8 of the Best Places to Buy Rental Property in 2020

Buying rental property is a great way to get your foot in the door to becoming a property investor.

Rentals are great because they aren’t a huge amount of work and, in the right markets, the bring in loads of cash on a regular basis. That’s the key, though, the “right” markets. It can be difficult to figure out which cities to buy in because rental prices are always fluctuating.

Today, we’re going to discuss why buying a rental property is a good investment, what factors you need to consider when looking at a new city, and the 8 best rental markets in the country.

Choosing the right rental market can be the difference between a property making you a fortune or costing you just as much. Find and purchase homes that generate income with Zumbly — and maybe start with one of the cities below. Let this guide serve as your inspiration of the best places to buy rental property.

Why Buy Rental Property?

Rental property is a special type of property investment because it pays off both immediately and in the long-term. Although there’s a bit of extra work involved with the continual upkeep of the property while you’ve got tenants, the regular payments allow you to cover the mortgage payment and then some (in booming rental markets).

There are also a lot of tax deductions to consider as a landlord. You can write off the interest on your mortgage, insurance, the interest on your credit card (when used to make house-related purchases), property taxes, and maintenance costs. If you were flipping the house, for instance, these would all be extra costs.

It’s not all sunshine and roses with rental properties, though. If you’re not in the right market, they can end up being a huge money pit. That’s why it’s all-important to find the right places to buy a rental property.

What Factors Should You Consider?

The best places to buy rentals will have lots of affordable housing, positive wage growth, low unemployment rates, steady population growth, and an increase in average property value and rental yield. These cities have the best combination of these factors in the country.

Related: How to Look for a Fourplex for Sale

1. Orlando, FL

Alt Text: Orlando, Florida best places to buy rental property

Orlando is centered around a booming tourism industry. With beaches, malls, and theme parks, it’s become home to many retirees and a growing workforce for young people. The job growth, population growth, and rent growth all look ideal and it’s been called one of the best places in America to buy a second home.

2. Charlotte, NC

Alt Text: Charlotte, NC best places to buy rental property

Charlotte, according to CNBC, is in the top 5 cities in the country to start a business. As a business-heavy city, it’s seeing unprecedented job growth and population growth, as a result.

Home prices have risen somewhat in the last two years, making it slightly less appealing for some rental investors. However, the employment boom will keep pushing the population growth along, which is always good for rental numbers.

3. Tampa, FL

Alt Text: Tampa Florida best cities to buy rental property

If we head back to central Florida, we’ll see another hastily growing city in the greater-Tampa area. Tampa is home to a huge university and several major sports teams that make it both a tourist destination and a viable place to live.

What makes Tampa particularly attractive are the home appreciation rates and rising rental rates. It’s still cheap to buy, but it won’t be in a few years’ time and rent is going up as well.

4. Oklahoma City, OK

Alt Text: Oklahoma City best cities to buy rental property

OKC has grown a lot in the last decade. What makes this population growth exciting for property investors is that it’s mostly millennials.

It’s truly become one of the economic hubs of the south, as a prominent player in petroleum production, natural gas, scientific, technical, and administrative services. Millennials with good jobs mean great things for rental prices.

5. Houston, TX

Alt Text: Houston Texas, best places to buy rental property

It’s hard to believe that Houston could possibly still be one of the best places to buy rental properties; it is. There are currently 7 million people living there, but it’s still almost doubling the nation’s population growth rate.

There are 53 Fortune 1000 companies in Houston, fueling its economic growth. Despite the size, growth, and wealth, the average home price remains under the national average. These things are what makes Houston such a desirable spot for a rental property buyer.

6. Atlanta, GA

Alt Text: Atlanta Georgia best places to buy rental property

Atlanta being the fifth-largest metro city in the United States alone should be a fact keeping it off the best rental market list. The housing market is more expensive than the national average and the industry has been firmly ingrained for a long, long time.

However, the numbers don’t lie. Atlanta has one of the lowest unemployment rates in the country and unprecedented population growth. Houses might be a bit more expensive, but the median rental rate is $1,800 per month, so you know people are ready and willing to pay high rental rates.

7. Cincinnati, OH

Alt Text: Cincinnati Ohio best cities to buy rental property

The Cincinnati-Dayton area is an interesting case because both cities are growing steadily. Situated across the river (and state line) from one another, both Cincinnati and Dayton’s housing prices are a whopping 25% below the national average.

Despite the low unemployment rates and decent job growth, the actual population growth remains pretty stagnant. However, the low housing costs and rising rental rates still make Cincinnati-Dayton a promising market to invest in.

8. Colorado Springs, CO

Alt Text: Colorado Springs CO best cities to buy rental property

Colorado Springs wouldn’t have dreamed of being on this list a decade ago. However, with rapidly dropping crime rates and a lot of younger people being priced out of Denver, it’s become one of the up and coming cities in middle America.

Although housing prices have already come up significantly in the last year, we’re expecting Colorado Springs to go the way of Fort Collins or Denver. People love the natural beauty in Colorado, so buy now and watch your rental investment grow in value over the next 10 years.

The Best Places to Buy Rental Property

The best places to buy rental property are often right under your nose. Take a look at the numbers and you’ll see all you need to know. Job growth leads to population growth, and population growth leads to higher rental demand. 

Find the places that are poised to boom rather than markets that have already boomed. It’s always better to buy cheap and have to wait for the rental market to grow than to buy high in a market that can’t grow much more.

To find out if your prospective rental investment is going to pay off, join Zumbly today.Related: How to Make an Offer on a House

Long Term versus Short Term Rentals

A rental property can be a fantastic investment, but it can also be money going down the drain. This all depends on how it’s managed. Managing a property requires a lot of time and patience, both in terms of tenants and the investment itself. 

People looking to invest in a property typically think along the lines of long term rentals, but short term rentals are just as lucrative of an opportunity. These are two very different ways of investing in real estate. As short term rentals rise in popularity, they’re starting to give long term options (which have long had the monopoly) a run for their money. 

Investors want to know what the best option for them might be. With our expertise at Zumbly using home scoring to help investors find the right property, we’re here to help. Let’s start by going over some common terms.

Related: The Easy Guide to Leasing and Renting

What is a long term rental?

A long term rental is a property that can be lent out for approximately six months or longer.  The tenant signs a long term rental agreement with the landlord and must stay for the given period of time.

What is a short term rental?

This is just the opposite of a long term rental since it can be rented for less than six months. These are also referred to as vacation rentals because a stay in a short term rental could be as short as a week or even a few days.

