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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.

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

investing in Bali real estate

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.

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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Is Airbnb Profitable in Malaysia? An Insider’s Quick Guide Into Malaysia’s Rental Market

An Insider’s Quick Guide Into Malaysia’s Rental Market: Is Airbnb profitable in Malaysia? Find out with essential metrics and their legality, paving the way for lucrative opportunities in 2024!

Is Airbnb Profitable in Malaysia? An Insider’s Quick Guide Into Malaysia’s Rental Market

Is Airbnb Profitable in Malaysia

Is Airbnb Profitable in Malaysia? An Insider’s Quick Guide Into Malaysia’s Rental Market

Is Airbnb profitable in Malaysia? Find out with essential metrics and their legality, paving the way for lucrative opportunities in 2024!

Is Airbnb Profitable in Malaysia? 

Key Takeaways

  • The high influx of tourists, coupled with a growing economy and affordable cost of living, makes Malaysia an enticing prospect for property investors, especially in the short-term rental market.
  • Explore the advantages and disadvantages of investing in Malaysia’s real estate market, as well as its legal framework. 
  • Dive into details of the MM2H Program in Malaysia, a gateway for foreigners seeking a second home. Discover the streamlined property purchase process and eligibility criteria.
  • Utilizing the Airbtics Dashboard, we unveil the top 6 cities in Malaysia for short-term rental investments. This article offers valuable insights for property investors seeking to maximize their returns.

Malaysia’s Airbnb Potential: Exploring Profitability, Top Markets, and Legal Insights

Located in Southeast Asia, bordering Thailand to the north and Singapore to the south, Malaysia lies majestically as a beautiful destination with its ethnic and cultural diversity and impressive biodiversity. With its slogan “Malaysia, Truly Asia” this country combines a rich diversity and allure, thus, becoming an exceptional tourist destination

As of 2022, Malaysia welcomed around 10M overnight visitors and owns one of the highest number of tourist arrivals among all Southeast Asian countries! This already gives an overview of how profitable can a rental property be in this country, opening the doors to plenty of investment opportunities for property investors looking to cater to tourist accommodations.

Are you wondering “Is Airbnb profitable in Malaysia?” – We got you! This article highlights the short-term rental profitability in Malaysia, providing essential Airbnb metrics. Additionally, we explore the advantages and disadvantages of real estate investment, the top Airbnb markets along its legal aspects in Malaysia!

Why Invest in Property in Malaysia: Pros & Cons

Short-term rentals have proven to be a lifesaver for numerous property owners and landlords as they provide lucrative sources of income, especially in popular tourist destinations like Malaysia. Investing in Malaysia can come with many advantages but we should also consider what kind of downsides investors could face when stepping into this rental market. 

Here are the pros and cons that you should keep in mind before buying an investment property in Malaysia:

Is Airbnb Profitable in Malaysia

Pros of Buying a Property in Malaysia

  • TRENDING AIRBNB DESTINATION

It’s widely known that Malaysia is a tourist destination that has gained the attention of national and international travelers over the past years. For this reason, it has been witnessing substantial growth in its Airbnb market. Consequently, this business model has become a reliable source of income for property owners looking for ways to combat rising living costs.

According to Airbnb, Malaysia is one of the trending Airbnb destinations as it recorded an increase in non-urban nights booked after the pandemic. Moreover, the country also stands out as a top winter destination worldwide by search and one of the best value destinations for Valentine’s Day! With that being said, venturing into Airbnb property investments in Malaysia presents the potential for substantial returns on investment as well as the opportunity to enjoy a fascinating culture coupled with striking natural wonders.

  • AFFORDABLE COST OF LIVING

With a relatively low cost of living and accessible housing market, Malaysia stands out as an affordable destination for investments compared to other countries in Southeast Asia. And while affluent cities like Kuala Lumpur can be more expensive, they remain a cheaper option compared to major cities in Singapore or Hong Kong.

On the other hand, the real estate demand in Malaysia is consistently growing, principally fueled by its population increase and urbanization. According to NAPIC, the average house price in Malaysia is currently around RM 355,000 ($75,992)

  • GROWING ECONOMY

While Malaysia’s economy faced many challenges due to the pandemic and a simultaneous government crisis, it’s now heading on the path to recovery. The country owns a diversified economy with a GDP of RM1,110 billion ($252 billion). It also features a strong labor market with an unemployment rate of 4%. Moreover, Malaysia ranks 1st in Southeast Asia for Foreign investment and 3rd as the most innovative upper middle-income economy!

