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Short-Term Versus Long-Term Rentals – What’s Better?

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Many people actively earn a decent passive income, with some making up to 30% more profit, by renting out their investment properties and holiday homes on short-term let platforms like Airbnb. However, before you rush to upload a listing, consider carefully the pros and cons of both short-term and long-term rentals.

pink door building entrance

Short-term rentals: The pros

Earning Higher Profits – Recent statistics reveal that short-term lets can secure homeowners profits 60% higher than those from long-term lets. For instance, a property earning £1,000 as a long-term let could potentially triple its earnings as a short-term let. Checking nightly rates on platforms like Airbnb quickly shows the significant financial gains available.

Enjoying Diverse Interactions – If you love meeting people from all over the world, you’ll find great value in short-term letting. It offers the chance to meet a variety of interesting guests, sharing experiences that can greatly enrich your life.

Experiencing Greater Flexibility – As the owner of a short-term let, you control when and how long you rent out your space. Should your circumstances change, you have the option to remove the listing or move into the property yourself. For example, if you want to use your Airbnb for a family holiday during the summer, you can easily block out those dates on your calendar. This level of flexibility is unattainable with long-term letting.

Short-term rentals: The cons

Staying On Call – When renting your place as a short let, you must be available around the clock to meet guests and respond to their messages. Listing your property on websites like Airbnb involves handling numerous emails and guest queries, where delayed responses can negatively affect your ratings and visibility on the site.

Frequent Cleaning – New guests arriving weekly means you’ll be doing a lot of dusting, vacuuming, and general cleaning, not to mention regularly washing towels and bed linen. If you dislike household chores, consider hiring professionals, but remember to set an appropriate cleaning fee to cover these costs.

Building Trust with Strangers – Trusting strangers with your space can be more challenging than with a long-term tenant who has undergone thorough reference checks. While platforms like Airbnb generally maintain a high level of trust between guests and hosts, as an Airbnb host, you must be comfortable with welcoming strangers into your home.

Engaging in Marketing – Due to the high turnover of guests, short-term lets require ongoing promotion. You’ll need to keep your listing visible on platforms like HomeAway and Airbnb and use other online marketing and social media tools to attract guests.

Navigating Legal Regulations – In some areas, like London, regulations restrict property owners from renting their places as short lets for more than 90 days a year. Always verify local regulations to avoid fines or legal issues when choosing to rent out your property as a short let.

Long-term rentals: The pros

Long-Term Let

Enjoying Peace of Mind – Hosting long-term tenants means you don’t have to constantly market your property. As a property owner, you can relax knowing your property will be occupied for an extended period, requiring much less effort from you compared to managing a short-term let.

Securing Guaranteed Income – Although short-term lets might offer higher nightly rates, they don’t guarantee maximum occupancy. With long-term tenants, you secure a steady income that is locked in for the duration of the rental agreement.

Benefiting from Invested Tenants – Long-term tenants tend to take better care of your property, knowing they will live there for at least six months. Most of them strive to maintain the property to a high standard, which is a significant advantage for you as the owner.

Long-term rentals: The cons

Dealing with Being Locked In – Life often presents unexpected twists and turns. Being bound to a 12-month contract with a tenant may not be ideal if your circumstances change. Long-term lets limit your ability to adjust occupancy plans or invite friends to stay in your rental during special occasions like Christmas, leading to a lack of flexibility that many owners find challenging.

Relinquishing Control – In a short-term rental, you have the freedom to enter the property after guests depart and manage maintenance and cleaning as you see fit. However, with long-term tenants, you surrender this control. You become dependent on the tenants for the care and maintenance of your property, which can be a significant concern.

Calculate Your Potential Short-Term Rental Income

After considering the pros and cons of short-term and long-term rentals, you can now make an informed choice about what’s best for your property. Consider using our free online calculator to estimate your property’s income potential as a short-term let before making a decision. You may find the amount you can charge per night surprising. For advice about your earning potential, contact Keey. We offer assistance in managing the hassles of running a short-term let, allowing you to enjoy a steady income with ease.

What Are the Best Property Investment Strategies in the UK?