Subletting/sublease

According to the legal definition, subletting is leasing or renting a property in part or whole to a subtenant, who then has the right to use the property. The subtenant has the right to use the property for rental purposes as long as they have the consent of the landlord. This is a form of short term rentals that usually works well for tenants who travel often or for long periods, but still want to retain their apartment back home. It allows them to make a supplemental income while having a physical presence in the house to deter burglars.

However, it’s important to note that there are many rules and regulations against subletting. For instance, subletting social housing is a criminal offense. It’s also illegal to sublet if one hasn’t obtained the consent of the landlord, even if the rental agreement allows subletting.

The sublease is very similar to subletting. In subleasing, the tenant who signed the original lease can lease the property to another tenant (the sublessee). The process is a bit more complicated, as the sublessee has to sign the original contract and pay the subleasing fees.

Check out some long term and short term rentals at Zumbly

Airbnb

airbnb apartment for rent

This is perhaps the most popular form of short term rentals at the moment. It’s usually easier to arrange than subletting and subleasing because the logistics are much simpler. Airbnb is not classified as subletting by law in some states in the US.  The concept of Airbnb borrows heavily from subletting, but with variations to minimize confusion and increase the legality.. 

For example, in some states, the homeowner must be available in the rental for the duration of the client’s stay. In some places, space can only be occupied for 120 days in the year, and one cannot have multiple property listings. For others, the property manager must rent out the property for more than 30 days. These kinds of Airbnb restrictions make it more of a home share than a sublet.

Related: Top Airbnb Host Tips

Benefits of Short Term Rentals

Flexibility

Short term rentals are more flexible compared to long term ones. The contract is usually for a few days to several weeks at most. All you need to opt out of the contract is to provide a notice to the landlord that complies with the terms and conditions of the agreement entered by both parties.

Most people consider this flexibility an advantage only for the tenant, but it works both ways in case the landlord is dealing with an unruly customer. They can cancel their booking even if it may result in a penalty. Greater flexibility can also mean pricing that can be adjusted depending on how popular a season is in a given area. For example, short term rentals can be priced higher in summer when there’s more demand due to an influx of tourists versus the winter season. 

Better maintenance

Short term rentals are cleaned frequently, so there’s ongoing maintenance as tenants move in and out. Issues that would typically take longer to identify are easier to spot since clients bring up the problems they encounter during their stay in the rental.

Personal use

The investor can decide to use the rental for their own personal use for a vacation with the family instead of spending money on a hotel room. If you live in your short term rental property, you can simply take it off the market and take a break if you desire. One can do this during off-peak season to avoid interfering with the regular rental season.

Better income potential

A short term rental in a popular vacation spot is guaranteed to bring in more income compared to a long term rental. This is because one can change the rates according to the season and facilities offered. If the tenant is on a short-term lease, the landlord can increase the rent depending on the market conditions. This concept is different from long term leases, where the landlord is stuck with the same rate in the contract even if the market rates are favorable for a rent increase.

Check out some homes on Zumbly to use as short term rental properties.

Disadvantages of short term leases

key going into a house

Uncertainty

Just like the property manager can terminate the lease with an unruly tenant, the tenant can also terminate their contract earlier.  This leaves the landlord with uncertainty when it comes to the flow of income. Also, short term rentals have peak and off-peak seasons when business is booming and when it’s slow. This can also affect the flow of income for the investor.

However, this is not a big problem if you’re using your short-term rental as a strategy to generate passive income. Long-term tenants can also terminate a lease early, and it’s much more difficult to find long-term guests. On the other hand, the short-term model requires less commitment and you are more likely to find replacement guests more quickly.

Higher maintenance costs

Short term rentals see a lot of traffic because different people are using it use your facilities regularly. Without proper maintenance, the property can gradually deteriorate. To maintain the property at peak conditions, the property manager must set aside more resources for maintenance and repair.

Related: What Happens When You Break a Lease

Benefits of long term rentals

architectural house with pool

Consistent income

Long term rentals utilize the traditional concept of renting, which is why they enjoy a steady stream of income. The tenant is on board for the long haul, and they have committed to the lease by payment and signing a lease contract. This means the investor doesn’t have to keep looking for new clients for the duration that the tenant is legally using the property. These rentals don’t suffer from seasonal variances that affect the flow of income.

Withstands market fluctuations

The real estate landscape is a dynamic process that is always fluctuating, so property prices can quickly dip. Long term rentals are less affected by the daily fluctuations since there is already a fixed rate by the property manager and the tenant. Any changes can be made at the end of the lease protecting the investor, similarly to the level of protection that the tenant gets.  

Appreciation in value

Long term rentals will appreciate in value with time even with the rent fluctuations. This means that the property is an asset that one can sell later on for huge profits. The investor can even use the rental as leverage to acquire more property.

But remember, short-term rental prices are easier to adjust. They can appreciate too, in the sense that property managers of short-term rental properties can raise prices as demand increases.

Check out some long term and short term rentals at Zumbly

Disadvantages of long term rentals

Long-vacant durations

Long term rentals can stay vacant for long periods before clients occupy them, meaning they are not bringing in any money. It’s challenging to find a suitable tenant who fits the profile that one needs for the rental. This can be a huge setback, and property managers may find themselves eventually losing money.

Less control

Once the place is rented, the investor has limited control over the property. Tenants can make some changes to fit their needs, and the property manager needs to be okay with the changes to make the tenant happy. 

Little flexibility

The property is rented for long periods, so both parties are stuck in their contracts. There is little room for flexibility unless a major problem arises. This also means the property manager can’t make significant changes to the property as long as the tenant is still on the premises without compromising the terms of their agreement.

Check out some vetted and scored homes at Zumbly for your next property.

Which one is right for you?

man staring at papers deciding on a plan

This question can only be answered depending on the investor’s needs. For investors looking for higher income and flexibility to change rates according to seasons, then the short term rental is a good investment fit. Long term rentals are beneficial to investors who don’t have a lot of time on their hands but want passive income and investment that appreciates regardless of their direct involvement with it. 

Conclusion

Owning property is an excellent strategy for generating passive income, whether you are acquiring a short term or long term rental. However, before investing, it’s crucial to have a clear goal of what you want to achieve with the property. With that in mind, whether or not you should use a long-term or short-term lease strategy depends on your goals. Consider them carefully and match them up against the factors we listed above to make your final decision.

Related: Renting Versus Buying: The Ultimate Guide

How to Calculate Vacancy Rate for Your Rental Property

Putting up a rental of any sort is a potentially profitable endeavor that nonetheless runs some risks. If you don’t have enough tenants, you won’t be generating as much income. That’s why it’s important to keep track of your property’s vacancy rates.

