Turning extra space into extra cash.
So, you pay a mortgage every month. So do a lot of people. But have you ever thought of what you could do with that mortgage payment other than pay the mortgage? Would you take more vacations? Splurge a bit more on eating out, on going to events? Would you save more for retirement? With a bit of extra space and an Airbnb listing, you can.
Sharing your home isn’t for everyone. Some people don’t like the idea of renting out a room in their home, or even renting out an in-law suite or basement level apartment. But this extra space can help contribute to, or even fully cover, your mortgage payment each month and leave you with extra cash in your pocket. That’s how we started here at Rabbu, actually. Our CEO Emir converted a tiny room above his detached garage into a small Airbnb and, well, the rest was history. If you have a bit of extra space and dreams of saving a bit more each month, you might want to turn your “home sweet home” into a “home sweet Airbnb”
Is your home the perfect Airbnb?
There’s money to be made in the Airbnb market for everyone. The demand for Airbnbs, or short-term stays, is already astronomical in many areas of the country and the demand just keeps on growing. Is the extra space in your home an underutilized money-making machine? Use this checklist to find out.
- Neighborhood regulations. While the demand for short-term stays are booming for consumers, many cities, counties, neighborhoods, and HOAs are working hard to regulate this industry. While regulations are popping up around the country, they aren’t necessarily deal-breakers. Many of these regulations require things like minimum night stays, something that can be easily incorporated into booking strategies on websites like Airbnb. In fact, throughout the course of the pandemic, the minimum night stay for properties managed by Rabbu has sky-rocketed to around 44 days, effortlessly meeting and exceeding the minimum night stay of 30 days enacted by many regulatory ordinances. Ideally, there would be no regulations for your home and your potential Airbnb, but so long as they are minor, it could still run successfully and make you extra cash.
- Neighborhood stats. Let’s talk about your neighborhood. What’s it like? What would make people visit? Is it a tourist spot? Or close to tasty food, lively nightlife, and a packed event calendar? Do people like to vacation where you live? What is there nearby that your guests can enjoy?
One of the top things we hear from guests for properties that we manage is that they love when their hosts give them local recommendations; it makes their stay more unique and memorable. Are there can’t miss cafes, restaurants, nightlife, ice cream shops, or other gems nearby? If there are, you can highlight those in your listing and in your guest recommendations and have an Airbnb hotspot on your hands.
- Proximity to an airport. Do you roll your eyes and sigh whenever you have to get to the airport for personal travel? If you do, others traveling to stay at your possible Airbnb will likely do the same.
While people have needs for Airbnbs just about anywhere, your property will look much more attractive to guests if it is close to an airport. Good public transit from the airport to your place or a quick and easy drive via rental car or Uber will make your spot an easy choice when booking.
- Biking and walking score. Around here, we like to say that bike-ability and walkability = Airbnb-ability. While this factor may differ for some markets, generally speaking, a property that is highly walkable or bikeable is very attractive to guests. Interested in what your biking and walking score is? Check it out here.
- Occupancy taxes, licensing fees, and other expenses or requirements: Certain markets or jurisdictions are subject to higher occupancy taxes which are charged to the guest, licensing fees, business license requirements, or other mandates. If it’s going to be costly to you to run an Airbnb business, or costly to the guest to book your Airbnb, it may be difficult to see the maximum returns due to high costs of business operations or low occupancy rates. Make sure to look into local tax laws when deciding the fate of your potential Airbnb. Need a second set of eyes? We can help.
Scope out the competition.
Still left wondering after reading our checklist? A good way to see if Airbnbs will thrive in your area is by searching nearby comparables. Take a look at our Insights tool to plug in your address and see how nearby comparable properties are performing, and make sure to chat with us if you need any help analyzing projected metrics or thinking about the possibilities of an Airbnb in general.