Investing in real estate is always a good idea if you are looking for things to do with your extra money. One of the best ways to maximize those savings is to invest in an Airbnb property. Airbnb is becoming far more popular with travelers than hotels since they are more like home. This means it is a great opportunity to take advantage and make some money. It can even become a full-time income.
That is if you do things correctly. There are a number of mistakes that people make when looking into buying some Tennessee real estate to convert into an Airbnb. These mistakes are costing people a lot of money and can even make it a poor investment. In this article, we will go over several of the mistakes to avoid so you can make the most out of your Airbnb property.
1 – You picked the wrong location
Not every location is going to be good for buying an Airbnb property. This is because every area has a certain need for the people that are there. For instance, in some suburban locations, there would be no reason for a tourist or business traveler to stay there. It would be too far from the sightseeing opportunities or restaurants to justify paying to stay there.
The same holds true for business travelers if they have to commute to get to the conference or meetings. The idea is that you have to make sure that the area corresponds with what the traveler will be looking for. If you get this wrong then you have no shot at ever making a profit on the property as an Airbnb. In this case, you should look into setting up a long-term rental.
2 – You don’t have the right property
Just as the location may not work for travelers, the type of accommodation also plays a big part in your success. If you have mainly backpackers that visit the area where you are looking to buy then you don’t want to buy a house. If there is an amusement park or it is an area where there are a lot of families that will be visiting then buying a studio apartment is not a good idea. Business travelers will have other needs as well.
Do some research into the types of travelers that the location will be supporting so you can get an idea of the best type of property to buy.
3 – Asking the wrong price
There is a price that will be too high that will scare off many prospective tenants. There is also the possibility of a price being too low and you not making enough of a profit for the investment to be worth it.
Make sure to figure out the average price for the area and type of property so you will get the exact right price that will encourage people to stay while also giving you enough of a profit that works.