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The world of property investment in the United Kingdom offers a myriad of opportunities for both seasoned investors and newcomers. However, navigating this dynamic market requires a well-informed approach that aligns with UK property laws and regulations. In this guide, we’ll explore some of the best property investment strategies tailored specifically to the UK property market.

house and money

1. Buy-to-Let Investments:

Buy-to-let investments have been a staple of the UK property market for years. This strategy involves purchasing a property with the intent of renting it out, generating a consistent rental income, and potentially benefiting from long-term capital appreciation.

Key considerations for buy-to-let investors include:

  • Researching high-demand rental areas.
  • Complying with UK landlord regulations, including licensing and safety standards.
  • Calculating financial aspects, such as maintenance costs and property management fees.

2. HMO (House in Multiple Occupation) Investments:

House in Multiple Occupation (HMO) investments involve renting individual rooms within a property to multiple tenants. This strategy can yield higher rental income compared to traditional buy-to-let investments, making it an attractive option for investors.

However, HMO investments come with specific legal requirements in the UK, including:

  • Meeting HMO licensing standards.
  • Ensuring tenant safety and property compliance.
  • Staying informed about local authority regulations and restrictions.

3. Property Development:

Property development entails purchasing properties for the purpose of refurbishing, renovating, or extending them before selling for a profit. In the UK, property development remains a viable strategy, particularly in areas with high demand for modernized or expanded properties.

Key considerations for property developers include:

  • Conducting thorough market research to identify promising locations.
  • Navigating planning permissions and adhering to building regulations.
  • Efficiently managing project budgets and timelines.

4. Commercial Property Investments:

Commercial properties, including offices, retail spaces, and industrial units, offer diversification opportunities for investors in the UK. This strategy provides potential for stable rental income and capital appreciation.

Factors to consider when investing in commercial properties include:

  • Evaluating location and market demand.
  • Understanding lease agreements and tenant dynamics.
  • Staying informed about property maintenance and management.

5. Property Crowdfunding:

Property crowdfunding platforms have gained traction in the UK, allowing investors to pool resources for property investments. This approach enables investors to access the property market with relatively lower capital compared to traditional purchases.

Investors should exercise due diligence when selecting crowdfunding platforms to ensure compliance with UK financial regulations and transparency.

Conclusion:

The United Kingdom’s property market is a dynamic arena that offers a multitude of investment opportunities. Choosing the best property investment strategy in the UK hinges on a deep understanding of the market, a meticulous approach to compliance with UK property laws, and ongoing research.

Before making any investment decisions, seeking professional advice and staying up-to-date with the latest developments in the UK property market are essential. With the right strategies and a strong grasp of UK property regulations, investors can embark on a rewarding journey in the world of property investment in the UK.

If you need any further help with anything property related, feel free to contact us here at Keey!  

Transforming UK Property Investment: Count and Keey’s Game-Changing Partnership

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Count and Keey are teaming up to change property investment. They’re experts in the industry, and they want to make it easier for people and businesses to invest in real estate.

This partnership means you’ll have a simpler and more transparent way to invest in property. You can get the latest information, make more money, and save lots of cash. It’s a big deal and will shake up property investment in the UK!

partners shaking hands

Simplifying Property Investment

Count, a leading accounting company in the UK specializes in providing bookkeeping, accounting, and tax services tailored for small businesses and sole traders. When clients choose to work with Count, they are paired with their dedicated ICAEW ACA Chartered Accountant. Count assists clients with various accounting matters, allowing them to concentrate on their businesses, while the firm handles their financial needs.

Their services make property management easier as having a dedicated accountant, can streamline financial processes, ensure compliance, and provide valuable insights into property-related finances. This, in turn, simplifies property management tasks, reduces administrative burdens, and allows property owners and managers to focus more on the core aspects of managing their properties efficiently and profitably.

Effortless Property Management

Keey, a top property management platform, helps property owners maximize their rental income and make property management easier. They use advanced technology and a network of property experts to manage properties without any trouble.

Property owners can rely on experienced local managers who take care of daily tasks, tenant screening, maintenance, and rent collection. They get real-time financial reports to see how their property is doing, giving them more control and better decisions.

