You’ve probably heard of Airbnb. Have you heard that people are buying investment properties for the sole purpose of renting them out on the site?

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You’ve probably heard of Airbnb and you may have even stayed in one before. It’s a great way for homeowners and investors to make some extra money, and a lot more buyers have been purchasing properties lately to use for this sole purpose.

Before you decide to go all in on Airbnb, here are a few things you should know about first:

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This is becoming an increasingly popular strategy.

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1. Have you picked a good location?

The first rule of real estate is location, location, location and it’s no different in this case. In order to be successful, the demand for lodging in the area must exist. It wouldn’t make sense to have an Airbnb property in a place that has little tourism. You want to be close to attractions and transportation. A good view certainly helps as well.

2. How much time and energy are you willing to invest?

Airbnb properties don’t rent themselves, just like hotels don’t run themselves. You are expected to provide a clean space and guests will expect certain things like clean towels, tourist info, and a way for them to reach you if they have any problems. Hosting can be difficult, so you can hire a service to remove some of the burden for you if you’d like. It’s not cheap, however.

3. Are you hosting your Airbnb by the book?

In places like New York and San Diego, they are cracking down on Airbnb properties because they are greatly affecting the hospitality industry. Laws and local regulations are always changing, so you need to make sure you are following all the rules and paying all the taxes you must in your area.

Renting out your place to Airbnb may not be a full-time business endeavor, but make no mistake, it requires effort and attention to detail. Consider that before buying a property for this sole purpose. If you have any questions for us about Airbnb properties or want to take a look at some promising ones on the market right now, give us a call or send us an email. We look forward to hearing from you soon.