Using this information for your operations helps you increase your efficiency and get a good idea about your potential flow of income for the upcoming year. With a general idea of how much you’ll profit, you also get a sense of how much cash you can set aside for renovations, maintenance, and expendable funds. At Zumbly, we use a process of home scoring to rate the potential of residential properties. With our expertise in real estate calculation and analysis, here’s our guide to calculating vacancy rate.

Related: City Versus Suburb: Where Should You Live?

What is the vacancy rate?

In the real estate world, the term vacancy rate refers to the number of units in a rental property that are vacant at any given time. The vacancy rate gives the property manager a realistic understanding of how the property is doing compared to competing properties in the same geographic vicinity. Since the numbers don’t lie, this helps property managers who own multiple properties create campaigns for their poorest performing ones. This helps property managers with only a couple properties rethink their marketing and design strategies.

Sometimes vacancy rates have nothing to do with the property itself, but high vacancy rates may indicate an issue with the economy. A vacancy rate of lower than 4% is positive, while anything above 7% is negative. Low vacancy rates signify that people want to live in that area, and they are satisfied with the rents or services provided by the property. The vacancy rate is calculated by taking three types of units into account:

  • Vacant units that are ready to be rented
  • Units that have just become vacant 
  • Units under repair

Why does the vacancy rate matter?

empty room with closed curtains

Cash flow

The vacancy rate has a direct bearing on the stream of income flowing into the property manager or investor’s pockets. If a property has a high vacancy rate, it means the investor is not generating revenue from all of the units in their building. This can result in financial losses because regardless of the high vacancy rate, the property manager still has expenses associated with the building. After all, a high vacancy rate is directly responsible for negative cash flow.

Cap rate

The vacancy rate affects the capitalization rate of the property. The cap rate, as it’s commonly referred to, is the real return on investment that the investor is getting from the property based on the expected income. Areas with low vacancy rates offer higher cap rates to property managers. A reasonable cap rate in real estate is between four and ten percent or higher than that.

Occupancy rate

The occupancy rate is the number of occupied units in a multi-family or rental property compared to the total available units. Since this is the opposite of the vacancy rate, then that means a property with high occupancy rates is doing quite well.  

Related: How to Find Investment Properties

Steps for calculating vacancy rate

calculator on top of paper


Step one 

Identify the total number of units in the rental property. This number encompasses the number available units, those under repair, and those already occupied. 

Step two

Multiply the number of vacant units in the property by 100 and divide the subsequent result by the total number of units in the building.

Example

If the rental property has 200 units in total and out of this number, 80 units are vacant; the property manager needs to multiply the 80 units by 100 and then divide the result by the total number of units, which is 200.

80 x 100 = 8000

8000/200 = 40%, so the vacancy rate for this particular rental is 40%.

Formula for vacancy rate:

(Vacant units x 100) / Total units = % vacant

Average vacancy rates 

orange and grey apartment buildings


Average rates for short term rentals

Short term rentals tend to have slightly higher vacancy rates because people stay in them for a shorter period of time. Short term rentals can range from home share options like Airbnb to hotels and motels. These facilities tend to have an average vacancy rate above 25 percent, depending on the season. Since the cost of rent per day tends to be slightly higher for short-term rentals and most short-term rental property managers are using a passive income strategy, a slightly higher vacancy rate is nothing to be concerned about.

An increase in vacancy rates for short term rentals can occur when an area has a newly released long-term rental, which attracts a segment of your short-term customer base that might be looking for a permanent place to stay.

Average rates for single-family properties

The vacancy rates for single-family properties are low, with an average of 5%. This is because most people in that bracket are living in their own homes. They are also looking to start a family and need something stable. They have built their lives around the convenience of where they are living, and they can enjoy a particular lifestyle because of it.

Average rates for multifamily properties

The vacancy rates for multifamily properties are also low because they also need stability and are typically saving for their own single family property. They probably have kids in schools nearby and jobs that are close to their home. Also, these types of units appeal to people who prefer to have close neighbors and prefer to live in the center or near the city.

Related: How to Start a Airbnb Business

What factors affect vacancy rates?

urban city with lots of people

When it comes to vacancy rates, they vary from one place to another and are determined by factors like location, crime, schools, and other social and physical amenities.

Location

The more remote the area is, the higher the vacancy rates for rental properties. After all, renters are looking for convenience and proximity to amenities to determine where they want to live. 

Crime

An area with a high crime rate is not attractive to people looking to rent. It affects their quality of life since they and their loved ones can’t be safe even within their homes. 

Low income 

Low income affects people’s ability to rent spaces, and so they are either forced to move out or landlords have to kick them out because of lack of payment. It is challenging to sustain low vacancy rates, especially in low-income neighborhoods.

Poor infrastructure and lack of amenities

If there is inadequate infrastructure, like utilities, schools, or hospitals, then renters are not attracted to the area. It would not be able to meet their needs in case they fall ill or need to take their kids to school.

Competition

If the rental building is situated in a very competitive market and offers amenities that renters can’t afford to have in their building, then that can lower the vacancy rate. Renters are attracted to buildings with amenities like pools, daycare facilities, and some aspects of technology in terms of safety and utility.

Are you an investor? Find a well-located home for short-term rentals at Zumbly.

How to decrease vacancy rate

people gathering inside the apartment and sitting on a chair

 If the reason for high vacancy rates lies within the management of the building, then there are ways to reduce the rates.

Here are a couple of ways to do so:

  • Offer competitive rents in the same price bracket as competitors
  • Maintain the property by having repairs made in a timely fashion and keeping the premises clean
  • Maintain the exterior of the building
  • Provide basic amenities and advance ones to level up to the competition
  • Provide tenants with at least one paid utility like heat or water
  • Build rapport with the tenants by being approachable and available

Conclusion

Instead of looking at high vacancy rates as an end to a real estate investment, it should be an opportunity to improve services and relations with tenants in the future. With this positive change in mindset, it can help any investor or property manager to flourish in the real estate industry. But it all starts with the right properties. Get started with Zumbly for home scores and rental calculators to match you with the perfect short or long-term properties for you.
Related: What Happens When You Break a Lease

Top Airbnb Host Tips

Airbnb is an excellent way to make money with the extra room in the house or apartment. Some say it’s the modern way of doing real estate. 

Even though the Airbnb app has made the process of renting out a place extraordinarily efficient and easy to follow, there are some strategies that the host should take into consideration. 

At Zumbly, we help you find homes to live in or put on Airbnb for your side hustle. With that in mind, here are some top Airbnb host tips that can help bring in more customers and encourage former clients to return. 