Cons of Buying a Property in Malaysia

Aside from the pros of buying an investment property in Malaysia, let’s discuss some cons so you can know what to anticipate when investing and living in this country. Examining both sides of the coin is crucial for establishing realistic expectations!

  • PURCHASING A PROPERTY AS A FOREIGNER

While foreigners are allowed to purchase property in Malaysia, some requirements should be met. For instance, foreigners cannot own property if its value is less than RM1 million (around $215,000) or properties that are located within Malay Reserved land. The process of buying a house also involves many parties and can take up around 4 to 6 months. 

  • TROPICAL WEATHER AND CLIMATE CHANGE

Malaysia features a tropical climate, which means that most days of the year are either hot and humid or hot and dry with some rain showers. Yet, climate change heavily affects the country as in recent years it has confronted disasters like drought, landslides, soil erosions, and floods. 

The majority of its losses can be attributed to flooding, which is prone to happen during the monsoon season. Malaysia’s climate is characterized by two monsoon regimes: the Southwest Monsoon, which happens from April to September, and the Northeast Monsoon which goes from October to March.

Airbnb Regulations in Malaysia

Before starting an Airbnb business in Malaysia, knowing the essential Airbnb key metrics in your target market, such as their occupancy rates and revenue, is vital. Yet, there are also other factors that investors should consider like the legality of operating a rental property or Airbnb listing

So let’s get to the point – Owning an Airbnb or STR listing in Malaysia is legal. While the country has been looking into regulating STR, there are currently no specific rules regulating short-term rentals. However, investors should keep in mind that this business activity is subject to local council regulations in specific zones. 

Additionally, in following, Malaysia’s Tourism Tax Act 2017, Airbnb hosts are obligated to register with the Malaysian government and remit a tourist tax of RM10 per room per night. In the case that a host doesn’t comply with this requirement, it may lead to penalties, including fines of up to RM50,000 or imprisonment for up to three years.

On the other hand, the island of Penang introduced a ban on short-term rental accommodations in residential units. This ban was chosen in response to residents’ complaints about the inappropriate conduct of tourists. But, commercial properties are not part of the ban. 

MM2H Program: Buying a Property in Malaysia as a Foreigner

The MM2H Program (Malaysia My Second Home) is a government initiative designed to encourage foreign property investment in the country. This involves offering a renewable 10-year visa to foreigners who meet specific criteria. Some of the requirements include:

  • Demonstrating proof of offshore income
  • Depositing a fixed sum in a Malaysian bank as required
  • Covering immigration fees and a security bond
  • Visa holders  are required to spend a minimum of 90 days in the country throughout the year
  • Be sponsored by a Malaysian citizen (in Peninsula Malaysia, a registered MM2H agent can replace a citizen sponsor).

Just a note: Sarawak has its own rules and requirements, but applicants should be 50 years or older.

Holding an MM2H visa provides certain advantages in the property purchase process, including varying price limits and streamlined loan facilitation. The application procedure is not complicated and can be completed through the official government website

Best Place to Invest in Property in Malaysia: Top Markets for 2024

After weighing the pros and cons of investments in Malaysia, you may think this is an attractive destination to invest in STRs. But now, we should answer our most important question: Is Airbnb Profitable in Malaysia? – In a nutshell, Airbnb listings in Malaysia can be a profitable business venture that can help you generate a nice passive income and even allow you to expand your portfolio. 

For instance, a 1-BR STR apartment in Kuala Lumpur can generate up to RM54,883 ($11,746) annually as confirmed by Airbtics’ Airbnb Income Calculator.  

Now, let’s go further and explore the best places to invest in property in Malaysia:

airbtics-logo-300x87
Location Airbnb Listings Best Number of Bedrooms Airbnb Annual Revenue Median Property Price GRY
Petaling Jaya 1,658 2 bedrooms RM515,000 RM49,627 ($10,621) 9.64%
Johor Bahru 3,717 2 bedrooms RM360,000 RM41,894 ($8,966) 11.64%
Kota Kinabalu 2,145 1 bedroom RM545,000 RM40,067 ($8,575) 7.65%
Shah Alam 1,372 2 bedrooms RM380,000 RM36,684 ($7,851) 9.65%
Ipoh 1,595 2 bedrooms RM230,000 RM36,212 ($7,750) 15.74%
Malacca 3,448 2 bedrooms RM340,000 RM28,044 ($6,002) 8.25%

