We believe the properties to have the most revenue potential for Airbnb to be 2 of the following properties and this is our reason why.
First, we see the highest profiting properties to be those with a stand-alone unit and also with secondary units. This creates a higher marketing potential. Not only can you host a family of let’s say 6-8 guests in the main home you can also market the secondary units to business travelers or couples traveling together who do not necessarily need a large space and are comfortable with a studio or a 1 bedroom, 1 bathroom. A small tip that we find also profitable is combining both units together and marketing both units as one whole property. You are now opening your opportunities for larger groups or families and can charge a premium rate for a booking of the entire compound. Now we have crated 3 separate marketing groups in one property which will diverse your options and generate more inquiries to your property.
Secondly, understanding a property with secondary units can be costly and not within an investors budget. Our 2nd strongly recommended option would be a home with a pool. Sunshine sells itself in South Florida, and guests now more than ever are looking for privacy and their own pool to bathe in the sun with their family or group opposed to the traditional resort and hotel communal area. A pool will add between $150-$200 to your nightly rate and increase your profit exponentially. With our experience, we have seen these 2 investment options to have the largest return. Do not hesitate to also do your research and use tools like https://www.airdna.co
Keep in mind you will usually generate between 10%-20% higher return using the Airbnb business model than from conventional long-term rental, and 30%-40% if you seek our 2 best options for investment properties. But now let’s dive into the current market in South Florida, and the oversaturation of new short-term rentals popping up daily on Airbnb. In this market you will need to separate yourself from the competition, and not buying into the oversaturation in these 2 specific particular investment properties.
1-bedroom, 1-bathroom apartments are the most competitive on Airbnb. Not only will you be competing with the countless 1/1 on the Airbnb platform, but you will also be directly competing with nearby hotel rooms. If you are looking into purchasing your next condo, the best options are larger apartment with more rooms to host guests.
Secondly, single family homes are becoming more and more competitive within the market as well. If you are looking into purchasing an investment home without a pool or secondary units within the compound, you will need to make sure the property stands. A home with unique architecture, décor, or flair will stand out from the competition. Do not hesitate to also do your research and use tools like https://airbtics.com
Absolutely, usually all cities will have their own legislature. Assure you are well versed in your local government requirement before purchasing your investment property. Usually, requirements differ from city to city but for us in South Florida it’s ever changing. Keep up to date, and assure you are following the protocols and be a responsible host. You will save yourself the headaches in the long run. This is a great article with in depth summaries on our current regulation in South Florida. https://medium.com/keycafe/understanding-miami-and-miami-beachs-short-term-rental-regulations-561a74ded1a0
Definitely! Use these tools to your benefit, and make sure you create your own market analysis. Your competitors’ revenue is public, and these tools help generate calculated analysis with Annual potential revenue, nightly rates, and even occupancy rates.
Most of these software use a subscription base model, but it is month to month and you may cancel when you have finished your analysis of the market. These 2 are a few of the best analytics software companies.
Yes, and no. From my previous summary you have learned that there is an oversaturation market in specifically 1 bedroom and 1 bathroom condo units. Larger spaces with more rooms to host guests will typically separate themselves from the competition and generate larger revenue. Now the next challenge is the associations and how to find condos that allow short term rental legally.
Thankfully the heavy lifting has been done for us and this link is a great list of condos that allow short term rentals in South Florida: https://www.glebklioner.com/miami-condos-that-allow-short-term-rentals