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Category: All About Airbnb

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All About Airbnb Alternatives & Reviews

How accurate is AirDNA? I tried it for a month.

How accurate is AirDNA?
benoit-properties-portfolio

How accurate is AirDNA? I tried it for a month.

I first used AirDNA back in 2019 to find the most profitable London boroughs for my Airbnb Arbitrage business.  

  • Last updated April 25, 2024

I first used AirDNA back in 2019 to find the most profitable London boroughs for my Airbnb Arbitrage business. I decided to purchase their expensive subscription, which was over $200 (I think). Before going further, this is just my personal story about my experience with AirDNA, its data accuracy, and why I built Airbtics.

 

I was skeptical about their data accuracy, so I asked a few Airbnb host friends if their income matched what’s shown on AirDNA’s Rentalizer. I got mixed results. Half said it’s similar, and half said it’s far.

My job back then was a software developer at WhatsApp, so as a developer, I started to dig into how they collected the data. By reading their pages, I can tell that they 1) scrape from Airbnb listings and 2) get booking data directly from hosts who have agreed to give them the data. That’s cool.

Then, my question was, if they scrape the data from Airbnb calendars, how can they tell if a listing was booked by a guest or blocked by a host? Because I played with Airbnb’s API, and they do not show whether a night is booked by a guest or blocked by a host. It just shows it as “blocked”. AirDNA says that Airbnb used to show this information back in 2014, and they took advantage of that and built a classifier. That’s interesting.

So, here’s a small tip.

Verify your data using ENEMY method

Along with the calculator, you can also use the ENEMY method to ensure you estimate the accurate amount of revenue. The ENEMY method simply means going to the Airbnb site to find 5-10 listings that are most similar to the house you want to list on Airbnb. Then, check how many days are booked in the next 6-8 weeks. Also, check how many reviews on average they get every month. Compile them on an Excel sheet. You may see some interesting patterns.

Anyway, thanks to AirDNA, I realized Airbnb Arbitrage won’t be that profitable in London. That is lucky to me because the Covid hit hard a few months after I made this conclusion.

My thoughts on AirDNA’s rentalizer

I’ve had a few difficulties using AirDNA. One is that they do not have some markets in Asia and South America where I was interested in buying an investment property. Another problem is their submarket boundary definition. On some occasions, two areas in a submarket have a completely different average occupancy rate. A common example is that, in beach town, properties that are right by the ocean have a higher occupancy than the ones that are located inland. Also, I was not convinced about their approach to data accuracy.

So, I built Airbtics, which is an alternative to AirDNA. It has a tailored region feature where you can draw a shape in any markets to get short-term rental data. It has dynamic data updating feature which you can see the Airbnb statistics of the exact micro area you see on the map. Finally, I’ve improved data accuracy of Airbnb occupancy rate data by following method: By labeling the millions of “review” data. Basically, if a series of blocked nights on Airbnb calendar generates a review in the future, we can label those nights as “confirmed booked”. By doing this, our data accuracy improved by 98%, and we were able to score some deals with big-name hedge funds.

savannah ga heatmap
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Airbnb Investment All About Airbnb

Investing in short term rentals: Is it really Low risk and high return investment?

is airdna accurate
is airdna accurate

Investing in short term rentals: Is it really Low risk and high return investment?

Investing in short-term rental is buying the most stable asset (which is housing) with rental profit twice higher than traditional rentals.

  • Last updated April 24, 2024

Investing in short-term rental is buying the most stable asset (which is housing) with rental profit twice higher than traditional rentals. Considering buying a short-term rental property? You are at the right blog.

Housing has been the best-performing asset class in history, according to research tracking various assets over 145 years. Better than stocks. This was documented going back to 1870 in a 2017 paper from the Federal Reserve Bank of San Francisco titled The Rate of Return on Everything, 1870-2015. The average real return on global housing from 1870 to 2015 was 7.05% compared to 6.89% for equities. The housing return also came with a substantially lower standard deviation – meaning less risks.

However, real estate has some unique limitations, making it impossible for any individual investor to access safe and high returns. Foremost, the paper assumed that you invested in 16 countries at the same time, and managed the properties efficiently without any gaps in long-term tenants. Sounds easy, right? But here’s a little secret: Individual investors can compensate for the lower rate of return by investing in short term rentals. Even just renting out as a short-term rental for 5 years can compensate for your average return. Let’s analyze why short term rental investment has incredibly good return with low risk.

Airbnb Profitability Analysis in Savannah, GA (Example)

It is important to note that the real estate return includes both the asset’s price increase and the net rental income. Each makes up about half of the total return according to the research.

For instance, consider Savannah, GA, where the average home price in 2023 stood at $199,950. Factoring in additional costs such as closing fees and maintenance expenses, investors face an initial investment of $205,950. However, adept management of a short-term rental property can yield substantial profits, often surpassing those of traditional long-term leases.

Taking a conservative approach, assuming a modest annual property appreciation rate of 5.5%, investors can anticipate an average annual return of 9.28% after a decade. Compare this to the S&P 500’s 9.67% average annual return during a similar period. However, the real game-changer lies in Airbnb rentals. With an average 1-bedroom Airbnb fetching $42,632 annually, albeit with higher maintenance costs, investors can enjoy a monthly profit boost of $863, translating to an impressive 12.01% rate of return. Moreover, strategic management can push this figure even higher, reaching up to 13.63% for top-performing listings (Applied estimated revenue of top 25% Airbnb listings in Savannah) or potentially 14.23% for properties acquired below market value (20% BMV).

(The return looks something like this)

Annual-Return-Rate

What’s incredible about buying a short term rental property is this – There are so many variables you can control. Unlike investing in stocks, you can manage your property better for better returns. Unlike stocks, you can also find investment properties lower than market value.

Mitigating Risks in Short-Term Rental Investments

Despite its promises, investing in short-term rentals does not come without risks. Regulatory uncertainties, such as city-imposed restrictions or bans on short-term rentals, can disrupt income streams. However, even in adverse scenarios, the underlying asset’s value tends to appreciate steadily, offering a buffer against regulatory upheavals. Additionally, the potential underperformance of property values can be mitigated through diversification across markets, leveraging the lower correlation between real estate markets compared to stocks.

Can you manage your Airbnb remotely?

How can you manage internationally or in different countries? This is, in fact, easier than many think, and it’s a common practice nowadays. The smart lock allows guests to check in without you. You can manage door lock settings remotely just from your mobile phone. For maintaining the property, you can use a platform like Turno to find local cleaners for your Airbnb. Once things are set up right, visiting the property once a year can be enough for you to get year-round bookings.

Find out how much you can make on Airbnb with analytics!

If short-term rentals sound like a cool idea, why don’t you spend 2 minutes using Airbnb Analyzer to check the average occupancy rate of your markets? It’s all free!

SEE MARKET DATA FOR FREE!

If you don’t see good numbers in your market, you can identify other lucrative markets. You can use the heatmap feature to locate the most profitable areas and types of properties.

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    Categories
    Airbnb Investment All About Airbnb

    Traditional Rental Properties vs Airbnb: Which is More Profitable?

    Traditional Rental Properties vs Airbnb Which is More Profitable
    Traditional Rental Properties vs Airbnb Which is More Profitable

    Traditional Rental Properties vs Airbnb: Which is More Profitable?

    Explore the world of real estate investment: traditional long-term rentals vs. Airbnb. Discover how short-term rentals provide a flexible, profitable alternative for earning passive income without the commitment of long leases.

    • Last updated March 13, 2024

    Investing in rental property is an established method to make extra money. Investors view traditional long-term rental properties as viable ventures. However, there are ups and downs when renting out a house for investment and long-term capital appreciation. That’s where more investing opportunities like Airbnb outside traditional leasing come in.

    Airbnb is becoming a more well-known service for momentary and holiday rentals. Short-term rentals, which operate as an alternative to hotels and conventional B&Bs, have shown to be a successful means for investors to generate passive revenue from their rental property without signing a long-term lease. For most real estate investors, the most important thing is to maximize earnings while lowering risks and overhead.

    As an investor, the choice between renting for maximum income and using Airbnb will come up if you’ve bought an investment home. This ultimately begs the question, which is better regarding return on investment: longer-term rental or Airbnb? Come with us as we help you answer this question and contrast traditional renting with Airbnb in this post to help you understand the benefits and drawbacks of each approach. 

    What is Traditional Rental Property?

    The conventional method of renting a property is through traditional rentals. Otherwise known as long-term rentals, tenants sign a lease with you for a predetermined time, usually a year, and pay rent monthly. In this case, tenants handle other costs like power bills and paying the owner regularly. 

    Monthly rentals are possible for some long-term rental homes, but most are leased for a period of one year. Real estate investors can reap numerous advantages from long-term rentals. Less turnover and consistent cash flow through monthly rent are two of them. One of the drawbacks of long-term rental properties may be the legality of screening potential tenants and drafting strong lease agreements. Bay Property Management Group can help manage your rental property’s needs.

    What is Airbnb?

    Airbnb is an internet platform that facilitates the rental of residences or spare rooms by investors to tourists needing lodging. “Airbnb” refers to “air bed and breakfast,” which initially reflected the company’s early emphasis on renting out air mattresses and conventional bed and breakfast lodging. 

    In exchange for the platform’s assistance in matching hosts with prospective guests, Airbnb charges hosts a fee. All costs associated with the property, such as upkeep, utilities, and cleaning, are covered by the hosts, who charge a fixed fee. 