Unmatched Transparency and Control

Count and Keey are all about giving investors complete transparency and control over their property investments. Count streamlines legal processes, making sure investors understand the legal side of owning property.

Keey’s platform offers detailed financial reports and analytics, so investors can track income, expenses, and overall performance. This transparency helps investors make smart choices and stay confident about their investments.

Access to Expert Help

The partnership between Count and Keey gives investors access to property investment and management experts. With their combined resources, investors get support from legal, financial, and property management pros.

This support is especially useful for new or inexperienced investors who want to start with confidence. Expert guidance helps investors handle complexities, make the most of their investments, and reach their financial goals.

In Conclusion

Count and Keey’s partnership is a big step forward in property investment. They make processes smoother, improve transparency, and provide expert property management. Investors can now find, buy, and make the most of their investments with ease.

This partnership shows their commitment to innovation and customer satisfaction. Count and Keey help investors make better choices and succeed in the real estate world.

As these two companies work together, the future of property investment looks brighter. Count and Keey are leading the way for a new era of property investment in the UK, where convenience, transparency, and profit come together to benefit investors and redefine success in the industry.

How to Start an Airbnb Business?

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gray sofa

Airbnb, a blend of “air mattress” and “breakfast”, began in 2008 when its founders rented out their San Francisco loft. Fast-forward, and it’s a global phenomenon, transforming the way people travel. The allure of Airbnb lies in its dual benefit: travelers get a more authentic, localized experience, and hosts earn by renting out their spaces. Essentially, the Airbnb business model taps into the shared economy, allowing homeowners to make their properties, whether an entire house, a single room, or unique spaces, available for short-term rentals. If you’re looking at turning your vacant space into a potential income source or dreaming of starting a full-fledged rental business, here’s your step-by-step guide to launching a successful Airbnb venture.

How to Start an Airbnb Business

1. Understand the Airbnb Model:

Before diving in, familiarize yourself with how Airbnb operates:

2. Research Market Demand:

Examine the demand for Airbnb in your area. Are you in a tourist hotspot? A quiet suburb? A business district? Knowing your potential audience helps tailor your offerings. Use tools like AirDNA to gain insights into occupancy rates, seasonal demands, and competitors’ prices in your area.

Read Next: What To Know Before Investing in a Property for Airbnb

3. Evaluate Legal and Regulatory Implications:

Regulations for short-term rentals vary by city and country.

  • Some places require hosts to possess licenses or permits.
  • Others have restrictions on the type of property that can be rented out.
  • Understand local tax obligations, including transient occupancy taxes. Before listing, ensure you’re compliant with local laws to avoid potential legal pitfalls.

4. Ready Your Property:

a. Repairs & Renovations: Address any pending repairs. Consider minor renovations to make the space more appealing.

b. Furnishing: Ensure the space is furnished aptly. Basics include a comfortable bed, clean bathroom, functional kitchen, and reliable Wi-Fi.

c. Safety: Install smoke alarms, carbon monoxide detectors, and ensure there are clear emergency exits.

5. Craft an Inviting Listing:

a. Photography: High-quality photos are crucial. If possible, invest in a professional shoot.

b. Descriptive Title & Summary: Create a catchy title and a detailed summary highlighting what makes your space unique.

c. Amenities & House Rules: Clearly mention amenities you offer and set clear house rules. This ensures guests know what to expect.

6. Pricing Strategy:

a. Competitive Pricing: Starting with a slightly lower price can attract your first guests and crucial initial reviews.

b. Dynamic Pricing: Consider tools like Wheelhouse or PriceLabs, which adjust prices based on demand, seasonality, and local events.

c. Understand Airbnb’s Fee Structure: Remember, Airbnb charges a 3% host fee and a variable guest service fee.

Read More: What Are the 6 Smart Pricing Strategies Every Airbnb Host Should Know?

7. Master the Art of Communication:

Always be prompt, polite, and clear in your communication with potential guests. Address their queries and concerns. Once booked, send a welcome message with essential details about check-in and your space.

