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  • Writer's pictureMichael T. Berger, MBA

Pro Tip #1 - Boost Your Airbnb Profitability

Welcome to a new series in our never-ending endeavor to bring you quality content! We have met with incredible success with our other information campaigns such as the "Dream A Little Dream" and "History Engaged" and you can expect more great content with those down the road...However, today, I want to introduce you to what we hope will be an incredibly helpful regular blog simply called "Pro Tips"!

We have scheduled a number of great topics such as an introduction to 1031-Exchanges, why real estate makes a great investment, and more...Today, let's take a few minutes to explore some different ways that could increase the profitability of your Airbnb (if you have one) - If you don't, it just might be time to call Gina Candelario and talk about how it may fit your portfolio.

Whether you are an experienced real estate agent or someone beginning their career in the short-term rental world, all investors can look to improve their Airbnb profitability rather quickly with some simple tweaks to what you are already doing. These are tips and tricks Airbnb owners can use to increase their return on investment and their profits on their investment properties. This article will explore all of these tips and tricks to help investors improve their Airbnb profitability in 2022 and going into 2023.

What is the Average Airbnb Profit?

It is hard to determine the average Airbnb profit or monthly income, as this number will fluctuate depending on the location of the property, the size of the property, and the style of the property. Additionally, there are other factors that can impact an investor’s monthly Airbnb income such as property tax, maintenance, and repairs that could come out of the income cost. An average Airbnb profitability is difficult to determine, but on average, investors make around $950 a month on an Airbnb property.

Look for a Property in a Popular Destination

One of the best ways to help increase your Airbnb profitability is by locating a property in a desirable location. Whether this location is desirable because it is a tourist location or just heavily populated, any popular destination will ensure a higher rental income and occupancy rate.

Before purchasing any property though, make sure that city and states guidelines allow Airbnb properties or short-term rental properties. Some larger tourist cities do not offer short-term rentals. Purchasing a property in one of these places before checking the rules of that city would be a bad investment and cause you to lose a lot of investment money. Always check a city's rules and regulations before purchasing an Airbnb property.

Advertise your Property in both the Peak Seasons and Off Seasons

Depending on the location of your property, there may be seasons in which it is much more profitable and desired than other seasons. Some investors may let this impact their decision to purchase a property in that area. Although there might be more desirable for your Airbnb in a certain season, that doesn’t mean people are not looking to rent it year-round.

You can advertise your property year-round and offer discounts in the off-season. Even though people then would be renting the Airbnb at a discount, you still can generate a profit and increase your Airbnb profitability. Renting your AirBNB at a discount is better than not having it rented out at all. Never let the location of an Airbnb property completely impact your decision to purchase it or not, always do your research as to how you can advertise your Airbnb year-round.

Accommodate More People in your Listings

When you are listing out your Airbnb property an easy way to make your Airbnb more profitable is by accommodating more people in your property. Even if your property only has a certain amount of bedrooms and you only think it can fit a certain amount of people, there are always ways to increase your occupancy. Take a search around the property and see what area could be transformed into a sleeping arrangement. Maybe a sleep sofa or pull-out couch could be added to a living room or an office area transformed into another bedroom.

Any way you can increase your occupancy can make your Airbnb more profitable. When people are looking through AirBNB properties to rent, they type in how many people they will be traveling with. Even if your property is big enough to fit a lot of people, but it’s listed only as 3 or 4 occupants, that means your listing isn’t even reaching potential renters. Updating your Airbnb to accommodate more people and adding sleeping arrangements can get your property to reach even more people, and produce an even higher profit.

Add Amenities to your Property

Updating your property and adding amenities that make your Airbnb stand out from the others in the area can help increase your Airbnb profitability. Certain features such as a pool or a hot tub can make your property more desirable to people looking to rent. Even simple things such as providing breakfast can increase the number of people interested in your listing. There are always amenities you can add to your property, big and small, that can have huge increases in your Airbnb profitability.

Help Other Investors Manage Their Listings

Another easy way to increase Airbnb profitability is to be a co-host on other investors’ listings. Although this option may be a little more work on your end, all co-hosts receive a commission on every listing. If you’re in an area in which Airbnb properties are very popular, it is likely other investors would be looking for co-hosts to help them manage the property. A good way to see if other investors are in need of a co-host is to join Facebook groups about real estate investing or reach out to other investors in the area you are friendly with. Becoming a co-host is both a great way to help increase your Airbnb profitability, and increase your real estate network in the area.

In Closing

There are many ways investors can increase their Airbnb profitability in the 2022 real estate market. Whether it be adding amenities to your property, increasing occupancy, or purchasing a short-term rental property in a popular city or location, there are plenty of ways one can increase Airbnb profitability this 2022. If you are looking in San Antonio or anywhere throughout the United States, Gina Candelario can help you with your search or can connect you with a trusted advisor in any community - Give Gina a call at 210.744.8265.

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