Location

Airbnb Dataset

  • Total Airbnb Listings: 1,658
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): RM515,000
  • Airbnb Annual Revenue: RM49,627 ($10,621)
  • Gross Rental Yield: 9.64%
  • Total Airbnb Listings: 3,717
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): RM360,000
  • Airbnb Annual Revenue: RM41,894 ($8,966)
  • Gross Rental Yield: 11.64%
  • Total Airbnb Listings: 2,145
  • Best Number of Bedrooms: 1 bedroom
  • Median Property Price (1 bedroom): RM545,000
  • Airbnb Annual Revenue: RM40,067 ($8,575)
  • Gross Rental Yield: 7.65%
  • Total Airbnb Listings: 1,372
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): RM380,000 
  • Airbnb Annual Revenue: RM36,684 ($7,851)
  • Gross Rental Yield: 9.65%
  • Total Airbnb Listings: 1,595
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): RM230,000
  • Airbnb Annual Revenue: RM36,212 ($7,750)
  • Gross Rental Yield: 15.74%
  • Total Airbnb Listings: 3,448
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): RM340,000
  • Airbnb Annual Revenue: RM28,044 ($6,002)
  • Gross Rental Yield: 8.25%
Explore More Profitable Locations in Malaysia!

A Quick Guide to Find Out the Best Locations to Invest in Airbnb

Identifying promising rental markets can be a time-consuming endeavor. That’s why it’s wise to leverage advanced resources available to property investors to hasten this process.

First, go ahead and explore real estate forums and conduct research on search engines to discover which locations are piquing significant interest among investors. This approach will allow you to sort your list. You should also utilize analytical tools to identify profitable STR markets, especially those that provide dynamic data.

Airbtics Dashboard allows users to explore a city and gain valuable insights, such as important Airbnb KPIs, to simplify their investment research. This dashboard provides users with precise data sets that showcase metrics such as average revenue, occupancy, nightly rates, seasonality, and more.

Is Airbnb Profitable in Malaysia

Sometimes, your target location might not appear in the search results, but you can easily create your own custom market.

Now that you have a clearer perspective of your target market. Feel free to experiment with the filters to identify the results that fit your needs. You can use filters to find what type of property offers the most appealing profit in your chosen area. 

One of the greatest advantages of dynamic data is that if you move and zoom in and out of your map, the data will also change accordingly.

Is Airbnb Profitable in Malaysia

You can repeat this process until you find which property type makes a sound investment choice in your target area. By comparing data across various property types, you can pinpoint the option that aligns best with your preferences and goals.

Malaysia’s Property Landscape: A Strategic Outlook for Thriving in the Airbnb Market

Malaysia stands as a captivating investment destination with its diverse cultural tapestry, booming tourism industry, and advantageous real estate market. The nation’s Airbnb landscape is thriving, presenting an enticing prospect for property investors seeking to venture into the lucrative short-term rental market.

We explored the pros and cons of investing in Malaysian property, highlighting the country’s appeal as a trending Airbnb destination. Malaysia’s affordability, coupled with its growing economy, positions it as an attractive option for property investments. However, for foreigners, the revenue may not be as captivating compared to other major investment destinations. Yet, considering Malaysia’s low cost of living, Airbnb can be a profitable investment business that can help individuals and families to sustain their economies. 

In the dynamic world of real estate investments, staying informed and leveraging available resources is crucial. Whether in Malaysia or other promising locations, we encourage property investors to conduct thorough research so as to not miss better opportunities as they must consider factors like market trends, legal requirements, and potential returns. And Airbtics is here to help you make data-driven decisions with accurate metrics! Ultimately, a well-informed approach, coupled with strategic decision-making, can unlock the doors to successful property investments!

Explore More Profitable Locations in Malaysia!

Unlock Worldwide
Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

Unlock Worldwide
Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

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Airbnb Investment All About Airbnb

Vacation Rentals Greece: Top markets for investment

Vacation Rentals Greece – Top markets for investment: Explore the allure of Greece as a prime destination for vacation rentals and fulfill your dream of owning a property in this majestic country!

Vacation Rentals Greece: Top markets for investment

vacation rentals Greece

Vacation Rentals Greece: Top markets for investment

Explore the allure of Greece as a prime destination for vacation rentals and fulfill your dream of owning a property in this majestic country!

Vacation Rentals Greece: Top markets for investment

Key Takeaways

  • Greece’s popularity as a top tourist destination, coupled with its economic growth and good real estate market conditions open the doors to great investment opportunities for property investors.
  • Learn about the pros and cons of investing in Greece’s real estate market, along with its legality. We also feature the possibility of purchasing a house for foreigners.
  • Using the Airbtics Dashboard, the top 10 cities for short-term rental investments in Greece have been revealed. This article also provides valuable insights for property investors aiming for maximum returns.