Related: House Hacking: Live For Free With An Airbnb Investment Property

Be Honest

Everyone wants to put their best foot forward when it comes to marketing their listing. Some would go as far as embellishing and exaggerating, whereas others would be honest and truthful even though it hurts their listing.

It’s always essential to be honest with a listing. If you say that a particular service is available when in fact, it isn’t, this can easily lead to a bad review. In turn, this can deter other customers. 

For example, if there’s no space for multiple people to sleep, don’t say that there is plenty. If the balcony does not have a great view, don’t say it does. If something is not working, provide the guest with a discount. 

Don’t forget to be honest with the pictures. Airbnb can send a photographer to take professional photos. They will make the place look as good as it can be without masking reality. The last thing an Airbnb host wants is to mislead anyone about the space, amenities, and size.

It’s also important to be honest about the kind of host you plan to be. Just how some guests like more interaction while others prefer to be self-sufficient, hosts have preferences too. Being up-front about how often you’ll be at the property and whether or not you plan to share meals with them or provide social perks will help set expectations.

Ready to set up an Airbnb property? Get started by browsing homes on Zumbly.

Make The Rules Clear

Before letting the guest book the room, it’s essential to let them know about the rules. Ask them if it’s OK, and if they agree, then it’s appropriate for them to make the purchase. 

The rules should entail:

  • Adding community-related regulations, such as keeping the noise down after 11 PM.
  • Letting them know if pets or babies are allowed.
  • Enforcing a check-in time.

Related: How To Start An Airbnb Business With 5 Easy Steps Using Zumbly

Adequate Check-in and Check-Out Time

The most common mistake that people make is trying to maximize revenue by allowing guests to check-out on the same day that other guests check-in.

An Airbnb host can quickly clean up if they are only renting out one room. However, it can be challenging if they decided to rent a whole apartment and need to clean it in a short period of time. This can be very stressful for you and for your guests, so it’s not advisable to do same-day check-out and check-in for consecutive bookings. 

The worst part is that the host might need extra sets of bed sheets and towels in case they can’t clean it on time. The best system is to have the proper preparation time or day between guests, and occasionally allow consecutive check-in or check out. 

Keep in mind that not every guest will treat your space with care. Some will leave everything a complete mess and it may take you over 5 to 6 hours to restore it. Some guests barely cook, while others enjoy creating a culinary masterpiece every day – without washing their dishes and leaving your kitchen in order. With that in mind, anyone renting out an entire property should make sure to give themselves enough time between guests.

Send Emails a Week Before The Guests Comes Over

A week before the guests arrive, it’s a good idea to send a personalized email with information about the property, neighborhood, cafés, gyms, places to eat, and activities. This is important because not every visitor will have access to data on their phone. Don’t forget to ask if they will be driving to your property, and if they are, let them know where they can park.

Ask About Food Preference

Every guest has different preferences on what they like to eat. If you plan to be a more hands-on host, it’s best to email them to ask about food preferences ahead of time, such as how they want to take their coffee, or dietary restrictions. 

This will let them know that when they arrive, they will experience something unique and personalized. You can even provide the guests with a basket of fruit, chocolate, or anything special upon their arrival.

Greet The Guests At The Door

The guests are most likely to be stressed from traveling to their destination. Whenever it’s possible, greet them at the door and be sensitive to their needs. Some have a lot of questions, some want to be left alone, and still others want company and a good conversation to start their adventure. 

Try to read their body language, but if they are mysterious, ask them if there’s anything they need.

Final Note

Airbnb provides a new way of doing real estate. It’s simple as renting out an entire apartment or house to rent out a room. It’s like giving someone a more affordable living area with a personalized touch. 

Just like real estate, Airbnb does come with some tips and tricks. The host needs to know some common courtesies so their guests will feel welcome at home. 

Fortunately, the strategies listed above are excellent Airbnb host tips that can help anybody dive into the Airbnb business venture. Now that you know about being a good host, check out some properties that would make great Airbnb spaces on Zumbly.

Related: Is Buying A Home Without A Realtor A Good Idea?

How to List Your Home on Airbnb and Earn Easy Travel Cash

When Joe Gebbia, Brian Chesky and Nathan Blecharczyk came up with the idea of AirBnB, it was motivated by a need for housing and accommodation during travel. A hotel room simply can’t offer the same level of comfort and intimacy that a home can offer.

As the concept caught on globally, an overwhelming number of people started seeing the platform and homestays as a better alternative to the hotel experience. Today, AirBnb is listed in 191 countries – so in almost every corner of the world, a wayward traveler can find a homely accommodation at the press of a button.

Related: How to Improve Your Home to Make More Money on Airbnb

What to consider before listing on Airbnb

Before one lists their home on Airbnb, there are a few things to consider.

Are you comfortable with strangers?

Airbnb essentially means inviting total strangers into the host’s personal space. That is not an easy thing to do, especially if one is a private kind of person. It may work best if the host prefers to leave the entire house for the guest or the living quarters are completely demarcated.

AirBnb offers a lot of insurance and protections to hosts. That said, it still involves allowing strangers into an often personal space.

Do you have the time to play host? 

Once there is a guest in a space, the host has to constantly cater to their needs to prevent the dreaded bad review. This means making time (lots of time) to be at hand to answer questions and make sure the guest feels comfortable and safe.

In addition, the host should expect emergencies that may require their physical presence. A host has to be flexible, because needs could arise at anytime.

What is unique about your listing?

Since the coming of Airbnb, many homeowners have jumped onto the bandwagon to rent out their homes and spaces. That means there’s a lot of competition. It’s imperative for hosts to identify the special features that they can offer which their competitors cannot.

Are you prepared for any liabilities?

With Airbnb comes the risk of theft, fire, injury and even death. Although there is Airbnb liability insurance, the psychological repercussions of such actions can impact the host and their family – especially if the location holds sentimental value.

Are you an avid learner and readily adapt to changes?

As an Airbnb host’s imperative for one to constantly learn, adapt and change certain aspects of their listings depending on the wave of demand and local market trends. Failure to do this is a sure-fire guarantee of failure to achieve the profit levels necessary to keep it up.

If after considering all the above, you’re still sold on the idea of being an Airbnb host, here are the steps to take for getting on board.

How to list your property on AirBnB

1. Create an Airbnb account

The first part is creating an Airbnb account, which is fairly simple. There are four options to sign up with: the host’s Facebook account, email address, Amex or Google account. The creation of an Airbnb account is free.

During the signup process it is best to put in as many details about the listing and as much as one can about themselves. Nothing scares potential guests off quicker than a mysterious host.

2. Put up the listing

Listing writing is an art form – it’s recommended you enlist the help of a professional writer to put together an excellent listing write up. The best part of putting up a listing with Airbnb is that they do not leave hosts alone to figure it out. They’re constantly on hand to offer advice and direction with their stellar customer service support.