8. Focus on Guest Experience:

a. Check-in Process: Whether it’s a lockbox, digital locks, or in-person, ensure a smooth check-in experience.

b. Welcome Kit: Consider a welcome kit with local maps, transport details, nearby attractions, and a list of recommended eateries.

c. Personal Touches: Small gestures, like a handwritten note or a basket of snacks, can elevate the guest experience.

9. Manage Operations Efficiently:

a. Cleaning: Ensure thorough cleaning between stays. Consider professional cleaning services.

b. Restocking: Regularly check and restock essential supplies like toiletries, coffee, tea, and other basics.

c. Maintenance: Regularly inspect for wear and tear, making necessary repairs or replacements.

Read More: How to Handle Airbnb Guest Damages

10. Collect and Act on Feedback:

a. Reviews: Encourage guests to leave reviews. Positive reviews enhance your listing’s appeal.

b. Constructive Feedback: Use any constructive criticism to improve offerings and address valid concerns.

c. Engage with Guests: Respond to reviews, thanking guests for positive feedback, and addressing any negative feedback professionally.

Conclusion:

Starting an Airbnb business can be both exciting and daunting. However, with meticulous planning, a focus on guest experience, and adaptability to feedback, it can evolve into a rewarding venture. Remember, at the heart of every successful Airbnb business is the spirit of hospitality. By offering guests a unique, comfortable, and memorable stay, you not only earn income but also enrich the global travel community by providing a home away from home.

How to Build a Property Portfolio?

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The world of real estate is vast and filled with opportunities. Whether you’re a seasoned investor or a newbie, building a property portfolio can be a game-changer. But where do you start? Navigating the complexities can seem daunting, but with the right guidance, it becomes a rewarding journey. Let’s set you on the path to success!

1. Understand the Basics

Before you jump into property investment, it’s crucial to grasp the basics. A property portfolio is essentially a collection of property investments owned by an individual or company. The goal? To generate a steady cash flow and, over time, appreciate in value.

2. Start with Clear Objectives

Every successful journey begins with a clear destination in mind. Before you invest a penny, determine what you want to achieve with your property portfolio. Are you looking for long-term wealth, a steady monthly income, or perhaps both? Setting clear objectives will guide your investment decisions and keep you on track.

Read Next: 5 Simple Tips to Jumpstart Your Property Business

3. Do Your Homework

Research is paramount in property investment. Delve into market trends, familiarize yourself with property values across various regions, and monitor rental demands. Grasping rental demand, tenant preferences, and the nuances of diversification is essential. These elements significantly influence your investment choices.

4. Seek Expert Advice

While it’s essential to do your research, consulting with experts can provide invaluable insights. Property consultants, financial advisors, and even seasoned investors can offer advice, share their experiences, and help you avoid common pitfalls.

5. Start Small

Rome wasn’t built in a day, and neither is a robust property portfolio. It might be tempting to dive in headfirst, but starting small allows you to learn the ropes without taking on too much risk. As you gain experience and confidence, you can gradually expand your portfolio.

6. Diversify Your Investments

Don’t put all your eggs in one basket. Diversifying your investments across different property types and locations can help mitigate risks. For instance, if one property type or area experiences a downturn, your other investments can help balance things out.

7. Understand Financing Options

Having a clear financing strategy is essential. Whether you’re utilizing your savings, opting for a mortgage, or collaborating with fellow investors, comprehending your financing options is pivotal. This understanding will shape how you procure properties and navigate your property investment journey.

8. Consider the Long-Term

Property investment isn’t a get-rich-quick scheme. It requires patience, dedication, and a long-term vision. Think about where you want to be in 5, 10, or even 20 years. This long-term perspective will guide your decisions and help you build a sustainable and profitable portfolio.

Read Next: Why Sustainable Real Estate is the Future

9. Stay Updated

The real estate market is dynamic and ever-changing. Stay updated with the latest trends, market shifts, and economic factors. Regularly review your portfolio’s performance and be ready to adapt to changing conditions.

10. Have an Exit Strategy

While it’s essential to think long-term, having an exit strategy is equally crucial. Whether it’s selling a property after a certain period or when it reaches a specific value, an exit strategy ensures you have a clear plan in place and can maximize your returns.