Unlocking Opportunities: Investing in Vacation Rentals in Greece

Nestled at the southern tip of the Balkan peninsula, Greece is a truly majestic destination that is widely known for its rich ancient history and cultural heritage. This country is famous for being the cradle of Western civilization, leaving a lasting legacy in terms of art, philosophy, politics and literature.

Greece always breaks records when it comes to tourism, thus, its potential as an investment destination is visible. In fact, the country welcomed over 17.4M international arrivals during the period of January-August 2023 and numbers just keep growing as we reach the end of the year! This opens the doors to plenty of opportunities for property investors looking to cater to tourist accommodations.

Moreover, the rental market’s conditions in Greece couldn’t be more favorable to investors. Aside from a robust tourist market, the country also offers affordable property prices, a strong performance in the housing market, and high rental yields year-round.

On the lookout for the perfect spot to buy a rental property in Greece? This article showcases the top cities to invest in vacation rentals in Greece, along with crucial Airbnb metrics. Furthermore, we delve into the pros & cons of real estate investment and its legal aspects in Greece!

Why Invest in Greece Real Estate: Pros & Cons

Greece possesses an undeniable beauty that is further enhanced by its heritage, Mediterranean weather and relaxing lifestyle. So a real estate investment in Greece would allow investors not only to enjoy a nice passive income but also the opportunity to enjoy the luxuries that the country offers!

Here are the pros and cons that you should consider before buying an investment property in Greece and then setting it up as a short-term rental:

vacation rentals Greece

Pros of Buying a Property in Greece

  • GREAT REAL ESTATE MARKET CONDITIONS

In recent times, the property market in Greece has been performing quite well and there’s a lot of demand, especially from foreign investors who have been attracted by the Golden Visa Program. Additionally, economic growth and improved stability coupled with a demographic increase have boosted the housing market demand.

While property prices in Europe have been on the rise, they still remain relatively affordable as you can find plenty of budget-friendly options in Greece. For instance, the average house price in Greece is currently around €2,408 per sq.m

  • SOLID RENTAL MARKET & GOOD RENTAL YIELDS

The rental market in Greece is strong and the demand has been steadily increasing. This market demand is particularly influenced by the strong tourist market, bringing high occupancy rates, a nice passive income, and good rental yields to investors. In fact, the average rental yield in Greece stands between 5% and 8%, where the top tourist areas are the most profitable areas.

Moreover, this economic activity contributed 1.65% to GDP in 2022 according to a research report presented at the Prodexpo Real Estate Conference.

  • ROBUST ECONOMIC GROWTH

Greece is one of the top Europe’s fastest-growing economies! Despite the challenges posed by the COVID-19 crisis, the country has been experiencing a solid recovery, leading to significant growth in employment opportunities! Its real GDP grew 2.2% this year and is projected to grow by 1.9% in 2024 according to the OECD economic outlook.

Cons of Buying a Property in Greece

Aside from the pros of buying an investment property in Greece, let’s discuss some cons so you can know what to expect when investing and living in this country. It’s always better to look at the two sides of each coin to properly set your expectations!

  • SEASONALITY

In most popular tourist destinations in Greece, such as the islands, the rental demand is high, yet it comes with a major downside: seasonality. There’s a high demand for rentals during the summer months, slowing down during the winter season (November – March). Of course, there is still the possibility of getting your properties booked, however, keep in mind that there’s a high chance for the listings to sit vacant during these months. 

  • BUREAUCRACY

Purchasing property in Greece can be a dream come true but it comes with a time-consuming, costly, and bureaucratic process. This involves an extensive amount of paperwork and large legal procedures. So it’s better to be mentally prepared!

And while under Greek law, foreign investors are not obligated to be represented by lawyers when buying a property, it’s recommended to designate one to avoid any major legal issues. Lawyers will help you to coordinate and plan the specific actions!

Is Airbnb legal in Greece?

Understanding the key metrics of Airbnb is crucial, but it’s equally essential to be aware of the legal aspects of being an Airbnb host in your target market. Having said that, in Greece, it is legal to operate a rental or Airbnb listing. Yet, it’s important to note that hosts must register the property in the “Register of Short-Term Property Lets”.

Find out more about Airbnb’s legality in Greece through our STR regulations guide!

Greece Property Investment Visa: Buying a Property as a Foreigner

Many of us harbor the dream of owning property in Greece, so to make our wishes come true, we like to explore diverse possibilities to achieve this. The great news is that Greece offers residency visa programs for foreign investors who meet certain requirements! Broadly speaking, there are no major restrictions when it comes to purchasing a house. But we must mention that EU citizens or residents have a notable advantage in the process.