For example, new hosts may be wondering how much to charge per night or how many nights to make available for guests. Airbnb provides pricing suggestions depending on the property, season and location.

3. Take photos of the space and describe the amenities

Visuals are a critically important part of the listing – so much so that in the early days of AirBnb, Brian Chesky would personally go to the homes of his first customers and take professional photos of their spaces.

While describing the amenities helps a lot the deal is cinched by photos of the space. So before any photos are taken, declutter the space and remove any personal items.

The photos should be taken in natural lighting because natural light is brutally honest. For example, the pool lit up in the night may look great but with natural lighting, it gives a more accurate picture of the area.

Speaking of accuracy, make sure the description of the amenities is accurate and honest. Remember, guests leave reviews and their reviews can make or break your hosting dreams. If anything is dishonestly depicted the property loses credibility with guests.

Another important piece of information when talking about the listing is the type of neighborhood it is in. Is it a lively loft in the middle of town? Is it quiet and suburban with very little activity around? What are the nearby attractions and what transport options are available to get there?

4. Talk about the perks

Guests on Airbnb are always looking for the accommodations with the best perks. These usually include the standard offering of

  • Internet
  • Towels
  • Kettle and coffee/tea/sugar/creamer
  • TV with Streaming options

Additional perks can be breakfast included in the rate, local teas or coffee, laundry services, toiletries, and even a guide. While the host doesn’t have to add any of the extra perks, their worth as a host can go up incredibly just by making a few additions.

Also, let the guests know about nearby attractions like parks, tourist attraction sites, nature trails, markets, and shopping malls. It’s also a good idea to let them know about the nearest grocery store, restaurant, hospital, and public transport system.

Prepare services to make hosting easier

Preparing to have the house cleaned and stocked means employing the services of cleaning services and odd job agencies. Most hosts wait until they’ve received a booking to begin looking for these services. However, it’s crucial for the success of the listing to arrange for these services before any bookings come through to ensure smooth operations once the guests have started arriving.

It’s in the best interests of the host to make necessary arrangements even as they set up their Airbnb listing. This ensures both the guest and the host can enjoy having each other.

In the event of an issue, address them with tact. No one wants to be put on blast. The Airbnb resolution center helps to resolve issues securely, professionally and privately. This enable parties involved to have an impartial arbitrator and resolve issues amicably.

Related: Apartment Investing 101 – The Ultimate Guide

And that’s it! You’re ready to start hosting. Most importantly, make sure to go above and beyond in your duties as a host – as big of a leap as it might be putting your home up to somebody else, it’s just as big a leap for someone to come and live in a strange place. Take care of your guests, and they’ll take care of you.

Happy hosting.

Related: Beautiful Houses – 10 Best Styles

Share on facebook
Share on google
Share on twitter
Share on linkedin

House Hacking: Live for free with an Airbnb Investment Property

House hacking is nothing new, but it’s definitely an under utilized strategy. A dream for many people is to become a homeowner. Fortunately, house hacking is a great way to achieve that dream. The best part is that house hacking is a very popular trend amongst the younger generation of first time home buyers.

The days of buying a property and paying a mortgage for 35 years is over. It’s painful, stressful, and puts you through an emotional roller coaster ride. Once you buy the property, you’re pretty much stuck. Can’t go anywhere, and have lost your freedom. It’s time to settle down!

The good news is that you don’t have to live that type of lifestyle. Buying a home shouldn’t be scary and this is where first time home buyers are house hacking through Airbnb.

What is House Hacking?

So what exactly is house hacking? House hacking is when you live rent free or have very little in mortgage payments by renting part of the home to others.

If the market allows it and if house hacking is done correctly an individual could even make a profit. Short-term rental services such as Airbnb and VRBO have made it easier to house hack and have successfully transformed the lives of many individuals.

For example, you can purchase a fourplex, rent out 3 of the units through long term rentals and use Airbnb or another short-term rental service to rent out your unit when you’re on the go or traveling. Essentially it empowers new first time home buyers the opportunity to live life to the fullest.

Related: What is a Good Cap Rate for Rental Properties?

How Do You House Hack and Live For Free?

There’s many different ways you can house hack. The first and most easiest way to house hack where almost everyone is familiar with is by having roommates. If you’ve been to college and hated in campus housing, then you’ve probably weighed the costs of living with roommates at a house close to the university.

According to Business Insiders with respect to on campus housing vs off campus housing, at University of Oklahoma it costs $1,266 average to live on campus. Meanwhile, finding an off campus location to live would only cost $566 a person.

Holy cow, that’s a lot of money saved. Talk about ripping students off. Well the good news, this is one of the ways students have been house hacking.

First find a three or four bedroom house, then you select the room you want (preferably the smallest one), then you sublease or rent the other three rooms.

Since you chose the smallest room, you can rent out the other 3 rooms for a higher price. If done correctly, the cost of the other 3 rooms should cancel out all if not most of your rent payments. Viola, you’re living for FREE!

Welcome to the world of house hacking, and students know how to do it best. Signup for Zumbly, to start researching great homes for house hacking.

Now what if I told you the this also applies to all other parts of real estate. With the emergence of Airbnb and VRBO, more and more first time home buyers are using Airbnb as an investment property.

Related: The Ultimate Beginner’s Guide On How To Find Investment Properties Using Zumbly

Why First Time Home Buyers are House Hacking With Airbnb?

Let’s be honest with ourselves. Living in debt really sucks. Especially when you work so hard for your money. Renting month to month is no longer feasible, and most landlords require a minimum of a one year lease and have a clause that forbids subleasing.

They have to lock you down in a long term contract because they have to protect themselves from turnover. The costs of finding a new tenant is extremely expensive for apartments.

First time home buyers are house hacking because they’re sick of being locked down, losing money month to month, and never getting the opportunity to live life to the fullest. Listen, you have only one life. It’s time to take control of it.

Related: The Ultimate Thailand Vacation Guide: How To Travel For Free with Zumbly

5 Benefits of House Hacking

There are many benefits to house hacking. We all want to spend more time with our family, travel the world, meet new people, and live a life without worrying for money.

House hacking helps you save more money, it builds equity, lets you live the way you want to live, you meet many new people, and most importantly it gives you experience.

Related: How much does it cost to build a house?

1. House Hacking Saves You More Money

It’s no secret that if you get a roommate or rent a room that your monthly mortgage goes down tremendously. Let’s say you buy a 3 bedroom house, and your payment after, mortgage, furniture, taxes, HOA, insurance, and other fees is $3,500. In a city like Los Angeles, California a room can easily go for $1,200.