    The nightly rate, cleaning costs, and cancellation guidelines are all at the host’s discretion. Because of this, Airbnb levies variable costs, typically 3% of the entire cost of the booking for hosts and 5-20% of the booking total for guests, as a service charge.

    Clients can rate hosts, and the hosts with the best evaluations get super host ratings, which elevate their properties on the platform. 

    Pricing Model of Traditional Real Estate vs Airbnb

    • Potential Rental Income

    Airbnb: Purchasing an Airbnb home may increase rental revenue, particularly in regions with many visitors or well-known tourist locations. On a nightly basis, short-term rental rates can often be higher than long-term rental rates.

    Traditional renting: Over time, shifting to long-term rentals has provided more reliable and steady rental income. Long-term tenants decrease the demand for periodic turnovers and offer consistent occupancy, even though the rental rates may be lower than short-term rentals.

    • Demand and Occupancy for Rentals

    Airbnb: Seasonal variations, events, and tourists can all impact the demand for short-term rentals. Nevertheless, occupancy rates may differ based on the area’s competitiveness, property type, and place of residence.

    Traditional rental: Occupancy rates for long-term rentals are typically more steady and reliable. Several factors, including housing demands, employment possibilities, and population expansion, typically influence long-term housing demand. Long-term rental opportunities are often solid in vital population centers and growing markets. 

    • Property Ownership and Upkeep 

    Airbnb: Taking care of an Airbnb property entails cleaning regularly, guest relations, and ensuring visitors have a good time. Using a professional property management company and investing more time and energy into this approach could result in lower profits.

    Traditional renting: Long-term leases may require less daily administration and often include fewer turnovers. In addition to handling tenants’ requests and ensuring the property complies with local laws, landlords still have maintenance difficulties.

    • Adaptability and Property Usage

    Airbnb: Purchasing an Airbnb home allows you to utilize it for yourself when not rented out. Property owners can change accessibility depending on personal preferences or reserve particular dates for their own use.

    Traditional renting: Tenant possession of the property is guaranteed for the life of the lease when renting a long-term property. Unless otherwise agreed upon with the tenants, landlords cannot use the property for personal reasons once the lease expires.

    • Compliance Aspects to Take into Account

    Airbnb: Depending on the local government, homeowner associations, or short-term rental laws, managing an Airbnb property may be subject to particular rules, licenses, or limitations. It is essential to comprehend and abide by the appropriate laws and regulations for the specific area. In an effort to keep locals from being priced out, more and more cities are restricting the usage of Airbnb. Verify again that renting out your house on Airbnb is permitted in the area where it is situated. 

    Traditional Renting: Landlord-tenant rules and regulations apply to conventional rental homes and differ depending on the jurisdiction. Legal regulations pertaining to lease agreements, tenant rights, and eviction processes must be followed by landlords.

    Factors to Consider When Choosing an Investment

    Factors to Consider When Choosing an Investment

    1. Location and Zoning Laws

    Knowing and comprehending legal standards and local laws pertaining to regular rentals and Airbnb is vital. Short-term rentals are subject to specific laws or regulations in some localities or homeowner organizations. Zoning rules, rent control ordinances, and landlord-tenant legislation are examples. These laws must be followed without exception, as breaking them can result in expensive legal problems.

    2. Expenses

    Investments in rentals and Airbnb include costs and obligations. Regular upkeep expenses, real estate taxes, and sometimes utility payments are all associated with renting out a house and are typically the tenant’s duty. Airbnb may incur additional expenses for cleaning, furnishings, marketing, and booking platform fees. Using property management services or having greater hands-on engagement is also necessary when managing an Airbnb property.

    3. Amenities Around the Property

    The fundamental principle of real estate investing continues to be the expression “location, location, location.” The location is a significant factor in determining your rental property’s desirable and profitable qualities. Tenants find properties near public transport, schools, hospitals, and shopping malls more appealing.

    Legal Documents that Protect Investors 

    1. Rental Agreement

    A written or verbal contract known as a rental agreement grants a renter temporary use and occupancy of a landlord’s property. A rental agreement typically lasts one month, after which it expires and is renewed by the parties every month. The tenant pays the agreed-upon rental amount to the landlord in exchange for tenancy.

    2. Waiver of Liability

    A legal document known as a waiver of liability provides security to both parties to an agreement. It is a formal contract that absolves one party of all liability for any harm to the other party’s property that may happen while the contract is in effect. This kind of waiver is frequently utilized when renting or borrowing property, such as cars, equipment, or items for events.

    A liability waiver shields the party from relinquishing liability from any lawsuit resulting from property harm to the other party. This contract is essential to any property transaction since it gives both parties involved legal backing and serenity.

    Final Thoughts 

    Investing in real estate has historically been the cornerstone of numerous wealth-building techniques. Rental properties provide prospects for long-term appreciation and a return on investment from rental revenue, regardless of whether you want to rent or use Airbnb. The best option for you will depend on the local short-term rental market, as well as how much money you have to pay a management agency or how much time you have to devote to management. 

    Every real estate investor should have several vital real estate documents ready. These records aid in safeguarding your privacy and defending you from rivals attempting to take advantage of your clientele. They can also prove you have followed all applicable municipal laws and zoning rules. You can sell your real estate assets at their entire worth, as decided by your local city council or zoning board, if you have this documentation ready in advance.

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      Guides Most Profitable Airbnb

      Best Airbnb Markets Ranked by Data Scientist

      top_12_us_airbnb_markets_ranked
      top_12_us_airbnb_markets_ranked

      Best Airbnb Markets Ranked by Data Scientist

      I’ve analyzed the profitability of 12 US Airbnb markets. The primary factor is how much you will make in 10 years from an average short-term rental investment in a market. I discovered markets from 350% return in 10 years to 150% return.

      • Last updated March 7, 2024

      If you have a high paying full time job, short-term rental investment may be the fastest way to achieve financial freedom.

      90% of millionaires attribute their wealth in part to real estate holdings. Thanks to Airbnb, you can increase rental income from your investment property.

      Real estate is all about location. So, today, I’ve ranked 12 cities into 4 different tiers depending on how much wealth it will bring to you in 10 years. Where did I get this list? I chose the markets that other short-term rental YouTubers and bloggers claim to be the best Airbnb markets.

      List of cities we’ll cover

      • Chicago 
      • Columbus, GA 
      • Flagstaff 
      • Gatlinburg 
      • Green Bay
      • Houston 
      • Joshua Tree 
      • Miami 
      • San Francisco
      • Santa Cruz 
      • Savannah 
      • Seattle 
      • South Bend 

      Methodology

      How much will you make from this investment in 10 years is the primary factor for ranking. I call this 10 years ROI. 10 years ROI comes from home value appreciation and profits from running an Airbnb.

      Assumptions 

      • All cash purchase (No mortgage) 
      • 2023 data for home value and short-term rental revenue 
      • 1-bedroom house investment 
      • Closing cost and furnishing cost not included 

      Home Price Forecast (2024 – 2033) model used the following 3 factors 

      • 5 years home price change 
      • 5 years average income level change 
      • 5 years population change 

      I used a model that predicts the next 10 years’ home value appreciation based on historical property prices, population, and income changes. I won’t go into details about this prediction model, but you can find this in the Airbtics app. Here is one example of how the model works. If the average home price has been increasing rapidly, let’s say 15% a year, but the total population and average income are not growing as fast as the housing price, then, the model will correct the home value appreciation rate to be lower than the past years.

      For your information, If you take a mortgage, the ROI will become a lot higher. Also, I did include the tax and initial starting cost. You have to spend money on furnishing, as well as, closing the property. 

      Recommend Read: How to do short-term rental market analysis

      Investing in mountain destinations 

      Let’s start with 3 mountain destinations. I recommend you to do an Airbnb in a place you’d like to visit once in a while. This can help or even push you to make time to do your hobby. So, if you like snowboarding or hiking, investing in a mountain can be an exciting option. The downside is that it will be hard to find a long-term or mid-term tenant when the short-term rental demand goes down. However, the local governments are short-term rental friendly because tourism is their major industry. There’s very little regulatory risk.

      Gatlinburg is a gateway town to the Smoky Mountains. It’s 3-4 hours drive to Nashville and Atlanta. You need to get a short-term rental permit and maintain certain conditions to be an Airbnb host here. This kind of regulation is good for the short-term rental industry in the long run.

      Gatlinburg
      Rank: 11th – Should have invested in S&P 500
      10 years ROI: 197% 
      Net Yield: 5% 
      Home Price Forecast 2023 – 2032: 8.1% 
      Occupancy Rate: 73% 
      Average Daily Rate: $153 
      Yearly Airbnb Revenue: $40k 
      Property Price (2023): $478k 
      Home Value Trend: 7.9% per year 
      Population Trend: 3.1% per 5 years 
      Income Trend: 35.1% per 5 years 

      Flagstaff is a gateway town to San Francisco Peaks. Another similar town is Sedona. It’s a 3-4 hour drive to Phoenix. This city doesn’t get as warm as Phoenix due to its high altitude. This place is getting popular rapidly these days.

      Flagstaff
      Rank: 10th – Should have invested in S&P 500
      10 years ROI: 206%
      Net Yield: 5%
      Home Price Forecast 2023 – 2032: 8.25%
      Occupancy Rate: 71%
      Average Daily Rate: $110
      Yearly Airbnb Revenue: 29K
      Property Price (2023): 325K
      Home Value Trend: 9.5% per year 
      Population Trend:  4.4 per 5 years
      Income Trend:  25.7 per 5 years

      Joshua Tree might be your place If you are looking for some wilderness near Los Angeles. It’s where two distinct desert ecosystems meet, the Mojave and the Colorado.