Some documents that you must have before buying a property in Greece:

  • A passport
  • Tax Registry Number (AFM)
  • Greek visa (for non-EU residents)
  • Residence proof
  • Copy of annual tax returns
  • Government-issued ID proofs
  • Proof of obtaining health insurance in Greece

One of the most sought-after programs in Greece for non-EU citizens is the Golden Visa Program, which is a residence-by-investment visa. This visa is provided to non-EU residents who contribute over €250,000 to the Greek economy and commonly it takes around 2 months to be issued.

You can find which documentation is necessary for the Golden Visa here.

Where to Invest in Greece: Prime Locations for Short-Term Rentals

With great investment opportunities, Greece stands out as a promising destination to property investors looking to generate a good rental income. Yet, there’s still a question that we must answer: where should you invest in real estate in Greece? 

To identify the best cities for short-term rental investments in Greece, we conducted intensive research on different cities and filtered the top markets: 

airbtics-logo-300x87
Location Airbnb Listings Best Number of Bedrooms Airbnb Annual Revenue Median Property Price GRY
Fira 681 1 bedroom €500,000 €57,483 11.5%
Mikonos 825 1 bedroom €430,000 €55,724 13%
Chania 2,380 3 bedrooms €350,000 €42,544 12.16%
Paros 538 1 bedroom €220,000 €31,884 14.5%
Rhodes Town 1,095 2 bedrooms €213,000 €29,928 14.1%
Corfu Town 1,491 1 bedroom €180,000 €29,631 16.46%
Athens 10,874 2 bedrooms €180,000 €23,859 13.26%
Thessaloniki 2,910 2 bedrooms €155,000 €18,291 11.8%
Heraklion 1,359 1 bedroom €120,000 €18,159 15.13%
Kalamata 682 1 bedroom €130,000 €14,076 10.83%

Location

Airbnb Dataset

  • Total Airbnb Listings: 681
  • Best Number of Bedrooms: 1 bedroom
  • Median Property Price (1 bedroom): €500,000
  • Airbnb Annual Revenue: €57,483
  • Gross Rental Yield: 11.50%
  • Total Airbnb Listings: 825
  • Best Number of Bedrooms: 1 bedroom
  • Median Property Price (1 bedroom): €430,000
  • Airbnb Annual Revenue: €55,724
  • Gross Rental Yield: 13%
  • Total Airbnb Listings: 2,380
  • Best Number of Bedrooms: 3 bedrooms
  • Median Property Price (3 bedrooms): €350,000
  • Airbnb Annual Revenue: €42,544
  • Gross Rental Yield: 12.16%
  • Total Airbnb Listings: 538
  • Best Number of Bedrooms: 1 bedroom
  • Median Property Price (1 bedroom): €220,000
  • Airbnb Annual Revenue: €31,884
  • Gross Rental Yield: 14.50%
  • Total Airbnb Listings: 1,095
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): €213,000
  • Airbnb Annual Revenue: €29,928
  • Gross Rental Yield: 14.1%
  • Total Airbnb Listings: 1,491
  • Best Number of Bedrooms: 1 bedroom
  • Median Property Price (1 bedroom): €180,000
  • Airbnb Annual Revenue: €29,631
  • Gross Rental Yield: 16.46%
  • Total Airbnb Listings: 10,874
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): €180,000
  • Airbnb Annual Revenue: €23,859
  • Gross Rental Yield: 13.26%
  • Total Airbnb Listings: 2,910
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): €155,000
  • Airbnb Annual Revenue: €18,291
  • Gross Rental Yield: 11.80%
  • Total Airbnb Listings: 1,359
  • Best Number of Bedrooms: 1 bedroom
  • Median Property Price (1 bedroom): €120,000
  • Airbnb Annual Revenue: €18,159
  • Gross Rental Yield: 15.13%
  • Total Airbnb Listings: 682
  • Best Number of Bedrooms: 1 bedroom
  • Median Property Price (1 bedroom): €130,000
  • Airbnb Annual Revenue: €14,076
  • Gross Rental Yield: 10.83%
Explore More Profitable Locations in Greece!

Insider’s Quick Guide: Find Out the Best Places to Invest in with Airbtics

Identifying promising rental markets can be a time-consuming endeavor. That’s why it’s wise to leverage advanced resources available to property investors to hasten this process.

First, go ahead and explore real estate forums and conduct research on search engines to discover which locations are piquing significant interest among investors. This approach will allow you to sort your list. You should also utilize analytical tools to identify profitable STR markets, especially those that provide dynamic data.