If you rent all 3 rooms, you will receive a total of $3,600. Which not only pays your mortgage payment, it also brings an extra $100 in income a month. This is the long term strategy of house hacking.

Now if you really want to hack away, we highly recommend exploring options such as short term rentals on Airbnb. The opportunity of short term rentals is absolutely insane, and should not be ignored.

Here is an example of another model that you can try and implement for yourself. Let’s give a hypothetical scenario where you travel a lot for work. Your mortgage is still $3,500 a month, and you only stay at home for 2 days of the week because you’re always on the go for work.

One day you’re in New York to close that next deal, the other day you’re in San Francisco securing your venture capital. No matter what you’re doing there’s a solution, house hacking.

Since you’re only in your room 2 days a week, that gives you a total of 5 days free that can be put up on Airbnb. If your room can go for $120 a day, then you can make an extra $600 a week for a maximum total of $2,400. What would you do with an extra $2,400 a month? We would recommend saving it, and then using it for a bigger investment!

2. House Hacking Builds Equity

One of the best reasons to buy a home is to build equity. The struggle of building equity is when you have to pay it.

Luckily, with services like Airbnb and VRBO it’s been a lot easier to have the house pay itself off. Meaning your building equity without having to pay for it over time. Even better, you still get the awesome tax benefits of paying interest on a mortgage.

Every payment you make towards your mortgage, the more you own of your property. If you have a 30 year mortgage, you will own 100% of the home after you’ve made 30 years of payments.

That sounds like a long time, but no matter what decision you make you will always be paying to have a roof under you. If you rent, you’re not building equity, but if you own the home and make the payments towards your mortgage then you own more and more of the home with every payment you make.

If you do a 20% down payment, that means you own 20% of the home, and the bank owns 80% of the home.

As time goes by and you continue making on-time payments, then the banks ownership will slowly reduce. This is why it’s so important to own your home and not just throw away the money towards rent.

3. House Hacking Lets You Live The Way You Want

The beauty of life is to live life the way you want. It’s your money, you should spend the way you want to.

You need to enjoy every moment of your life, and being locked down on a home just locks you down. Why should you take life so seriously?

Living life for others, living life for society? That’s not how it should be lived. Zumbly was created to help you achieve your dreams.

Love hitchhiking, traveling the world, going to parties? Then you need to get your money to work for you and not for someone else. House hacking will let you live the life you want.

Tomorrow Ibiza, Monday Ko Phi Phi, Thursday Miami. Don’t ever miss another event that you want to go to.

If you have a room available, just put it up on Airbnb and use the funds to travel around the world.

A trip from LAX to Miami is only $107 if planned according. If you did a little more research then the 5 minutes we spent, you can probably find it for a lot cheaper. Here’s proof.

Related:

house hacking lets you fly for free

So how many days do you have to rent your home to pay off your round trip? Let’s say you live in LA, and you Airbnb your room for 7 days.

If you book out all 7 days, for $120 each a night that will leave you with $840. After fees and other expenses, that will leave you with somewhere around $600.

The flight costs $107 for a one-way trip which then leaves you at $493.

Now you just have to find an Airbnb in Miami. Luckily, there’s no shortage of things to do in Miami. You can rent a bunk bed for as low as $17 a night.

You’re always on the move so all you need is a place to crash, shower, and keep hygiene on point.

If your living expenses cost, $160 for a week then your left with $330 with discretionary income.

That gives you a spending budget of $48 a day.

There you go, you went to your dream vacation to Miami without paying a dime. Maybe you even came out on top and made some cash.

Check out how much similar properties can make a month by signing up for Zumbly.

4. House Hacking Lets You Meet New Awesome People

Every time you list your home on Airbnb, or get new tenants you meet new people. The more people you meet the bigger the network you have.

It’s a small world, so you never know who you meet. You’re exposed to so many different cultures, food, and most importantly other like minded people!

The same applies when you’re renting out your room to travel to other cities. You’re always on the go meeting new individuals and that’s one of the benefits of house hacking. Meeting new people is extremely fulfilling, and the bigger your social network the more opportunities you will have in life.

5. House Hacking Gives You Experience in Real Estate

Knowledge is one thing that no one can take from you. You gain knowledge and skills that can’t be taken away by deep diving into house hacking and understanding the ins and outs of property ownership, investments, and money management.

Every homeowner is a real estate investor. Even if they are a first time home-buyer. In fact, first-time home buyers are the most important group of investors.

First time home buyers are younger, smarter, understand technology, love video games, and are more efficient. Innovation in real estate and home buying will be fueled by new investors, and they will be the ones telling the stories of success in the future.

Millenials are always trying to invest in new trends. Just like the rise of esports because of easier access to technology. If you want to be an investor looking to capitalize in new trends, then check out this new Esports ETF.

Are you looking for Airbnb investment property, and don’t know where to start? Signup to Zumbly so you get more knowledge on your local market.

Related: 10 Best Real Estate Investor Websites in 2019

Questions You Need to Answer Before House Hacking

  1. Do you have a list of houses with a great home score?
  2. Do you have a list of ideal locations for your investment property?
  3. How are you going to finance the investment property?
  4. Is my credit score high enough to get a loan?
  5. Would you live in the investment property yourself?
  6. Are you ready to learn how to become a landlord?

Searching for the right Investment Property

Find the right investment property for house hacking is a lot of fun. Searching for houses is extremely exciting. but it’s always taken for granted. When conducting your house search, you want to keep a few things in mind, amongst the most important is asking yourself whether you can invest in your potential house.

In other words, will your house be able to potentially pay for itself? You can rest assured that our Zumbly Home Score will help you make the best, most effective and most efficient house search yet.

Our Home Score here at Zumbly generates a real-time scored that is based on over 500,000 calculations. Homes in each city are weighed and are scored against each other. We will discuss more about housing investing and how

Zumbly can help you find the most worth-it home, in our next section below, “Can You Invest.” What are you waiting for? Start searching!

Would You Live in the Airbnb Investment Property?

When it comes to buying the right house for house hacking, you want to make sure that the house is what it appears to be on the internet. When you have narrowed down your search, in terms of potential neighborhoods that you like or know are best to invest in, make a list of the houses that you want to take a closer look at.

When you find something that you particularly do not like in a specific house, make sure to ask yourself if it is an easily fixable and simple cosmetic issue. If this is the case, then you have to weigh the pros and the cons; is this cosmetic issue worth having me not buy this property? The answer is usually no, so it is something that you want to keep in mind when looking at houses and properties.

Do You Need a High Credit Score before House Hacking?

