active real estate investor with more than 500 rental units and dozens of property rehabs under his belt.
In addition to hosting The BiggerPockets podcast, he is the author of:
- Rental Property Investing
- Managing Rental Properties
- Investing in Real Estate with No (and Low) Money Down
- How to Invest in Real Estate
- The Intention Journal
If you want to learn about the real estate business and achieve financial independence through real estate deals, I highly recommend The BiggerPockets podcast. There are tons of other rental podcasts as well as Airbnb podcasts to help you build your rental property empire.