Airbtics Dashboard allows users to explore a city and gain valuable insights, such as important Airbnb KPIs, to simplify their investment research. This dashboard provides users with precise data sets that showcase metrics such as average revenue, occupancy, nightly rates, seasonality, and more.

Sometimes, your target location might not appear in the search results, but you can easily create your own custom market.

Now that you have a clearer perspective of your target market. Feel free to experiment with the filters to identify the results that fit your needs. You can use filters to find what type of property offers the most appealing profit in your chosen area. 

One of the greatest advantages of dynamic data is that if you move and zoom in and out of your map, the data will also change accordingly.

You can repeat this process until you find which property type makes a sound investment choice in your target area. By comparing data across various property types, you can pinpoint the option that aligns best with your preferences and goals.

Seizing Opportunity: Greece’s Allure for Vacation Rental Investments

vacation rentals Greece

In summary, considering its record-breaking influx of international tourists and favorable rental market conditions, Greece presents abundant opportunities for those seeking to invest in vacation rentals. Whether you’re drawn to the historical allure of Athens or the tranquility of the islands, Greece not only promises financial returns but also the opportunity to indulge yourself in the luxuries offered by this remarkable country. 

Yet, while Greece’s beauty adds an extra layer of appeal, it’s crucial to consider the pros and cons discussed in this guide as well as some Airbnb startup costs. And, as you explore prime locations for vacation rentals in Greece, you should use advanced resources like the Airbtics Dashboard to set up data-driven strategies and make smart investment decisions. With its dynamic data sets and informed market insights, this tool streamlines your research process, helping you identify profitable opportunities!

Explore More Profitable Locations in Greece!

Unlock Worldwide
Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

Unlock Worldwide
Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

  • Quick Links

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Categories
Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Real Estate in Greece

Rental Arbitrage Real Estate in Greece: Set sails and embark on the journey of arbitrage real estate in Greece – a clever tactic for creating passive income without the need for significant initial capital!

Rental Arbitrage Real Estate in Greece

arbitrage real estate greece

Rental Arbitrage Real Estate in Greece

Set sails and embark on the journey of arbitrage real estate in Greece – a clever tactic for creating passive income without the need for significant initial capital!

Rental Arbitrage Real Estate in Greece

Key Takeaways

  • Explore the dynamics of Airbnb rental arbitrage in the evolving real estate scene of Greece.
  • Gain crucial knowledge on startup expenses, cash return times, and effective strategies to connect with prospective landlords for successful arbitrage in Greece.
  • Examine the procedures, regulatory framework, and potential earnings of Airbnb arbitrage in Greece, utilizing Airbtics’ Airbnb host calculator to assess the feasibility of your investment.
  • An Airbnb host can earn an average monthly profit of €1,677 while doing rental arbitrage in Athens, Greece.

Maximizing Opportunities: Exploring Rental Arbitrage in Greece for Sustainable Real Estate Ventures

Embarking on rental arbitrage proves to be a favorable method for launching a short-term rental venture, offering the advantage of starting the business without the need for a substantial initial capital investment.

And you are most likely contemplating doing rental arbitrage in Greece. It’s understandable as this Mediterranean nation has become an attractive prospect for investors, owing to its vibrant tourist sector, robust short-term rental market, and economic growth.

Yet, it’s crucial to assess whether this business model can evolve into a sustainable investment. even with a modest initial investment, we can’t turn a blind eye to the fact that you are still putting some funds at risk. Because, ultimately, the objective is to generate income rather than accumulate significant debt.

This article explores the intricacies of arbitrage real estate in Greece, covering its legal and profitability aspects, and highlighting top cities for potential subletting. Keep reading for insights into this business model!

What is Airbnb Rental Arbitrage?

Also known as subletting, this practice involves a tenant renting out their leased property to another individual. In this scenario, the tenant assumes the role of a “sublessor” by listing the residence for short-term stays on platforms such as Airbnb and VRBO

This legal business model enables you to enter the Airbnb world with no money. The income from short-term rentals can offset the long-term lease costs, allowing you to keep the remaining surplus at the end of each month. 

Is Airbnb Arbitrage Legal in Greece?

Subletting a property is a worthwhile investment idea when you know what are you getting yourself into as you need to weigh the pros and the cons of this business model. Thus, it’s important to consider the short-term rental market conditions of the city you want to target as well as its rental regulations and subletting legality in Greece. 

While short-term rentals are legal in Greece as well as the rental arbitrage model, tenants must get written consent from their landlord before renting out the property to another person.

Therefore, subletting is permissible in the absence of a contrary agreement. However, the original lessor retains responsibility towards the landlord for any faults attributable to the sub-tenant. 

How Much Profit Can You Make from Subletting a Property in Greece?