Before you begin your home search and homebuying process, is it a good idea to check your own credit. Most lenders see your FICO score, so make sure that you are using a FICO score. This will grant you the time that is necessary to work on further building your credit score if required. Even the slightest increase in your credit score can make a big difference for you in the long run.

Related: Mezzanine Loans – Everything You Need to Know

Have Proper Documentation Before Buying Your Airbnb Investment Property

If you are applying for a mortgage, the lender will ask you for several documentation. If you make sure to gather all of the necessary documentation ahead of time, you will surely be buying yourself time and expediting the process. This will help you to obtain your approval sooner. Below is a list of necessary documents that you will need when applying for a mortgage:

  • Tax Returns: Your last two years’ tax returns are necessary documents because your mortgage lender will want to obtain a full history of your current financial situation. Your lender will want to see that your annual income is consistent with your listed reported earnings, and that there are no especially large fluctuations from year to year. By singing a 4506-T Form, you will grant your lender the permission to request a copy of your tax returns from the IRS.
  • Credit History: Your credit history report is a necessary document. It is needed for your lender to asses you as a borrower. In order to do this, your lender will need your written or your verbal permission. If your report has blemishes, which might include a previous foreclosure or sale, they will need to be explained. As the borrower, you have to be prepared to write a statement, in which you explain any negative items that exist on your credit history report.
  • Photo ID: Your photo ID is a necessary document that you have to provide for security purposes. This is so that you can prove that you are exactly who you are claiming to be. Your driver’s license, or Social Security card are also acceptable.
  • Employment or Income Verification: This includes the documents of your last two years’ tax returns, W-2s, 1099s, and your last few paychecks.
  • Renting History: If you already own a home, lenders may request proof that you will be able to pay your mortgage on time. Documentation of your renting history may include a year’s worth of canceled rent checks, or documentation which shows that you have been able to pay your rent by the due date. If you do not have an extensive credit history, then your renting history is critical.

It is important to keep in mind that your lender may ask for additional documentation and information to what is provided on this list.

Hire an Inspector for Your Investment Property

Getting inspection should be an important part of your Airbnb investment property. After you have chosen your ideal investment property, you get a short inspection period, which typically lasts from three to five days.

During this time, you are given the opportunity to hire a professional housing inspector to conduct a thorough inspection of your new property. This is important because if there is something that seems off, you will be given the chance to resolve whatever it is that is of concern without having to face penalties for house hacking and having others live out of your house.

Most home inspections are standard, and include the inspection of structural elements. These structural are comprised of your houses’ foundation, floors, ceilints, roofs, and walls. Inspections will check for parallel vs horizontal cracks on your floors, will make sure that your house’s foundation appears to be secure, that your roof does not have any leaks, and history concerning fires in your house’s attic.

Your professional housing inspector will typically also conduct an exterior inspection. This exterior inspection includes the evaluation of landscaping, elevation, wall coverings, drainage, grading, fascia, sidewalks, fences, windows, doors, exterior receptacles, tims and lights.

If your house has an attic, this is typically inspected together with your roof, to evaluate your roof’s construction, the framing and the ventilation. This will cover questions such as the length of time in which the roof must be replaced, its average life expectancy, and the number of layers that it is composed of.

Appliances are also inspected during your housing inspection. This includes the close examination of your range and oven, any built-in microwaves, smoke detectors, garbage disposals, and your builtin dishwasher. Washers and dryers may be included in this inspection; however, it is important to make sure that these items are not the original owner’s personal property, and that he or she will not be taking the items with them.

Is House Hacking Right for You?

Feeling motivated? Great! House hacking and using Airbnb to live the way you want and deserve is a great way to live life to the fullest.

Just remember, before any decision is made with large sums of money, you need to do your research. Don’t worry. Research doesn’t have to be hard, nor do you have to be an expert. Zumbly will help you do research just like any other expert.

If you’re pumped like we are and want to do your research for the next house hack then we recommend you sign up to Zumbly.

Related: The 10 Best Real Estate Tech Startups in 2019

How to Start an Airbnb Business with 5 Easy Steps Using Zumbly

Are you curious on how to start your Airbnb business? We will go through step by step on what you need to do! The profitability of turning your home into a vacation rental has lead to a significant boom in the Airbnb Business. By default, many people have begun looking into obtaining property for the use of Airbnb.

However, not everyone has experience in this form of real estate, and it may often be difficult to figure out what sources to trust when you are trying to figure out what property to purchase.

To ease your process, Zumbly has built its website to simplify and streamline the process for anyone to make an informed decision before they buy a home to fit their lifestyle. Using Zumbly, you can make an informed decision in just 5 easy steps.

1. Sign Up For Zumbly

Zumbly Homepage

Signing up for Zumbly is quite easy. Simply, click sign up on the top right corner, and move to the next page. Here you have the option to sign up through your Facebook account or alternatively, fill out the information in the questionnaire.

Once you have signed up for your account, you will have the ability to mark your favorite properties so that you can come back to them with ease at a later time. You can also save your searches for a later time to further your convenience when researching properties.

Related: What is a Good Cap Rate for Rental Properties in 2019?

2. Find Airbnb investment property with Zumbly’s home score.

Rental Income Inspection

Through the Zumbly website, you can use the search engine to look through potential investment properties. When you are trying to figure out what kind of property you want to invest it, understanding the math and finance behind a decision may often be difficult for people.

If you have not gone to school or have had experience in the matter before, it may be particularly confusing to understand what is ideal for you to invest in. Zumbly has simplified the process for people by categorizing properties based on their level of investability.

Zumbly uses a scale from 0 to 10 to show users how good of an investment a given property is; however, Zumbly’s home score scale is not linear. The rating system works as such:

0 – 5: Fair investment value

5.1 – 7: Okay investment value

7.1 – 9.9: Good investment value

10: Excellent investment value

Even if you are well versed in the real estate market, Zumbly can still be incredibly helpful for you because Zumbly shows you the home score of short-term and long-term rentals. Regardless of whether you do or not understand the property investment, Zumbly can greatly assist you as it will help you filter out properties that may not fit your lifestyle.

One of the advantages of Zumbly is that you do not have to look through properties, slowly trying to figure out which properties are worth your time. Overall, the use of Zumbly can help you not miss out on the opportunity of purchasing the right home for your lifestyle.

 3. Find the funds to finance the property

Counting Coins

This will likely be the most difficult part among all the steps unless you have a very large amount of savings and a very good credit score. Chances are you are going to have to pull together a few investors to help with the investment.

Whatever your method of getting the money is, unless you are going to buy the property at its full value, you are probably going to get a loan through the bank.