Conclusion

Building a property portfolio is an exciting journey filled with opportunities and challenges. By following the tips and strategies mentioned above, you can navigate the world of property investment with confidence. Remember, every investor’s journey is unique. So, take the time to understand your goals, do your research, and most importantly, enjoy the process!

Boosting Your Airbnb Income: 5 Essential Tips for 2023

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Considering a side hustle with that extra space or holiday home? Airbnb, the premier platform for short-term rentals, might just be your ticket. With its vast reach across countless cities globally, Airbnb presents homeowners with a golden chance to earn by hosting travelers from diverse backgrounds. But, the pressing question remains: What’s the actual earning potential on Airbnb?

Your earnings hinge on multiple elements, such as your property’s location, its type, your pricing model, and your dedication to offering an unparalleled guest experience. Ready to delve deeper into the revenue prospects of Airbnb? Let’s get started.

hands roof over cash

Deciphering Airbnb Earnings

  1. Dynamic Pricing: Use market demand and supply data to tweak your rates, ensuring maximum occupancy and revenue. Consider automated dynamic pricing tools for efficiency.
  2. Elevate Guest Experience: Stellar guest experiences can lead to glowing reviews and repeat bookings. Think about adding amenities like welcome kits, premium beddings, or curated local guides.
  3. Listing Upgrades: Enhance your listing by adding more rooms or features, allowing you to cater to more guests and command better rates. Think about value-added services like airport transfers or grocery deliveries.
  4. Harness Social Media: Platforms like Instagram, Facebook, and Twitter can help you tap into a broader audience and secure more reservations. Consider setting up a dedicated account for your property, showcasing its charm and the allure of the locale.
  5. Local Collaborations: Forge partnerships with nearby businesses, such as eateries, tour agencies, or event planners. This can provide guests with exclusive offers, enriching their stay and boosting your income.

The income an Airbnb host can amass in the UK is influenced by various aspects: property location, its type, local demand for such rentals, the host’s pricing approach, and competition from nearby listings.

It’s crucial to remember that Airbnb deducts a commission from each reservation, which fluctuates based on factors like the host’s cancellation policy. This fee can range from approximately 3% to 15% of the booking’s total value.

Given these variables, the earning potential for an Airbnb property in the UK can differ significantly. To maximize returns, hosts should study their local market, refine their pricing and promotional tactics, and adhere to all local regulations and tax obligations.

Projecting Your Annual Airbnb Income

To gauge your yearly Airbnb income, consider the following steps:

  • Market Analysis: Examine similar local listings to understand potential pricing and occupancy rates.
  • Estimate Occupancy: Calculate the nights you anticipate bookings each month and extrapolate for the year.
  • Determine Nightly Rate: Multiply your nightly charge by the estimated annual occupancy to gauge monthly earnings.
  • Account for Airbnb Charges: Factor in Airbnb’s service and host fees when estimating revenue.
  • Seasonal Adjustments: Depending on your property’s locale, demand might ebb and flow seasonally. Incorporate these variations in your revenue predictions.
  • Review Past Earnings: If you’ve previously listed on Airbnb, your past performance can guide future revenue expectations. This data is accessible in your Airbnb dashboard.

Strategies to Amplify Airbnb Earnings

Here are five actionable strategies to elevate your Airbnb income:

  1. Optimize Your Listing: Ensure your listing stands out with high-quality photos and a compelling description. Showcase unique features of your space and highlight the amenities you offer. Regularly updating your listing can also make it appear fresh and attractive to potential guests.
  2. Implement Dynamic Pricing: Adjust your pricing based on demand, local events, seasonality, and competitor rates. Using tools or software that offer dynamic pricing can help automate this process and ensure you’re always competitively priced while maximizing revenue.
  3. Foster Guest Relations: Exceptional guest experiences lead to positive reviews, which in turn can boost your listing’s visibility and attract more bookings. Always be responsive, offer local tips, and consider going the extra mile with personalized touches or surprises.
  4. Promote Outside of Airbnb: Use social media, personal websites, or local advertising to attract more guests. Collaborate with local businesses or events to offer package deals or special discounts to their customers.
  5. Invest in Value-Added Services: Consider offering additional services that guests might be willing to pay for, such as guided tours, cooking classes, or spa services. This not only enhances the guest experience but also provides an additional revenue stream.