Before investing your funds in a rental arbitrage business, it is essential to comprehend the potential profitability of a short-term rental in your chosen market. For example, suppose you are focusing on Athens, a highly desirable location for Airbnb investments.

By making use of a free Airbnb calculator, you can quickly discover the profitability of rental arbitrage in the Greek capital city.

arbitrage real estate greece

Profit & Monthly Expenses in Greece

According to Airbtics’ data, you can earn up to €2,721 per month for a 2-bedroom apartment in Athens alone. So you can expect that investing in a property in Greece can secure a positive cash flow.

airbtics-logo-300x87
Average Rent Price (2 BR) Airbnb Monthly Revenue Monthly Expense Monthly Profit
€500 €2,721 €544 €1,677

Average Rent Price (2 BR)

€500

Airbnb Monthly Revenue

€2,721

Monthly Expense

€544

Monthly Profit

€1,677

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price, and the monthly expenses (€2,721 – €500 – €544 = €1,677).

airbnb arbitrage nz

Startup Cost in Greece

After getting an overview of your monthly expenses and revenue, let’s shift our focus to startup costs. Here’s the big question “How long does it typically take an investor to recover the startup cost?”. Let’s go straight to the point and take a look at this calculation:

airbtics-logo-300x87
Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
€3,000 2 months

Let’s say that the estimated startup cost for furnishings in Greece is around €2,000. To determine the total startup cost, you should add 2 months’ worth of average rent prices (€1,000). With a total startup cost of €3,000, the cash return time is calculated by dividing this by the monthly profit (€1,677). Thus, you can anticipate recovering the startup cost in approximately 2 months

If these results sound promising to you, then go ahead and look at other recommended areas for rental arbitrage in Greece.

Top 5 Profitable Cities for Arbitrage Real Estate in Greece 

Before investing in a specific Greek market, you need to research the best locations for short-term rental investments and consider factors like seasonality and local events that can affect the occupancy rates. This will help you to establish realistic expectations and guarantee your success.

Explore the top 5 cities in Greece, along with their annual revenue, monthly profit rates, cash return time, and more.

1. Corfu Town

Also known as Kerkyra, this city presents a cosmopolitan environment with plenty of leisure options and a strategic location overlooking the Ionian Sea. Moreover, the potential demand for short-term rentals, along with tourism and urban development on the island, increases the attractiveness for property investments.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR €550 €2,582 €3,100 €1,516 2 months
2-BR €750 €3,051 €3,500 €1,691 2.1 months
3-BR €900 €4,332 €3,800 €2,566 1.5 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): €500
  • Average Airbnb Revenue: €2,582
  • Startup Cost: €3,100
  • Monthly Profit: €1,516
  • Cash Return Time: 2 months

2 Bedrooms

  • Average Rent Price (Monthly): €750
  • Average Airbnb Revenue: €3,051
  • Startup Cost: €3,500
  • Monthly Profit: €1,691
  • Cash Return Time: 2.1 months

3 Bedrooms

  • Average Rent Price (Monthly): €900
  • Average Airbnb Revenue: €4,332
  • Startup Cost: €3,800
  • Monthly Profit: €2,566
  • Cash Return Time: 1.5 months

2. Rhodes Town

The enchanting Rhodes Town combines history, medieval architecture, and a lively atmosphere that could make anyone fall in love with this destination. Additionally, its striking natural landscapes, strong tourist market, and Mediterranean quality of life add attractiveness for those looking to invest in real estate in a lovely city in Greece.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR €450 €2,050 €2,900 €1,190 2.4 months
2-BR €800 €2,876 €3,600 €1,501 2.4 months
3-BR €900 €3,749 €3,800 €2,099 1.8 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): €450
  • Average Airbnb Revenue:
    €2,050
  • Startup Cost: €2,900
  • Monthly Profit: €1,190
  • Cash Return Time: 2.4 months

2 Bedrooms

  • Average Rent Price (Monthly): €800
  • Average Airbnb Revenue:
    €2,876
  • Startup Cost: €3,600
  • Monthly Profit: €1,501
  • Cash Return Time: 2.4 months

3 Bedrooms

  • Average Rent Price (Monthly): €900
  • Average Airbnb Revenue:
    €3,749
  • Startup Cost: €3,800
  • Monthly Profit: €2,099
  • Cash Return Time: 1.8 months

3. Chania

The charming city of Chania is a popular tourist destination in Crete, thanks to its distinctive history, Venetian architecture, and natural beauty. With a strong rental market, real estate market growth potential, and relatively affordable housing prices, Chania offers reasonable investment opportunities!