This typically requires a 10%, up to 20% down payment on the building to receive the loan. Which means that in reality, the only out of pocket funds that are actually immediately required for the purchase is the money for the down payment that will allow you to receive the loan from the bank.

The good news is that no matter what type of financing option you choose, Zumbly has a calculator that will let you know what your monthly payment will be as well as potential revenue.

Related: How Does Rent to Own Work in 2019?

4. Complete purchase of the property

Handshake

Generally speaking, when you are purchasing a property, you would have a real estate broker to do a lot of the work for you. Simply submit the property you wish to purchase to your real estate agent, and they will contact the agent of the selling party. From there they will help you secure your deal.

After the deal is closed, the house will go into escrow giving you 30 days to work out everything else that is needed or back out of the deal if you so choose. After escrow is over, the home is now yours and you can do with it as you see fit.

5. Start your Airbnb business by listing on Airbnb

If the entire purpose of your purchase was to invest in a short-term rental property, your final step is to simply list your property on Airbnb.

Through Airbnb, you can list your property with ease. Just go to their site, and find the button that prompts you to list your property. From there, fill out all the information that the site asks for.

A lot of this information is needed as the information that potential customers will see when deciding which property to rent from. This includes things like, location, base price, the size of the property, and the specific requirements that you want your renters to have to be allowed to rent your property.

You can also go as far as to require an interview of sorts so that you can personally choose who gets to stay at your property. This will help you reduce risks for damages and other things that may end up costing you extra money.

However, you should note, that the more requirements you place on people to be able to rent from you, the lower the number of potential customers.

Related: 10 Best Real Estate Investor Websites in 2019

What you need to know before you start your Airbnb business.

1. When does Airbnb charge?

Alarm Clock

When a customer makes a reservation request, the payment information is taken by Airbnb. Once the host accepts the request, if the reservation is booked through the “Instant Book function,” Airbnb will charge the customer the money required for the rental.

Regardless of how far in advance the purchase is made, Airbnb will hold the payment until 24 hours after the guests’ check-in. This allows the buyer and seller to make sure everything on both sides is as expected (such as the number of guests visiting, the number of bedrooms stated, or overall cleanliness of the property).

If you have a particularly expensive property, you may want to require a security deposit for your guests before they are allowed to stay. If this is the case, the security deposit must be charged to the guests through a successful claim within 14 days of their checkout.

If the guests book a reservation for a time period greater than or equal to 28 nights, the first month down payment will be charged as the reservation is confirmed. After that, the nights will be charged on a monthly basis.

2. How much does Airbnb charge?

Cash

Generally speaking, hosts are charged a 3% service fee for any rental that goes through Airbnb. However, depending on the location of your property, the service fee may be a bit higher. Also, if the host has a “Super Strict” cancellation policy, the service fee may also be raised.

This service fee is automatically deducted from your payment when Airbnb gives you your payout for a rental. If you are hosting experiences as well, the payout for the experiences will be done separately.

The service fee for experiences are generally 20% of the price of the experience and is automatically deducted from the payout to the host; however, if the experience is one for a non-profit organization, the service fee may be waived, allowing you to keep all your proceeds.

3. What is a Superhost on Airbnb?

Superhost

One of the best ways for you to show customers that you are a reliable host is through gaining the title of Superhost. Superhosts are experienced hosts who are exemplary in their work and are the ideal type of hosts that other hosts should strive to be like.

Once you have achieved the Superhost status, your properties that are listed through Airbnb will receive a badge indicating the reliability of your properties. After receiving this status, Airbnb will check up on you roughly four times a year (on a quarterly system) to make sure that you are in fact keeping up with the diligence that earned you your status.

To maintain an account with good standing and meet a list of requirements. These factors of your performance are measured over the past 365 days from any given point in time. The requirements that are required for you to get the Superhost status are as follows:

  1. You must have at least 10 trips booked and executed through your property; alternatively, successfully complete 3 long term reservations that total to a minimum of 100 nights.
  2. Have and maintain a review rate of at least 50%. The review rate is the percentage of guests that leave a review on your property after they have checked out of their stay.
  3. You must maintain a response rate of 90% or higher. The response rate refers to the consistency and speed in which you respond to a potential guest’s inquiry of any given rental.
  4. You must have zero cancellations. This is pretty straightforward, as canceling on guests can be rather inconvenient for them and is largely frowned upon; however, there are exceptions that may allow some grace if you have canceled on a guest. These exceptions are highlighted under the “Extenuating Circumstances Policy.”
  5. Lastly, you must maintain an overall rating of 4.8 or above. After each visit, guests can rate their stay at your property on a 5-star system. Based on this system, you must simply have an average rate of 4.8 stars overall.

Once you have fulfilled the requirements for the time period that is required, there is no necessity to apply to become a Superhost. If the requirements are met on the quarterly assessment date, you will be qualified for the Superhost status. Airbnb will then notify you of your Superhost status at the end of each assessment period (typically 10 days after the assessment is dated to begin).

4. How much can you make with Airbnb?

Dollar Sign

There is nearly no limit to how much you can make on Airbnb. The amount you make, however, is going to be a function of how many properties you have listed, their price, and the percentage of days that your property is being rented out.

The New York Times, explains that there are landowners who would typically rent out their property for about $2000 a month; however, switching to Airbnb allowed them to charge $150 a night.

This means that if they can rent out the same place for $4500 a month as long as they rent out the property through Airbnb. So, you only need to rent out your property through Airbnb for about 44% of the time in which you would normally rent out to a regular apartment tenant to make the same amount of money.

Not only do you have to rent out your property for less time, but it is also much easier to find a customer through Airbnb as potential tenants have very easy access to seeing your property. Overall, this makes the potential for making money much greater when renting through Airbnb rather from traditional methods of renting.

Piggy Bank
To sum this all up, if you are interested in increasing the potential amount of money you may make in property investments, this guide may come in very handy. Sign up for Zumbly and use it to find the ideal property for you to invest in.

Instead of posting the property up for rent as either a house or apartment, use Airbnb. From Airbnb you can list any of your buildings having whatever restrictions you would like on guests, and the price in which you want them to pay per night they decide to stay.

The amount of money that you would make per night will generally aggregate to a larger sum of money being obtained than if you were to simply rent out the building through a standard rental method.

Chances are you will not have a 100% occupancy rate, but this issue will be a hedge by the fact that you can basically charge more than double the nightly value as you would if you had rented the property out by the month.

Furthermore, Airbnb makes it incredibly easy for you to connect with your customers, and if you do so in an ideal manner, you can achieve the Superhost status, allowing you to attract customers at an even higher

Related: House Hacking: Live for Free With an Airbnb Investment Property