In Conclusion

Airbnb offers a dynamic revenue stream for those keen on leveraging their property. By fine-tuning your pricing, enhancing guest experiences, upgrading your listing, tapping into social media, and collaborating locally, you can optimize your earnings. With the sharing economy’s trajectory only pointing upwards, the potential for Airbnb hosts is boundless. Whether you’re an Airbnb veteran or a newbie, there’s no better time to capitalize on this platform. Dive in, list your space, and tap into the lucrative realm of Airbnb earnings!

Maximizing Your Short-Term Rental Success with Keey

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In the fast-paced world of short-term rentals, maximizing your success as a host requires strategic planning and expert guidance. With Keey as your trusted Airbnb management partner, you can unlock the full potential of your short-term rental property. From enhancing the guest experience to optimizing your rental income, Keey provides the tools and expertise to help you thrive in the competitive vacation rental market.

Understanding the Short-Term Rental Landscape

The growing demand for short-term rentals and the benefits of partnering with Keey
Advantages of professional property management and the potential for higher rental income

Elevating the Guest Experience

Proven strategies to enhance guest satisfaction, from seamless check-ins to personalized recommendations
Importance of exceptional customer service and creating a memorable stay for your guests

Maximizing Rental Income

Effective pricing strategies, dynamic pricing, and optimizing occupancy rates for increased profitability
Role of market trends, data-driven insights, and Keey’s OccuMax pricing algorithm

Streamlining Operations for Efficiency

Tips and best practices for efficient property management, including housekeeping, maintenance, and communication
Benefits of leveraging Keey’s technology and operational support

Harnessing the Power of Property Marketing

Unveiling marketing strategies to boost your property’s visibility and attract more guests
Importance of compelling listing descriptions, stunning visuals, and effective promotion

Continuous Improvement and Adaptation

Staying updated with industry trends, emerging technologies, and guest preferences
Adapting and evolving to maintain a competitive edge

With Keey by your side, you can unlock the full potential of your short-term rental property. Prioritize guest satisfaction, optimize rental income, and streamline operations to maximize your success as a host. Trust in Keey’s expertise, comprehensive support, and advanced technology to navigate the ever-evolving world of short-term rentals.

The Impact of Seasonality on Airbnb Rental Income

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apartment with a sea view

Seasonality plays a significant role in the hospitality industry, and Airbnb rentals are no exception. Understanding the impact of seasonality on rental income is crucial for hosts looking to maximize earnings.

chairs and sea view

Understanding Seasonality

Seasonality in Airbnb rentals refers to fluctuations in demand and pricing throughout the year due to various factors. These can include holidays, local events, and even weather patterns. For instance, a beachfront property may see increased demand during the summer, while a cabin in a ski resort may be more popular in the winter.

Impact on Rental Income

Seasonality can have a profound impact on Airbnb rental income. During peak seasons, increased demand can lead to higher occupancy rates and the opportunity to charge higher prices. However, off-peak periods may present challenges due to reduced bookings, potentially leading to lower rental income.

Strategies to Manage Seasonality

Fortunately, there are strategies that hosts can employ to manage the impact of seasonality. Dynamic pricing, for example, involves adjusting prices based on demand. This means charging higher prices during peak seasons and offering discounts during slower
periods to attract guests.

static and dynamic pricing charts

Targeted marketing can also be effective. This could involve promoting your property on social media during off-peak periods, or partnering with local businesses to offer special packages or experiences.

Offering seasonal amenities or experiences can also help. For example, providing beach gear in the summer or a cozy fireplace during the winter can make your property more appealing to guests.

Understanding and managing the impact of seasonality is crucial for Airbnb hosts. By analyzing booking data, identifying seasonal trends, and adjusting strategies accordingly, hosts can maximize their rental income throughout the year.

What To Know Before Investing in a Property for Airbnb

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With the rise of Airbnb’s coming into fruition lately; You may be interested in developing your own Airbnb. 2 million people stay at an Airbnb each night, a statistic that may surprise you. However, there are some key elements you should look out for when buying a property before you get started.  

