Updated: Jul 12
There seems to have been a global shift of consciousness in terms of income building. Or, perhaps it is the realization on a larger scale that to live a comfortable life, you must have multiple streams of income. Effectively, conversations about wealth building and the best ways to accomplish that are at the forefront of the conversation.
Real estate has and will always be a sound investment that weathers the storm.
Are you a new investor learning how to invest in real estate? Are you looking to tap into real estate investment opportunities but do not quite have access to a substantial amount of capital? If your answer was 'yes' to one or both of those questions, I have some news for you.
There is still a way - Short term rentals.
Short-term rentals aren't new. But, they are a great approach in how to start investing in real estate.
In the 1950s, they were referred to as vacation rental homes - the alternative to a hotel stay.
Short-term rental platforms such as Airbnb have made it extremely popular and accessible by nearly anyone.
What's An Airbnb?
Airbnb is a short-term rental platform that allows everyday people to connect their property to other everyday people for an alternative home away from home experience. The unique thing about AirBnB, it is also a near-instant way for anyone to become a real estate investor.
There are reportedly around 5.6 million listings on Airbnb and over 150 million yearly stays and experiences in the active listings. Here is proof that short-term rental is a market, and there is a demand for more hosts.
Airbnb investment is relatively a low overhead way of entering into real estate investing. Considering, in most cases, the ability to start with what you have is why it is one of the most popular routes of investment. In addition to low overhead, here are a few other reasons:
It Provides Flexibility
Unlike typical long-term rental agreements, a short-term rental is precisely what it says, short. If you are a guest, they are perfect for overnight stays up to 3 months or so. Needs include exciting events such as weddings, family vacations, lovers' getaways, or short-term work opportunities.
For the host, the benefit of establishing a short-term rental with AirBnB is that you have flexibility. You have the flexibility to adjust your terms at your behest, remove them from the market when needed and return when ready.
There Is Minimal Upkeep.
While short-term rentals will have expected wear and tear over some time, there are benefits. Occasional breaks in-between guests allow the host to maintain the property in accordance and address any concerns immediately. A year and over, long-term rentals are accompanied by the rental's normal but continuous wear and tear, yielding the possibility of delayed discovery and approach.
Available Cash Flow
One of the primary reasons individuals seek out real investments is for the associated cash flow. It is important to point out different types of investments yield different types of cash flow. Example: A Real Estate Investment Trust (REIT) will earn while the investor's money is in the asset. However, typically, the actual return is not released until after the asset has been sold.
While the amount of return associated with your investment can vary based on listing price and location, Serving as a host on Airbnb yields monthly returns.
There are Tax Perks
Yep, there are perks to having an Airbnb listing. It is necessary to note that there may be available tax deductibles associated with your investment.
Eligible deductible fees include property taxes, insurance, and even the marketplace fees themselves. However, it is necessary to consult with your tax professional for accuracy and all available deductions.
Become An Airbnb Host
Becoming an Airbnb host is possibly one of the most accommodating ways to get into the short-term rental lane of real estate investing. Properties range from primary residences to converted garages and even a few unique properties that will make you feel like you are experiencing a stay in a whimsical land.
While it's overall simple to become a host, it would be wise to visit the site and check out a few listings. Taking time to research will give you a pretty good idea of comparable pricing, a captivating description, and, very importantly - the style of images that appear best on the listing. It is also essential to confirm if using a rental property, subletting is allowed for the property.
Are you ready to get started with your Airbnb Investment?
The Sirens Brand is all-inclusive in asset management in the luxury properties sector of vacation home rentals. We are more than property management. We focus our efforts strategically and entirely on asset management, general contracting, and property management of the short-term rental space.
We are as well, much more than that. In the Airbnb sector, The Sirens Brand is the link between you and your investment. We are invested in this sector of real estate investment because it is currently one of the most profitable avenues to take in the real estate investing game.
The Sirens Brand is invested in your Airbnb investment both literally and financially. The absolute best way to prepare yourself for returns on real estate investing is to educate yourself. We aim to inform our clients about the process of Airbnb investing entirely. We also lower the barrier of entry by providing underwriting for the capital of the investment.
Whether you have taken your first step in becoming an Airbnb host, allow us to connect you to a profitable investment tool and maximize your exposure and return on investment.
Contact us today to discuss a customized approach to connecting with an Airbnb investment opportunity and bringing your asset to its best.
Short term rentals aren't new
Airbnb New User earnings (top cities list screenshot)
Listings and Bookings trend (graph screenshot)
How to invest in real estate #Howtoinvestinrealestate
How to start investing in real estate* #Howtostartinvestinginrealestate
What's an Airbnb #WhatisanAirbnb
Become a host on Airbnb #BecomeahostonAirbnb
Airbnb investment #Airbnbinvestment