      Joshua Tree
      Rank: 8th – Should have invested in S&P 500
      10 years ROI: 244%
      Net Yield: 6%
      Home Price Forecast 2023 – 2032: 8.75%
      Occupancy Rate: 62%
      Average Daily Rate: $143
      Yearly Airbnb Revenue: 33K
      Property Price (2023): 349K
      Home Value Trend: 9% per year
      Population Trend: 3% per 5 years
      Income Trend: 37.0% per 5 years

      Investing in Rural and Suburb 

      Now, we’ll go through rural & Suburban towns. You can find the cheapest properties in rural and suburban areas. These are the ones without major tourist attractions like ski resorts or Disneyland. There are some rural areas with good short-term rental demands, and it’s for work like traveling nurses or construction workers, or sometimes, college student’s families. I believe rural and suburban areas tend to be the best markets for high return on investment.

      Green Bay is a rural town known for the Green Bay Packers. It’s in Wisconsin, a very peaceful state. I included this in the list because I went to high school here for 6 months. People use Airbnb for business trips, to visit their family, and occasionally travelers.

      Green Bay
      Rank: 4th – Congrats (300%)
      10 years ROI: 258%
      Net Yield: 11%
      Home Price Forecast 2023 – 2032: 7.0%
      Occupancy Rate: 42%
      Average Daily Rate: $128
      Yearly Airbnb Revenue: 20K
      Property Price (2023): 109K
      Home Value Trend: 6.3% per year 
      Population Trend: 3.9% per 5 years 
      Income Trend: 30.6% per 5 years

      South Bend is a suburban town in Indiana and home to Notre Dame University. Two hours away from Chicago International Airport. The two main industries here are health care and education. So, you can expect to receive traveling nurses and college students’ families as your guest.

      South Bend
      Rank: 2nd – to the moon (400% in 10 years)
      10 years ROI: 363%
      Net Yield: 19%
      Home Price Forecast 2023 – 2032: 6.6%
      Occupancy Rate: 54%
      Average Daily Rate: $111
      Yearly Airbnb Revenue: 24K
      Property Price (2023): 75K
      Home Value Trend: 7.0% per year
      Population Trend: 1.2% per 5 years
      Income Trend: 28.3% per 5 years

      Columbus is a suburban town in Georgia. To do short-term rentals, you need to apply for a vacation rental permit. The city seems to put heavy effort in bringing more tourists. There are some good museums, like the Columbus Synchronous Orchestra and the Columbus Museum.

      Columbus
      Rank: 1st – to the moon
      10 years ROI: 379%
      Net Yield: 22%
      Home Price Forecast 2023 – 2032: 5.75%
      Occupancy Rate: 71%
      Average Daily Rate: $78
      Yearly Airbnb Revenue: $19K
      Property Price (2023): $51K
      Home Value Trend: 4.1% per year
      Population Trend: 5.2% per 5 years
      Income Trend: 26% per 5 years

      Try Airbnb Analytics

      Investing in coastal towns 

      Coastal towns attract year-round visitors, whether it’s for beach or fishing or port. For this reason, housing prices tend to be more expensive near the coast. But, the short-term rental revenue is also high.

      Savannah. What’s noticeable here is the high average Airbnb rental revenue, it’s 43k per year. The average daily rate is $163 per night, and among the cities we reviewed so far, this is the highest number. The property price isn’t too expensive either, Just about 200k. This gives 316% 10 years ROI, so it goes to the congrats tier!

      Savannah
      Rank: 3rd – Congrats! (300%)
      10 years ROI: 316%
      Net Yield: 13%
      Home Price Forecast 2023 – 2032: 7.95%
      Occupancy Rate: 69%
      Average Daily Rate: $163
      Yearly Airbnb Revenue: 43K
      Property Price (2023): 200K
      Home Value Trend: 7.6% per year
      Population Trend: 7.7% per 5 years
      Income Trend: 28.5% per 5 years

      Miami is one of the most known vacation destinations attracting a huge number of international travelers. More and more businesses are opening branches in Florida, such as Goldman Sachs and Blackstone. It has a good international airport serving flights to cities in Latin America and Europe.

      Miami
      Rank: 5th – Should have invested in S&P 500
      10 years ROI: 250%
      Net Yield: 8%
      Home Price Forecast 2023 – 2032: 8.45%
      Occupancy Rate: 69%
      Average Daily Rate: $143
      Yearly Airbnb Revenue: 33K
      Property Price (2023): 253K
      Home Value Trend: 9.3% per year
      Population Trend: 1.7% per 5 years
      Income Trend: 33.5% per 5 years

      Santa Cruz is a nice surfing town for someone based in the Bay Area. When I was working at Meta, I heard someone commuting from Santa Cruz to the Menlo Park Meta office. He bragged that the 17 highway has a nice view.

      Santa Cruz
      Rank: 12th – Should have invested in S&P 500
      10 years ROI: 179%
      Net Yield: 5%
      Home Price Forecast 2023 – 2032: 7.6%
      Occupancy Rate: 68%
      Average Daily Rate: $183
      Yearly Airbnb Revenue: 44K
      Property Price (2023): 563K
      Home Value Trend: 7.6% per year
      Population Trend: -1.7% per 5 years
      Income Trend: 41.7% per 5 years

      Investing in urban

      Urban attracts people. Property appreciation is faster. Things are always happening. Short-term rental yields are low due to high property prices, but it’s quicker to buy and sell a home, and there’s always long-term rental demand. There’s a high regulatory risk, more and more cities are enforcing new short-term rental regulations every month, like New York City and Dallas.

      San Francisco is one of the most expensive cities to live in the US. There are numerous amount of high tech companies. Even Airbnb’s headquarters is here. A lot of high-paid jobs. Year round good sunny yet cool weather. I visited here quite a few times while working for Meta. I really loved the city and vibe.

      However, just like New York City, they’ve been cracking down on Airbnb hosts. You can only run an Airbnb 90 days a year, and you need to be a resident of San Francisco. Some hosts bypass this law, but their fine is heavy, so I wouldn’t personally risk it.

      San Francisco
      Rank: 13th – Ramen profitable
      10 years ROI: 174%
      Net Yield: 3%
      Home Price Forecast 2023 – 2032: 8.4%
      Occupancy Rate: 76%
      Average Daily Rate: $154
      Yearly Airbnb Revenue: 42K
      Property Price (2023): 812K
      Home Value Trend: 8.4% per year
      Population Trend: 1.1% per 5 years
      Income Trend: 39.5% per 5 years

      Seattle allows one secondary home to be let out as a short-term rental. If you are looking to diversify your short-term rental investment portfolio, Seattle can be a great option too.

      Seattle
      Rank: 6th – Should have invested in S&P 500
      10 years ROI: 249%
      Net Yield: 4%
      Home Price Forecast 2023 – 2032: 10.8%
      Occupancy Rate: 77%
      Average Daily Rate: $128
      Yearly Airbnb Revenue: 35K
      Property Price (2023): 570K
      Home Value Trend: 11.5% per year
      Population Trend: 7.1% per 5 years
      Income Trend: 38.7% per 5 years

      In Chicago, you need to apply for a short-term rental permit, and the process is quite straightforward. This puts this city in a better position than Seattle and San Francisco. I think Chicago is a great place to live. Good job opportunities. And still cheap property price.

      Chicago
      Rank: 9th – Should have invested in S&P 500
      10 years ROI: 217%
      Net Yield: 11%
      Home Price Forecast 2023 – 2032: 5.65%
      Occupancy Rate: 65%
      Average Daily Rate: $121
      Yearly Airbnb Revenue: 28K
      Property Price (2023): 157K
      Home Value Trend: 5.3% per year
      Population Trend: 0.2% per 5 years
      Income Trend: 29.4% per 5 years

      Houston doesn’t have a strict Airbnb regulation. But Recently, Dallas banned short-term rentals in residential areas. So it’s a matter of time for Houston to start STR regulation.

      Houston
      Rank: 7th – Should have invested in S&P 500
      10 years ROI: 231%
      Net Yield: 7%
      Home Price Forecast 2023 – 2032: 8.15%
      Occupancy Rate: 62%
      Average Daily Rate: $91
      Yearly Airbnb Revenue: 21K
      Property Price (2023): 178K
      Home Value Trend: 8.8% per year
      Population Trend: 7.6% per 5 years
      Income Trend: 24.1% per 5 years

      top_12_us_airbnb_markets_ranked2

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        Categories
        Airbnb Investment Most Profitable Airbnb

        How to Short Term Rental Analysis to Find Profitable Airbnb Markets with 425%+ 10-Year Returns [For Property Investors]

        How to Short Term Rental Analysis to Find Profitable Airbnb Markets with 425%+ 10-Year Returns [For Property Investors]

        Residential property investment is one of the lowest-risk investments. But did you know you can achieve a 10% net rental yield by listing your property on Airbnb? By combining property appreciation and high cash flow, you can achieve 3-4 times the return on your investment in 10 years.

        • Last updated March 27, 2024

        How can you make the most money out of your residential investment property? I believe the answer is running an Airbnb.

        By combining high monthly cash flow from short-term rentals with annual property appreciation, you can easily achieve 3 times return on your investment in the next 10 years.

        But, this is only possible in markets with high short-term rental cash flow. How can you find this?

        “ Hi, I’m Jae, the founder and data scientist at Airbtics. We help investors to achieve ten thousand dollars in monthly passive income faster with short-term rental data.”