This article will help you figure out what to look out for before buying one and whether your investment will work out well.  

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Choose your Airbnb wisely!  

Hidden Maintenance Fees 

Properties, whether for Airbnb purposes or not, will always have some sort of maintenance fees attached silently to them. Especially if the previous residents were evicted, as these are usually the reason they got evicted in the first place.  

It is important to manage these maintenance fees as you are planning to have residents move in and you want to have their utmost safety in mind.  

These maintenance fees may involve: 

  • Boiler repair 
  • Light repair 
  • Plug socket repair 
  • Electric box repair 

Each of these plays a crucial role in maximising how well your Airbnb runs. There is the chance that a property may have outstanding bills from previous tenants for electric or gas suppliers but rest assured; you do not need to pay these. These are registered to the previous tenant and a quick call-up will rectify this mistake. 

Learn about these hidden maintenance fees before buying the property, perhaps by a neighbour or the council themselves. This will lead to you knowing how much more money you need to spend on the property. 

Competition from Other Airbnb’s 

With the growing rise of Airbnb, there is no doubt that there will be other rentals in your area, especially if you have chosen a great spot to buy one. This can cause a rivalry between them in marketing. It can mean that if someone knows better marketing techniques than you, then they may attract more tenants.

Making sure that you are prepared to market your Airbnb and make it look as amazing as it can be is the key to an outstanding Airbnb. You may get some hosts that are nice to you, and some that may see you as a rival.  

It’s always a good idea to meet with these Airbnb hosts to learn about the area and see if there’s anyone who might cause trouble down the line. 

Read Now: Why Monitoring other Airbnb Hosts is Important 

Slow Days 

Before buying a property, you must be prepared for slow days in the least popular months. These are days where you may get little to no tenants which can make handling two properties very difficult for you and your wallet. 

Keeping a saving account specifically for your Airbnb’s slow days can help significantly with this inevitable effect.

Read Now: Strategies for a Successful Airbnb in the Slow Season 

Local Laws 

Local laws can affect your Airbnb in a good way or a bad way. Some local laws determine you can only rent out an Airbnb for a certain amount of time, or perhaps a monthly maintenance routine check is required. These will determine whether your Airbnb is suitable to stay open or not. 

Check with the local areas laws to find out these things. A quick call to the council will answer most of your questions.  

Property for Airbnb
Laws can differentiate between regions, so make sure you pay attention to them! 

Taxes and Insurance Fees 

Taxes and insurance fees are one of the least appealing aspects of property management. You would have to pay more taxes for owning two properties, so you must be prepared for this sudden surge in tax fees.  

Find out how much taxes would be by asking the estate agent; they will have this information for you.  

You may also have to pay more in maintenance fees, and insurance regarding damage or theft. If you have a great spot for an Airbnb then you will easily make a net profit, but a less popular location may leech your wallet and you may make little to no return.  

Decoration and Furniture 

Finally, you will pay for furniture and decoration for your property. Choosing colours that are not too vibrant but appealing can bring morale to your tenants and increase their opinion of your Airbnb.  

It can be quite daunting to draw up a furniture and décor plan for your Airbnb. The easiest way is to get a floor plan and imagine what you want each room to look like.  

Appealing furniture and paint are recommended but you could get some unique, cool items to put on shelves. Maybe some rare vinyl’s, figures, paintings or vases. Things that are intriguing create curiosity in your tenants.  

It won’t be too much to pay for furniture so get a basic plan, and slowly expand on the property. It may look dull at first but over time it will grow into a vibrant property that tells a story.  

Read Now: Top Tips: How To Promote your Airbnb 

What To Know Before Investing in a Property for Airbnb
Your Airbnb will grow into a home for your tenants!

 

Conclusion 

Your Airbnb property must be managed and planned before buying. If you jump straight into the deep end, then it may be too demanding and result in you losing the property.  

Hopefully, this article has helped you plan and figure out what needs to be planned before buying a property.  

If you have any further queries with Airbnb properties, then please contact us at Keey today! 

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