Three Reasons Why Airbnb’s Better Than Traditional Rental Properties

Ayvio Marketing

14 February 2020

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Income Streams

If you ask multiple people what their thoughts are on investment properties, you’re likely to receive many different answers. Some people believe that investment properties are inherently risky because there is quite a bit that can go wrong with them. For example, if the foundation has a crack in it, you’re liable to fix it! Other people consider these types of properties to be relatively safe, as homes appreciate most of the time. Plus, it’s an investment that you can almost always count on for a stable income.

 

At Ayvio, our view is that Airbnbs are relatively safe investments. Although it is true that any venture, whether it’s a rental property, or putting all your money in the stock market, carries with it the risk of loss, Airbnbs tend to be a safer alternative. Here are three reasons why Airbnbs are better than traditional rental properties.

 

It Has A Diversified Income Stream

With traditional property rental routes, you have one tenant that lives in your home for a specific time (maybe the lease is one year). That tenant pays a fixed rate per month. If anything goes wrong – the tenant loses their job – then your income stream goes away. Furthermore, in some jurisdictions, like New York City, for example, it can be incredibly costly to evict tenants. When you need income, that is when it can also cost you the most to oust the current tenant and find someone new.

 

Airbnbs have diversified income. You rent it out to someone new each day or week. As long as you pick your home in a good location, there will always be different people that want to rent it.

You Will Be Paid

Being a landlord always carries with it some risk that you won’t receive payment. Checks bounce and can be late. Or the tenant may be having financial issues. With Airbnb, since the tenants pay before the stay, you can have reasonable confidence in receiving your money. Unless they have an atrocious time at your place, Airbnb will give you the money they pay for the stay. Knowing that, if you can rent out your location, then you are guaranteed to have cash in your account makes Airbnb an attractive option.

 

You Can Make A Lot More

Areas that might be lucky to fetch $1,000 per month can often go for $2,000 or more if rented out correctly on Airbnb. There are even ways to maximize that income further by adjusting rental prices to account for games and other local events in the area. While Airbnbs can have some seasonality to them (that is, there can be some slow times) for the most part, they tend to earn more than rental properties. The increased money makes up for their potential slow periods.

 

Airbnbs Are Fantastic Investments

There’s no question that Airbnbs make excellent investments. If you are interested in owning an Airbnb and want to earn passive income, consider partnering with our hospitality company to provide the best experience for your guests and maximize your return on investment!

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