        Why Short-term rental market analysis?

        So, I’ve looked into short-term rental yields of more than 100 markets worldwide. As expected, there are many markets where the average expected Airbnb revenue is about the same in two cities, but the property prices are much cheaper in one city.

        Here, you can find that the average net short-term rental yield varies between 9% and 22%. What I want to emphasize is that the yield varies significantly depending on the market. Keep in mind, that this is just an average. The net yield in the best market is 2.3 times higher than in the worst market.

        Now, let’s take a look at the ten-year average property price changes in these markets, ranging from a 91% increase to a 33% increase in property prices over the last decade. It’s crucial to note that property price changes and net rental yields are not inversely proportional. This indicates that a market can experience both high net yield and high property appreciation.

        short-term-rental-market-analysis-of-12-cities

        After exploring these 29 markets through 29 simulations, it’s evident that Manchester would have generated the most wealth for you. In Manchester, the average property value increased by 91% in 10 years, translating to a 7.5% annual increase. An average short-term rental host recorded a 16.5% annual net rental yield. Your initial $100,000 investment in a short-term rental would have resulted in a total wealth of $425,000 after 10 years.If you had invested in the S&P 500, which recorded an 11% average annual appreciation, your wealth would have been a mere $235,795.

        3 key factors for a profitable short-term rental market 

        Alright, let’s break it down to the three key factors you should keep an eye on. These are the three. 

        • Population Growth (10 years change) 
        • Income Growth (10 years change) 
        • Short term rental yields (Last 3 years average) 

        Real estate researchers agree that population and economic growth are the most fundamental property pricing drivers. There is a limited amount of land in every city. If more people want to live there, and if they can afford higher property prices, this will drive the property price.

        Now, let’s talk about finding that perfect city to kickstart your Airbnb venture.

        How to use short-term rental analytics tool

        Alright, let’s dive into this map. It’s like your secret weapon for finding profitable markets. A high market grade here means the market has a high short-term rental yield, paired with some serious population and income growth in the last 10 years. And the best part? It’s all at your fingertips. Just click around, and boom, you’ve got the market grades of other cities right there.

        Now, where do we get our data? We use official government stats for population and income levels. And when it comes to property and short-term rental data, our software is on it. We’re scanning sites like Airbnb and Zillow, monitoring over 10M listings every single week. We’ve been doing this since 2019.

        Have you found an interesting market? Good, because once you spot a market that you like, head on over to the comparison tab. Voila! You can compare key market statistics side by side.

        And here’s where it gets interesting – you can deep dive into the nitty-gritty of your chosen market. We’re talking key metrics like average yearly revenue, daily rates, and occupancy rates. Want to get granular? Break it down by property size, type, or even review rating score. And hey, ever wondered where those guests are traveling in from? We’ve got that covered too.

        If it all checks out, hit that expand button on the map and witness the magic of the heatmap. Dark red? That’s the sweet spot – guests love that area. On the right, you can see top properties. These are the ones that are most popular among the guests in the specific neighborhoods. Pay attention to what types of properties are performing well. Want to know how much they raked in over the last twelve months? We’ve got the numbers.

        Armed with this info, you’re now ready to hit up websites like Zillow or Redfin and start your property hunt. Let the treasure hunt begin!”

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          The Hidden Gems: Unveiling Market Trends for Successful Vacation Rental Investments

          vacation-rental-investment-trends

          In this article, we’re not just throwing numbers at you! We’ll unearth some of the top market trends you can count on to make your vacation rental investments thrive in the face of heated competition, so read on.

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          The Hidden Gems: Unveiling Market Trends for Successful Vacation Rental Investments

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          Airbnb Investment

          The Hidden Gems: Unveiling Market Trends for Successful Vacation Rental Investments

          In this article, we’re not just throwing numbers at you! We’ll unearth some of the top market trends you can count on to make your vacation rental investments thrive in the face of heated competition, so read on.

          • Last updated February 4, 2024

          The Hidden Gems: Unveiling Market Trends for Successful Vacation Rental Investments

          Are you into vacation rentals and curious about what’s happening in the market? Well, you’re not alone! 

          To start with, vacation rental investments can be really profitable. 

          In fact, projections by Statistica hint that in the United States, the revenue from this venture could hit a staggering all-time high of $19.77 billion by the close of 2024, and a hefty $21.11 billion by the time 2028 elapses. 

          A promising future it is, right?

          But here’s the thing — triumphing in this arena is no walk in the park. The landscape keeps changing, so any astute investor who dreams of winning big in the industry must stay abreast of what’s happening. 

          In this article, we’re not just throwing numbers at you! We’ll unearth some of the top market trends you can count on to make your vacation rental investments thrive in the face of heated competition, so read on. 

          Identifying Emerging Short-Term Rental Properties

          The vacation rental sector has been experiencing remarkable growth over the last few years. Predictions from different sources on its growth potential differ slightly, but one thing is certain — these short-term living spaces are becoming more popular.

          There are a few reasons for this:

          • Proliferation of Online Platforms: The increasing number of online platforms has made it easier than ever for travelers to discover and book unique short-term rental properties. 
          • Growing Interest in Group and Family Travels: More families and groups are going on trips together, and they want bigger and more personalized places to stay. Holiday homes feel like a home away from home, which is great for groups and families.
          • Increasing Number of Digital Nomads and Millennials: The COVID-19 pandemic immensely boosted the adoption of remote working, and some organizations have continued with the practice even post-pandemic. 

          This, coupled with the rise of digital nomads and millennials, has played a major role in helping the short-term rental industry to grow. These modern travelers seek flexibility, authenticity, and unique experiences, and vacation rentals align perfectly with their preferences.

          Having examined the major drivers of the growing popularity, let’s look at some examples of markets in the spotlight with their respective compound annual growth rate (CAGR) as revealed by Future Market Insights:

          • United States (CAGR 5.9%): The United States continues to be a strong market, showing steady growth thanks to its diverse destinations and a wide range of vacation experiences. 

          However, it’s important to note that different states have different growth potentials, depending on how well their unique features match the demands of travelers. 

          Just as you would explore options for new homes in Florida if you intend to buy a home in a place that combines warm, sunny weather with a beautiful landscape, for instance, you will want to limit your search for vacation property to areas that provide the distinctive features you are looking for. 

          That generally affects the growth potential of different regions, with areas having the most sought-after features boasting higher growth prospects. 

          • Germany (CAGR 9.2%): Germany is also emerging as a hotspot, reflecting a growing demand for unique and culturally rich vacation rentals.
          • China (CAGR 14.6%): The Chinese market is experiencing rapid growth, fueled by an increasing number of domestic and international travelers.
          • India (CAGR 15.7%): India’s vacation rental market is flourishing, propelled by a mix of traditional hospitality and modern accommodation preferences.
          • Australia (CAGR 9.7%): Australia stands out with its picturesque locations, attracting travelers and contributing to the growth of its vacation rental market.

          Understanding Seasonal Demand Patterns In Vacation Rental Industry

          Seasons aren’t just about changing weather; they’re about changing demand. Demand for holiday rentals dances to the rhythm of changing seasons, and short-term rental investors are, more than ever, paying attention to seasonal ebbs and flows and how that affects demand for their rental properties. 

          Seasonal demand patterns are helping investors decide on how much they should charge for their vacation rentals and when. By adjusting the prices based on times and seasons, they avoid leaving money on the table during peak times or scaring away potential guests during slow periods. 

          During peak seasons, the rule of thumb is to increase your rates slightly. The demand for rentals at this time is high, so even with the higher charges, you will still end up renting your properties out. 

          On the flip side, during off-peak times, offering discounts or special deals can attract more bookings. At this time, the supply is higher than demand, so clients will be searching for the best deal. 

          In other words, regularly reviewing and adjusting your rates based on the season keeps your property competitive and income flowing.

          And, of course, to remain competitive, remember always to avail everything your guests will need during their stay. The goal is to give them a comfortable stay that will turn your first-time guests into repeat clients. 

          Not sure about the must-includes? You can check out our free, downloadable checklist for a quick guide. The document comprises a compilation of what guests say they expect to find in any vacation rental to have a great stay, so check it out.

          Choosing the Right Property Types

          Before you invest in a vacation rental, get to know the different types available. The accommodation type you choose to offer can make all the difference between success and just blending in with the crowd. 

          Your property type sets the stage for the kind of experiences you can offer, the size of the home, and many other aspects, directly impacting your guest’s satisfaction and the amount of income you can generate from it. 

          Here are some popular types available and their appeal:

          • Beachfront Bliss: Beachfront properties are a dream for sun-seekers. It’s a go-to choice for guests who generally find delight in the sound of waves and those craving for a relaxing escape.
          • Charming Urban Retreats: City apartments or townhouses offer a taste of urban living. This type of accommodation comes in as a real deal for travelers wanting a blend of cultural exploration and modern comforts.
          • Cozy Mountain Cabins: Nestled in the hills, mountain cabins are the best option if you’re targeting nature lovers. The tranquility and scenic beauty make them a hit for those seeking a retreat.
          • Luxurious Villas: Villas exude luxury, attracting guests with heightened demand for space, privacy, and upscale amenities for an indulgent vacation. They’re more popular on ocean sides or other areas with beach-side attributes. 

          When choosing the right property, remember to consider your investment goals. Ask yourself this question: Are you aiming for high-end travelers, family vacations, or romantic getaways? 

          Once you have the answer, tailor your property type to your target audience, ensuring a seamless match between your investment and the desires of your potential guests.

          In this dynamic market, understanding the nuances of property types is your key to standing out. Stay with us as we unravel more insights to guide you through the exciting journey of vacation rental investments.

          Navigating Regulatory Requirements

          Before you join the world of vacation rental investments, also acquaint yourself with the pertinent local regulations. Understanding them and ensuring compliance acts as your compass for a thriving venture.

          Sailing through local regulations can feel like maneuvering a maze. Yet, it’s a critical journey. Compliance ensures a secure and sustainable investment, safeguarding your property and the experience you provide to your guests.

          The key to avoiding turbulent waters is staying informed. Regularly check local authorities’ websites, join local business groups, and tap into online forums. These sources are great sources of information to keep you on the right side of the law.

          Also, consider hiring a local property manager who is well-versed in local regulations. Having the guidance of a professional can help ensure that you’re steering clear of potential pitfalls. 

          Leveraging Technology and Automation in Vacation Rental Trends

          As technology advances, vacation rentals are harnessing its benefits to revolutionize the real estate landscape. In fact, technology and automation go beyond mere tools; they’re trendsetters that are totally redefining how the properties are managed and experienced by guests.

          Some of the main automation areas include the following:

          • Channel Managers: It can be confusing when your guests have to read inconsistent information about you on different online travel agencies (OTAs). With this automation, you only need to update the info on one site, and the change will automatically be reflected in all others. 
          • Automated Guest Communication Platforms: By automating communication processes, vacation rental owners ensure they provide timely responses and personalized touches for guests.
          • Contactless Arrival and Departure Solutions: From check-in to departure, automation tools are now ensuring a seamless and technologically advanced stay for guests.
          • Smart Home Automation: This trend not only enhances energy efficiency but also offers guests control over amenities, providing a contemporary and appealing stay.
          • Dynamic Pricing Tools: Now, you don’t have to navigate the complexities of adjusting your charges during peak and off-peak seasons. Dynamic pricing tools that adapt rates based on real-time demand are now in place, simplifying the process without compromising your appeal to guests.
          • Keyless Entry Systems: Vacation homes are now simplifying access for guests with keyless entry systems. This automation enhances the overall guest experience while providing a secure and convenient entry method.
          • Cleaning Management Software: With this technology, vacation rental companies have found it easy to streamline property upkeep. This software efficiently schedules and tracks cleaning tasks to maintain a consistently pristine property, ensuring guest satisfaction and positive reviews.

          Now, while technology is a significant plus, its implementation requires a systematic approach. Phasing in technology ensures a smooth transition, preventing potential pitfalls that could frustrate the entire venture. 

          Crafting Effective Marketing Strategies

          With the level of competition in the vacation rental sector, you can’t downplay the significance of using marketing strategies. Over 70% of travelers will do their research online before making a decision, so if you’re nowhere to be seen on those pop-ups or search results, the chances of making it in the vacation housing arena are negligible.

          So, like the rest of the industry members, invest heavily in online advertising to enhance your property’s visibility. Utilize popular social groups like Facebook, Instagram, YouTube, and the steadily rising TikTok. These platforms provide an expansive reach, tapping into a diverse audience of potential guests.

          And yes, as you factor in marketing, don’t forget that up to 81% of travelers rely on online reviews when deciding where to stay, with a significant 80% of this number targeting 6 to 12 reviews, as revealed by Trip Advisor. 

          What this means is that your clients become your most powerful marketing weapon for attracting or scaring away future guests. Hence, constantly encourage them to leave an online review, as a great number of travelers looking for a place to stay would rather choose a locale with reviews than one without.  

          Of course, as you market and build a reputation for your brand, remember that keeping a compelling online presence is necessary for a robust fanbase. 

          Regular captivating social media posts, active social media engagement, collaboration with influencers, special promotions, and leveraging visual appeals for your website and social media platform are all great ways to ensure that you maintain a captivating online presence.

          Analyzing the Competition

          Do you know there are 1.3 million vacation rentals in the United States alone? That’s as per a 2023 analysis report published by Ruby Home. This colossal presence highlights the current level of competition in the industry, with projections of larger vacation rental market size suggesting an even tougher space. 

          Now, to remain atop amidst the high heat of this competition, pay attention to what your industry mates are doing. Your competitors will be keeping an eye on you to capitalize on your mistakes, so you’d rather do yourself justice and replicate it. 

          Maintaining a close eye on what your competitors are doing helps you identify existing gaps in the market, making it easy to devise strategies that help you capitalize on them.

          To effectively analyze the competition, employ strategies like:

          • Online Research: Explore competitors’ websites, social media, and online reviews to understand their offerings, pricing, and guest satisfaction. 
          • Stay Incognito: Experience competitor properties as a guest. Note the amenities, guest experience, and any unique selling points.
          • Mystery Shopping Services: Hire mystery shopping services to evaluate competitor properties. These services send incognito evaluators to experience the booking process, property amenities, and overall guest experience. 
          • Social Media Monitoring Tools: Utilize social media monitoring tools to track competitor activities on platforms like Facebook, Instagram, and X, formerly Twitter. Analyzing their engagement, content strategy, and audience interactions provides valuable insights.
          • Competitor Pricing Tools: Invest in tools that track competitor pricing in real-time. Understanding how others price their rentals during different seasons or events allows you to adjust your rates strategically to stay competitive.

          Once you’re armed with data on competing properties, tailor your approach to make the most out of the loopholes identified. For example, if they lack a pet-friendly policy, consider accommodating furry friends.

          Prioritizing the Guest Experience

          With the fiercely competitive vacation rental industry, investors are now paying more attention to offering impeccable guest experience. 

          Investors want to ensure that they’re getting the best feedback in every review left by a client. That’s because, as stated earlier, positive reviews are becoming cornerstones of success, influencing potential guests.

          And remember, most of the people scouring the internet for these reviews want the freshest insights, so maintain an ongoing pursuit of positive reviews through excellent guest service and encourage your guests to provide their ratings.

          But how can you make your guest experience better than that of the competitors? Well, you might be wondering.

          Here are some of the ways of enhancing the guest experience:

          • Personalized Touches: Whether it’s a welcome note, a favorite snack, or local recommendations, personalized touches leave a lasting impression and don’t cost as much. 
          • Prompt Communication: Respond to inquiries and messages as soon as possible. Timely communication establishes trust and ensures a seamless experience from booking to check-out.
          • Impeccable Cleanliness: Prioritize cleanliness and maintenance. A spotless and well-maintained property contributes significantly to guest satisfaction and positive reviews.

          However, it’s worth noting that when it comes to creating a memorable experience for your guests, we don’t have a specific way to do it. You can exercise creativity to come up with something that would generally heighten their positive experience in their stay.

          For instance, consider offering surprise welcome packages. You can also think about celebratory gestures, whereby you recognize special days for your guests, like their birthdays and anniversaries. 

          You don’t need to throw a big party for them that will shake your revenue. A small celebratory gesture, such as a complimentary bottle of wine, can mean a lot to them.

          By continuously refining and amplifying the guest experience, you cultivate positive reviews and foster guest loyalty, turning one-time visitors into repeat guests and advocates for your vacation rental. 

          Maintaining and Upgrading Your Property

          You can’t remain stuck in the past if you want to compete in the current era. One trend that successful rental investors are doing is frequently assessing their investments and incorporating new enhancements that guarantee sustained success and revolutionize user experience. 

          Essential features like showers, faucets, paint, and flooring deserve regular checks and maintenance as they’re all crucial to providing a seamless guest experience.

          A property maintenance routine helps ensure that every aspect is up to par. From functioning showers to well-dispensing faucets, attention to detail enhances guest satisfaction. 

          To finance this endeavor, set aside some of the revenue you get. A practical budgeting guide for maintenance is allocating 1% of the property’s value annually. 

          What this rule of thumb means is that if your property is valued at $300,000, you’ll need to earmark $3,000 for annual maintenance. Alternatively, budgeting a dollar per square foot of the house provides another perspective.

          Key areas of upgrade may include the following:

          • Smart Home Features: Integrate smart technologies for climate control, security, and entertainment. Doing this will enhance the property’s appeal to tech-savvy guests.
          • Landscaping and Outdoor Amenities: Invest in landscaping for curb appeal and add outdoor amenities like a barbecue area or a fire pit to create an inviting outdoor space.
          • Upgraded Kitchen Appliances: Modernize kitchen appliances to attract guests who value convenience and a contemporary culinary experience.
          • Enhanced Connectivity: Ensure high-speed internet and a reliable Wi-Fi network, addressing the increasing demand for remote work capabilities among travelers.
          • Energy-Efficient Systems: Upgrade to energy-efficient systems, such as lighting and HVAC. Doing this will not only reduce environmental impact and energy bills but also appeal to eco-conscious guests.

          Strategic property upgrades increase rental appeal and contribute to the property’s long-term value.

          Financial Planning for Success

          Are you aware that a crazy 90% of all vacation rental startups crumble within the first year in business? Medium.com says so, and one of the main reasons this happens is a lack of a proper financial plan.

          A good financial plan helps guide the business to success, serving as a shield in the turbulent short-term vacation rental market. 

          In today’s business world, businesses are increasingly recognizing the pivotal role of a robust financial strategy, making it imperative to ensure your vacation rental venture is part of this trend.

          Key Components of a Successful Financial Plan:

          • Strategic Revenue Projections: These include revenue expectations based on market trends, seasonality, and property demand.
          • Comprehensive Expense Management: It encompasses a thorough breakdown of all expenses the business expects to incur, from operating and maintenance to utilities, marketing, and property management fees.
          • Establishing an Emergency Fund: This involves allocating money for unforeseeable happenings in the future. It’s more of a security fund. 
          • Tax Planning Expertise: Navigating the intricacies of tax obligations and capitalizing on relevant incentives to optimize returns in the realm of vacation rental investments.

          On top of a comprehensive financial plan, properly manage your finances. It’s just as important as drafting the financial plan.

          Here are some tips for effective financial management:

          • Precise Expense Tracking: Maintain a detailed record of all expenses to identify areas for optimization and budget adjustments.
          • Diversified Marketing Investments: Allocate marketing funds strategically across various platforms to maximize reach and attract a diverse demographic of potential guests.
          • Regular Financial Reviews: Periodic financial plan reviews allow for adjustments in response to market shifts, ensuring agility in the face of dynamic conditions.
          • Prioritizing the Emergency Fund: Establishing and maintaining an emergency fund takes precedence, providing a financial cushion against unforeseen challenges or property-related emergencies.
          • Professional Financial Guidance: Seeking advice from financial professionals with expertise in real estate investments enhances the resilience and effectiveness of the overall financial plan.

          A thoughtfully constructed financial plan mitigates financial risks and positions investors for sustained success in the ever-evolving global vacation rental market. Stay tuned for further insights guiding you through the captivating trends of vacation rental investments.

          Mitigating Risks 

          No business is entirely free from risk. Hence, as an astute investor, it’s crucial to identify and address common risks proactively. 

          These risks can range from missed guest messages and double bookings to low demand and the ever-looming threat of receiving negative reviews. Managing these challenges requires a comprehensive approach to ensure a seamless, risk-minimized operation.

          Strategies for risk management and prevention involve implementing robust communication protocols to avoid missed messages and utilizing advanced booking systems to prevent double bookings. 

          Establishing a proactive maintenance schedule to address potential property issues before they escalate is equally vital. Additionally, fostering positive guest experiences through excellent service can mitigate the impact of negative reviews.

          And, of course, don’t forget the importance of insurance and contingency planning in your risk management efforts. 

          Insurance protects your investment against unforeseen circumstances such as property damage, liability claims, or unexpected cancellations. Conversely, contingency planning ensures you’re prepared for emergencies, providing financial resilience during challenging times. 

          Diversification

          Broadening an array of vacation rental holdings emerges as a wise trend that most investors use to bolster stability and curtail risks within the dynamic market. 

          Rather than concentrating all your resources in one basket, dispersing your financial commitments across varied property types, locations, or even target demographic segments can help maximize your revenue. 

          For instance, possessing real estate assets in both metropolitan and coastal settings diversifies your holdings across diverse markets. This guards against economic downturns or instabilities in particular regions from exerting an outsized influence on your overall investment. 

          Likewise, focusing on diverse demographic groups, such as families, business travelers, or those seeking luxury accommodations, introduces an extra layer of variety, diminishing susceptibility to shifts within any specific segment.

          But then, before diversifying, ensure that you diligently scrutinize market dynamics to pinpoint emerging trends and areas with heightened demand. Factors like local regulations, tourism industry trends, market size, and economic expansion warrant consideration when exploring novel prospects. 

          Furthermore, staying attuned to the evolving preferences of travelers enables alignment of your investments with the ever-changing demands of the market.

          Build a Network

          Living in the current world, one undeniable element for achieving success is the importance of cultivating a robust network. 

          For those involved in short-term rental ventures, establishing connections within the industry is not merely a good trend; it’s a critical factor for giving their vacation rental business the boost it needs.

          Imagine engaging in heartfelt conversations with other individuals involved in property management, investment, and service provision. You gain valuable insights from their experiences and stay well-informed about industry developments. 

          Whether you’re navigating LinkedIn, exploring online forums dedicated to vacation rentals, or participating in various events and conferences, these are effective ways to establish connections.

          Networking extends beyond the mere collection of business contacts; it involves forming genuine friendships within the industry, where mutual support flows both ways. 

          So, don’t hesitate — take the initiative to reach out, share your stories, and construct a network that provides encouragement in the unpredictable realm of vacation rentals.

          Embracing Sustainability

          Given the impending challenges tied to global warming, investors spanning various sectors, vacation rentals included, are progressively embracing practices that align with environmental consciousness. 

          Travelers are also showing great interest in vacation homes pursuing sustainability, leaving little to no chance of survival to any investor who doesn’t finetune their investments to embrace the current wave of sustainability.

          To make a bold statement on sustainability in your rentals, think about eco-friendly tactics such as:

          • Solar Power Integration: Utilizing the sun’s energy trims your carbon footprint and promises prolonged cost savings. EnergySage predicts that embracing solar power can save anywhere between $20,000 and $96,000 over the lifespan of a solar panel system. 
          • Water Conservation Measures: Similar to solar power, introducing water-saving fixtures and methods isn’t only a win for the environment; it’s also a cutback on utility expenses for you as an investor.
          • Waste Recycling Initiatives: Establishing a setup for recycling waste materials goes a long way in lessening the burden on landfills and fostering a more sustainable setting.
          • Energy-Efficient Appliances: If your rentals are still equipped with cookers you bought ten years ago, it might be time to shift to newer, more efficient models. Upgrading to appliances boasting high energy efficiency ratings aids in curbing energy consumption and attracts guests with an eco-conscious bent.
          • Natural Landscaping: Opting for indigenous plants and employing landscaping techniques that demand less water and upkeep plays a part in creating a more environmentally friendly setting.

          By adopting these eco-friendly strategies, your vacation rental gains a unique footing in the market, drawing in travelers who prioritize sustainability. It’s not just a passing fad; embracing sustainability isn’t just an Earth-friendly move but also elevates your property’s general allure for guests with environmental concerns.

          Staying Adaptable in the Vacation Rental Market

          Adaptability is key in the dynamic vacation rental market. As trends evolve, guest preferences shift, and external factors impact the industry, staying flexible becomes a great competitive edge for securing survival. 

          To navigate the ever-changing vacation rental market, consider these strategies:

          • Flexible Pricing Models: Embrace dynamic pricing to adjust rates based on demand, seasonality, and market trends. 
          • Responsive Guest Communication: Establish efficient communication channels to promptly address guest inquiries, concerns, and feedback. A responsive approach builds trust and enhances the guest experience.
          • Continuous Market Research: Stay informed about market trends, emerging destinations, and evolving guest expectations. Regular market research enables you to anticipate shifts and adapt your offerings accordingly.
          • Embrace Technology Upgrades: Leverage technological advancements to streamline operations, enhance guest experiences, and stay ahead of industry innovations. Automation and smart technologies can significantly boost efficiency.
          • Invest in Education: Stay updated on the latest trends, technologies, and industry best practices. Attend relevant workshops, conferences, and webinars to continuously expand your knowledge base.

          In the ever-evolving vacation rental market, adaptability is the key to sustained success. By remaining flexible, responsive, and committed to continuous learning, you position yourself to not only survive but thrive amidst the dynamic changes in the industry.

          Conclusion 

          In the ever-evolving world of vacation rentals, vigilant monitoring of market trends, emerging destinations, and guest preferences is essential. Staying informed requires insightful vacation rental market analysis, understanding guest behaviors, and integrating cutting-edge technology.

          And remember, adaptability is paramount. The constant evolution in the vacation rental sector means that for any participant to thrive in the market, they need the flexibility to embrace the changes. 

          Armed with knowledge and a commitment to adaptability, investors can navigate challenges and position themselves for lasting success in the fiercely competitive vacation rental market. Applying strategic insights transforms the journey from uncertainty to a thriving investment venture, prepared to endure the dynamic shifts of the industry.

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              Leveraging Analytics and WiFi Data for Enhanced Rental Insights

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              Leveraging Analytics and WiFi Data for Enhanced Rental Insights:

              Discover essential strategies and principles of utilizing effective use of technology using advanced analytics and WiFi data to help enhance rental experiences and business performance.

              Home > Resources > Hosting Tips > 

              short-term-rental-wifi-analytics
              Hosting Tips

              Leveraging Analytics and WiFi Data for Enhanced Rental Insights

              Discover essential strategies and principles of utilizing effective use of technology using advanced analytics and WiFi data to help enhance rental experiences and business performance.

              • Last updated February 2, 2024

              Leveraging Analytics and WiFi Data for Enhanced Rental Insights

              In the competitive world of vacation rentals, understanding your guests and optimizing your operations are key to success. Advanced analytics and WiFi data offer a treasure trove of insights for property managers, helping to enhance rental experiences and business performance. While there are several tools in the market facilitating this, the focus here is on the broader strategies and principles that guide the effective use of such technologies.

              The Importance of Data-driven Decisions

              The use of analytics in vacation rentals is not just a trend; it’s a necessity for staying competitive. By tapping into WiFi data, property managers can gain real-time insights into guest behavior and preferences. This information is crucial for making informed decisions that can improve guest experiences and operational efficiency.

              Enhancing Guest Experience with Wifi Data

              WiFi is more than just a basic amenity for guests; it’s a rich source of insights into their preferences. Analyzing WiFi usage patterns, especially through features like StayFi’s HomePage, allows property managers to understand what guests value during their stay. This could range from streaming services to exploring local attractions. Integrating these insights can significantly enhance guest satisfaction.

              HomePage, a customizable landing page accessible upon WiFi login from StayFi, is an example of an instrumental tool in this process. It tracks guest interactions with various resources like digital guidebooks and local attraction bookings. By observing which aspects of HomePage guests frequently engage with, property managers can tailor services to align with guest interests, ensuring a more personalized and enjoyable stay experience while making as much as $20K more in upsell revenue annually per listing.

              stayfi

              Personalization Through Analytics

              Personalization is a key differentiator in the hospitality industry. Data analytics enables property managers to customize guest experiences at a granular level. From personalized welcome messages to customized recommendations for local experiences, leveraging data ensures that each guest feels uniquely catered to.

              Predictive Analytics for Operational Planning

              Beyond understanding current guest preferences, predictive analytics can forecast future trends. This foresight is invaluable for everything from staffing needs to maintenance schedules. Anticipating guest needs before they arise ensures a smooth operation and enhances the overall guest experience. The integration of specialized industry tools can significantly amplify the outcomes. A notable mention in this space is Airbitics, a platform renowned for its advanced analytics capabilities tailored for vacation rentals. By integrating data from tools like StayFi with the analytical prowess of Airbitics, property managers can obtain a more comprehensive understanding of their operational and guest-related dynamics.

              Try Airbnb Analytics

              WiFi Analytics for Targeted Marketing

              Effective marketing thrives on precision. WiFi data, when coupled with analytics, offers a deep dive into guest profiles, which is key for crafting targeted marketing campaigns. This is where something like StayFi’s vacation rental-tailored email marketing service shines. With the ability to utilize WiFi data for creating detailed guest segments, property managers can send highly personalized messages that resonate with each guest group.

              This approach not only ensures higher conversion rates but also maximizes the efficacy of marketing budgets. By harnessing WiFi analytics and proper email marketing services, vacation rental operators can craft campaigns that hit the mark every time, transforming guest data into powerful marketing strategies.

              WiFi Health and Guest Satisfaction

              Maintaining a robust and reliable WiFi network is crucial. Real-time monitoring of network health can preempt issues that might impact guest satisfaction. Quick resolutions to WiFi problems are essential in today’s digitally connected world.

              Building Brand Loyalty

              Repeat business is a cornerstone of success in vacation rentals. Analytics can identify patterns and preferences of repeat guests, allowing property managers to offer personalized experiences that encourage loyalty. Simple gestures, informed by data, like offering a favorite wine or a special discount on a future stay, can go a long way.

              Conclusion

              In conclusion, the integration of WiFi data and analytics into vacation rental management is not just about technological advancement; it’s about transforming the way properties are managed and how guests are served. While platforms like StayFi offer tools to harness this power, the key is in understanding and applying these insights to create memorable experiences, streamline operations, and drive business growth. In this rapidly evolving industry, those who leverage data effectively will find themselves at the forefront of innovation and guest satisfaction.

              For property managers looking to explore these opportunities, tools like StayFi can be a starting point. However, the journey into data-driven management is vast and requires a strategic approach, balancing technological solutions with a deep understanding of guest needs and business objectives.

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                  Portugal’s Golden Returns: Maximising Revenue on Your Vacation Rental Investment

                  invest-in-portugal

                  Whether you already own a vacation rental in Portugal, or you have plans to invest, this article will help you maximise revenue and get the most out of your investment.

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                  Portugal’s Golden Returns: Maximising Revenue on Your Vacation Rental Investment

                  invest-in-portugal
                  Airbnb Investment

                  Portugal’s Golden Returns: Maximising Revenue on Your Vacation Rental Investment

                  Whether you already own a vacation rental in Portugal, or you have plans to invest, this article will help you maximise revenue and get the most out of your investment.

                  • Last updated January 15, 2024

                  Portugal’s Golden Returns: Maximising Revenue on Your Vacation Rental Investment

                  In recent years, thriving tourism and a booming short-term rental market, combined with strong house price growth, have encouraged scores of investors to snap up a holiday let in Portugal. Perhaps you are one of them. Or perhaps you would like to be.

                  This sunny country has long been one of the most popular holiday destinations in Europe—and its appeal continues to grow. In 2023, Portugal’s tourist accommodation sector achieved a record-breaking 22.2 million guests and 59.1 million overnight stays in the first eight months of the year. A staggering 10 million overnight stays were recorded in August alone, and the average daily rate reached record highs in all regions.

                  Part of Portugal’s appeal is that it offers diverse landscapes and destinations. With its rugged coastline, charming fishing villages, and excellent amenities, the Algarve is the ideal destination for a leisurely beach holiday. On the other hand, those who prefer a city break can venture to cities like Lisbon and Porto, where they’ll find rich historical landscapes, charming culture, world-class food, and plenty of attractions.

                  Whether you already own a vacation rental in Portugal, or you have plans to invest, this article will help you maximise revenue and get the most out of your investment.

                  benoit-properties-portfolio

                  Properties with potential

                  If you’re yet to purchase a holiday let in Portugal, several factors should inform your search for the ideal property. Location is key to any profitable investment, and you’ll want to identify areas with a strong and consistent demand for short-term rental properties. Other considerations include value for money, rental yield, and growth potential.

                  Professional real estate acquisition services are a great option for both first-time investors and seasoned property moguls. By working with a reputable business, you can explore investment opportunities that have been handpicked by experts, and acquire property safely, smoothly, and efficiently.

                  Benoit Properties International offers a global real estate portfolio geared around established cities within stable and growing economies. Its experienced team provides clients worldwide with a range of investor services, covering everything from property sourcing and consultation right through to completion and effective ongoing rental management. (If you’re interested in Benoit Properties’ services, get in touch.)

                  Professional Listings

                  Once you have acquired a property and it is ready to rent, it’s time to create a professional listing. High-quality photos and engaging, accurate descriptions are vital to attracting potential guests. You should aim to showcase the best features of your property and make it stand out from other homes on the market.

                  Getting Noticed

                  Utilise short-term rental platforms such as Airbnb and VRBO to ensure your rental property reaches a wider audience. You might like to take to social media for further exposure, either through personal profiles or by setting up a business page. On platforms such as Facebook and Instagram, you can also communicate with guests and share positive reviews and feedback.

                  Local Experiences

                  Providing detailed information on the best things to do in the area will not only help attract potential guests but ensure they have an all-round positive stay, meaning they’re more likely to return.

                   

                  On platforms like Airbnb, you can partner with local businesses and offer discounts on attractions—which is another great way to differentiate your holiday let from others in the area.

                  Competitive Pricing

                  Now this is perhaps one of the most important steps to maximising revenue. Make sure your rental rates are competitive and attractive by conducting thorough market research. For this, you can rely on Airbtics data. Our Airbnb analyzer provides accurate and comprehensive insights on average nightly rates and revenue, occupancy, seasonality, and more. Simply input your city or area and you’re ready to go.

                  Start Free Trial!

                  In order to maximise occupancy, investors should adjust their rental rates depending on the season and demand.

                   

                  Don’t forget to regularly evaluate and update your strategies based on market trends.

                  Stay in to know

                  Vacation rental owners must be well informed on the latest regulations in Portugal and comply with any licensing or tax requirements.

                   

                  For instance, recent changes to Alojamento Local (AL licenses) in Portugal meant that existing vacation rental owners had to provide proof of activity, or their licenses would be cancelled. According to the new Mais Habitação (More Housing) Policy, active licenses will expire in 2030 and will be renewable every five years. Investors with vacation rentals in the country must keep on top of these kinds of changes to safeguard their investments and maximise returns.

                   

                  Overall, vacation rental owners in Portugal have a stake in a lucrative market, with the opportunity to generate substantial returns. Effective marketing, operational efficiency, and thorough market research are key to optimising your vacation rental business. By following these steps and adopting a strategic approach, you can create a high-yielding and successful rental investment in Portugal.

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                      Key Tips for Hosts on Maintaining Plumbing Excellence in Short-Term Rentals

                      plumbing excellence in short term rentals

                      Discover the pinnacle of plumbing excellence in short-term rentals! Don’t settle for less when it comes to plumbing. Choose excellence, choose peace of mind, choose success in short-term rentals. 

                      Home > Resources > Hosting Tips > 

                      Key Tips for Hosts on Maintaining Plumbing Excellence in Short-Term Rentals

                      plumbing excellence in short term rentals
                      Hosting Tips

                      Key Tips for Hosts on Maintaining Plumbing Excellence in Short-Term Rentals

                      Discover the pinnacle of plumbing excellence in short-term rentals! Don’t settle for less when it comes to plumbing. Choose excellence, choose peace of mind, choose success in short-term rentals. 

                      • Last updated January 1, 2024

                      Key Tips for Hosts on Maintaining Plumbing Excellence in Short-Term Rentals

                      The holiday rental industry has shown significant growth and impact on the economy. Property owners and managers, with their short-term rentals peppered in various locations, strive to maintain a competitive edge and cultivate strong relationships with their guests.

                      Property maintenance and professional bathtub installation play a vital role in retaining the charm of these properties and attracting more bookings. One crucial aspect of property maintenance is plumbing excellence in short-term rentals, which ensures customer satisfaction and increased rental income.

                      The Competitive World of Short-Term Rentals

                      The holiday rental industry is a fiercely competitive world, and to stand out, property managers need to focus on preserving the critical aspects of their properties, notably plumbing. Maintaining the plumbing in a short-term rental could mean the difference between a fully booked holiday house or unsatisfied guests who stay away.

                      Guest experience in your vacation rental forms the cornerstone of success. For property managers, the high season can be strenuous and time-consuming, but those who manage property maintenance efficiently ensure not only guest satisfaction but also strengthen their position in the vacation rental business.

                      Taking a Proactive Approach

                      plumbing excellence in short term rentals

                      A proactive approach to property maintenance, especially plumbing, is an essential part of the vacation rental business. By preventing potential damage and addressing maintenance issues promptly, properties remain fully functional and ready for the next guest.

                      Here are some more tips to consider:

                      • Regular Maintenance Checks

                      Scheduling regular maintenance checks is important for early detection of underlying issues. These checks cover various components of the plumbing system, from faucets to the sewer line. Regular checks ensure the property’s plumbing system remains functional and efficient.

                      • Timely Repairs

                      Following maintenance checks, if any issues are detected, they need to be repaired immediately. Delaying small repairs could lead to more expensive and extensive damage in the long run. Proactive problem-solving ensures smooth operation and helps to avoid any discomfort for your guests.

                      • Preventive Measures

                      Educating your guests about the proper usage of the plumbing system can help prevent plumbing problems. Tips like avoiding flushing foreign objects down the toilet and not pouring oil or grease down the sink can go a long way in preventing clogs or pipe damage.

                      • Installing Water-efficient Appliances

                      Installing water-efficient appliances such as low-flow toilets and shower heads can save a significant amount of water and reduce the burden on the property’s plumbing system. It not only promotes sustainability but also reduces water bills.

                      • Professional Drain Cleaning

                      From time to time, get a professional team to conduct a thorough drain cleaning. This keeps the drain system functioning at its optimal level and helps prevent any unexpected blockages that could inconvenience your guests.

                      • Quality Installations

                      Always invest in quality when installing new fixtures or appliances. High-quality installations tend to last longer, perform better, and require less frequent repairs. Employ professional plumbers for installations to ensure they are done correctly.

                      • Create a List of Trustworthy Plumbers

                      Having a list of reliable professional plumbers handy is essential. Whenever a plumbing issue arises, you want to ensure you have someone trustworthy you can call quickly to get the issue resolved.

                      • Always Have a Backup Plan

                      It’s crucial to have a contingency strategy whenever there are emergency plumbing situations. Something as minor as understanding where your central water valve is located and how to switch it off can be instrumental. Familiarity with this can avert significant water damage in incidents like a pipe rupture or severe leakage.

                      Efficient property maintenance, including plumbing, contributes to long-term success in the vacation rental industry. A well-maintained property attracts more guests, fostering a high level of guest satisfaction and continued bookings for the future.

                      The ROI of Plumbing Excellence in Short-Term Rentals

                      plumbing excellence in short term rentals

                      Investing in regular plumbing maintenance and professional services yields higher returns for your property. While it may seem costly initially, the benefits of managing your property’s plumbing efficiently far outweigh the costs. Providing well-maintained and functional accommodation, with excellent and reliable plumbing services, gears your property up for long-term success in the rental market.

                      Short-term rental property owners who invest in professional, efficient plumbing services set the stage for a thriving rental business that exceeds guest expectations.

                      The Importance of Having Professionals on the Job

                      Engaging the services of professional plumbers is strongly advised when dealing with plumbing matters. They possess the requisite skill and knowledge, alongside the ability to deliver their services efficiently and to a high standard.

                      Professionals in the field comprehend the necessity for well-kept plumbing in short-term rentals and are equipped to deal with any issues that arise, thereby helping to uphold the superior standards of your property. Enlisting the help of these experts not only conserves your time and resources, it also guarantees reliability and adherence to mandated safety regulations.

                      Making Your Mark

                      To make a mark in the competitive world of short-term rentals, property managers must prioritise excellent property maintenance, with a strong focus on plumbing. A proactive approach to plumbing maintenance, backed by a team of professional plumbers, helps maintain property excellence and guest satisfaction.

                      Stay ahead in the vacation rental industry by partnering with trusted plumbing service providers like Plumber Near Me. This investment commitment ensures your rental property continues to charm guests and garner bookings for years to come.

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                          Investing in Bali Real Estate: Buying Property in the Best Island in the World

                          investing in Bali real estate

                           The secret of the attractiveness of Bali is not only the beauty of nature and the hospitality of the local people but also a favorable environment for business and investing in real estate.

                          Home > Resources > Airbnb Investment > 

                          Investing in Bali Real Estate: Buying Property in the Best Island in the World

                          investing in Bali real estate
                          Airbnb Investment

                          Investing in Bali Real Estate: Buying Property in the Best Island in the World

                          The secret of the attractiveness of Bali is not only the beauty of nature and the hospitality of the local people but also a favorable environment for business and investing in real estate.

                          • Last updated January 1, 2024

                          Investing in Bali Real Estate: Buying Property in the Best Island in the World

                          One of the many exciting opportunities for foreigners to move to Bali is to open a business or invest in real estate, as flat prices in Indonesia are quite low. In Indonesia, foreigners have the opportunity to invest in various industries. New businesses are constantly springing up in Bali as obtaining permits to open businesses in Bali is relatively easy. As a result, more entrepreneurs and investors are looking to Bali as a key location to expand their operations.

                          investing in Bali real estate

                          Cover for National Geographic

                          The first trip to Bali will be remembered for a long time. The beauty of the landscape – mountains, tropical jungles, and coral reefs – is genuinely intoxicating. Any turn of the head and you bump into the cover of National Geographic. The overwhelming majority of tourists have a desire to capture all this somehow. It’s not for nothing that the island has been named one of the most Instagrammable places in the world.

                          When the first shock passes, a desire appears to touch this beauty, filling your leisure time. The flow of tourists and the investments it brings have allowed the island to raise its recreational infrastructure to a high level (in 2022, tourism brought about $10 billion to the Bali economy). Today, Bali offers tourists not only high-quality beach holidays but also active programs with diving, surfing, rafting, or, for example, intense excursions to religious centers and culinary presentations.

                          All this makes the island a tourist magnet that attracts residents of different countries – people come here from Europe, the USA, Australia, and all over Asia. Last year, for example, Bali received more than 2 million tourists, in the first half of this year – already more than 1.2 million. Europeans also fell in love with the island. By mid-summer, almost 100 thousand of our compatriots arrived here, 15% more than before the pandemic. The stable flow of tourists is also facilitated by the fact that Bali is not a seasonal destination but year-round.

                          To maintain tourist flow, local authorities pay great attention to infrastructure. For example, a large-scale modernization of Bali’s transport system is planned for next year. In particular, the Gilimanuk-Mengwi expressway will be built here. It will pass through the entire island, connecting it with Jakarta. The leading passenger and cargo hub between Java and Bali is also being prepared for reconstruction. And in 2025, the Paramount amusement park will be opened in Bali.

                          Another advantage of Bali that catches your eye even on your first visit is the warmth and friendliness of the local people, which is legendary. It’s not for nothing that in 2023, Bali was again recognized as the most hospitable island in the world, according to Travel + Leisure magazine.

                          From infatuation to true love

                          Tourist love for a location, as is known, often develops into “relocation.” Bali, in this sense, is no exception. The local relocation community numbers more than 100 thousand people – they include:

                          • downshifters; 
                          • digital nomads; 
                          • large investors; 
                          • representatives of small businesses from all over the world.

                          Of course, local authorities are primarily interested in attracting significant investments. For example, this year, Indonesia launched a program for issuing “golden visas” for 5-10 years. To obtain a 5-year visa, a private investor who does not plan to create a company here must invest $350,000 in shares of public companies’ bonds or place them on deposit. A visa for the same period is given for opening a company worth $2.5 million. Many foreigners invest in restaurants, travel agencies, and small hotels or register IT companies here.

                          The tax burden for businesses in Bali remains moderate. For example, an individual, regardless of citizenship, with an annual income of less than $3,400 is entirely exempt from paying income tax. For small businesses with annual revenues of less than $300,000, a preferential rate of 0.5% applies in the first half of the year. VAT is 11% of the cost of goods and services.

                          Property in Bali

                          One of the main factors influencing the attractiveness of a particular location in the world remains the issue of purchasing real estate. Considering the geopolitical situation, Southeast Asia has been seriously competing with European countries in this sense in recent years. For many people, for apparent reasons, purchasing housing in some EU countries has become a challenge. Famous Turkey and Dubai raised prices amid sharply increased demand from foreigners. Therefore, it is unsurprising that more and more of our compatriots (and not only) are paying attention to real estate in Thailand, Vietnam, and Indonesia.

                          Housing in all three countries is relatively affordable. But if realtors for a long time out of habit put Thailand first in this top three, today more and more specialists are inclined to change their opinion towards Indonesia, namely Bali. There are several reasons for this. This includes many options – from apartments to villas on the beaches. And investment attractiveness. And a growing interest in the country’s multicultural richness. And distance from regional conflicts.

                          Despite the rise in real estate prices, which have increased by 10-15% in Bali over the past five years, the cost of housing here remains, on average, lower than in many resort countries of this level. Property investment in Bali and other Indonesian islands is increasing. The most popular are villas, which range from $80 thousand (small options) to several million (for luxury houses). With good rental management, the property can be repaid in 5 years with a yield of about 10-15% per annum. The country’s real estate market is forecast to increase from $61.22 billion this year to $81.24 billion by 2028, according to consulting Indonesia-real.Estate.

                          investing in Bali real estate

                          Not just a memory

                          Considering the advantages of the island, it is not surprising that Bali regularly tops not only the main tourist rankings of the world but also, for example, ranks fourth in the world in terms of investment attractiveness.

                          For many foreigners, the benefits of moving or starting a business here outweigh potential hassles with visas, language barriers, lack of health insurance, or cultural differences. As a result, the shock of meeting this incredible place is not just a pleasant memory of a vacation in an exotic country but develops into something more serious.

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