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR €600 €2,026 €3,200 €1,021 3.1 months
2-BR €850 €2,675 €3,700 €1,290 2.9 months
3-BR €950 €3,545 €3,900 €1,886 2.1 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): €600
  • Average Airbnb Revenue: €2,026
  • Startup Cost: €3,200
  • Monthly Profit: €1,021
  • Cash Return Time: 3.1 months

2 Bedrooms

  • Average Rent Price (Monthly): €850
  • Average Airbnb Revenue: €2,675
  • Startup Cost: €3,700
  • Monthly Profit: €1,290
  • Cash Return Time: 2.9 months

3 Bedrooms

  • Average Rent Price (Monthly): €950
  • Average Airbnb Revenue: €3,545
  • Startup Cost: €3,900
  • Monthly Profit: €1,886
  • Cash Return Time: 2.1 months

4. Thessaloniki

Nestled on the shores of the Aegean Sea, Thessaloniki is an important city that blends its ancient history with modernity. Considering its steady economic growth, the presence of diverse cultural and educational institutions, and the significant historical heritage that attracts tourists, this city is a great destination for short-term rentals.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR €450 €1,509 €2,900 €757 3.8 months
2-BR €570 €1,908 €3,140 €956 3.3 months
3-BR €700 €2,353 €3,400 €1,182 2.9 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): €450
  • Average Airbnb Revenue: €1,509
  • Startup Cost: €2,900
  • Monthly Profit: €757
  • Cash Return Time: 3.8 months

2 Bedrooms

  • Average Rent Price (Monthly): €570
  • Average Airbnb Revenue: €1,908
  • Startup Cost: €3,140
  • Monthly Profit: €956
  • Cash Return Time: 3.3 months

3 Bedrooms

  • Average Rent Price (Monthly): €700
  • Average Airbnb Revenue: €2,353
  • Startup Cost: €3,400
  • Monthly Profit: €1,182
  • Cash Return Time: 2.9 months

5. Athens

Athens is widely known for its cultural, economic, and political importance. Moreover, it attracts a great influx of tourists yearly! The tourism sector’s growth and urban development projects, coupled with relatively low living costs compared to other European cities, offer attractive investment opportunities to property investors.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR €600 €1,431 €3,200 €545 6 months
2-BR €800 €1,989 €3,600 €791 5 months
3-BR €1,100 €3,082 €4,200 €1,366 3.1 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): €600
  • Average Airbnb Revenue: €1,431
  • Startup Cost: €3,200
  • Monthly Profit: €545
  • Cash Return Time: 6 months

2 Bedrooms

  • Average Rent Price (Monthly): €800
  • Average Airbnb Revenue: €1,989
  • Startup Cost: €3,600
  • Monthly Profit: €791
  • Cash Return Time: 5 months

3 Bedrooms

  • Average Rent Price (Monthly): €1,100
  • Average Airbnb Revenue: €3,082
  • Startup Cost: €4,200
  • Monthly Profit: €1,366
  • Cash Return Time: 3.1 months

How to Find Landlords for Airbnb Rental Arbitrage?

Investing in Airbnb rental arbitrage can be an excellent strategy for generating passive income. Yet, it may not be easy to find a landlord who permits subletting on Airbnb because only a few of them know about the process of rental arbitrage or are not fond enough of this business model. Thus, to convince a landlord, you must involve proactive and strategic efforts to explore this mutually beneficial opportunity. We also recommend using our rental arbitrage email template to add more creativity to your proposal!

Here are some ways that you can use to identify potential landlords for your Airbnb arbitrage in Greece:

  • Real Estate Platforms: Search for real estate platforms in NZ such as xe.gr, spitogatos, spiti24, or other websites to explore available rental properties and contact landlords.
  • Real Estate Agents: Establish connections with real estate agents who possess insights into possible rental properties in your target market as they can connect you with potential landlords.
  • Social Media & Networking: Don’t be shy and join online forums and communities centered around real estate in your chosen location. Platforms like BiggerPockets can offer valuable networking opportunities.

Additionally, ensure your interactions with landlords are conducted professionally and be ready to address any concerns they may have about subletting. 

Seizing Golden Opportunities: The Lucrative Landscape of Rental Arbitrage in Greece

arbitrage real estate greece

In summary, rental arbitrage real estate in Greece presents an enticing opportunity for investors looking to enter the short-term rental market with minimal initial capital investment. The potential profitability of subletting in Greece, especially in cities like Athens, Chania, Rhodes Town, Corfu Town, and Thessaloniki, underscores its viability as a lucrative venture. 

But to succeed in this venture, identifying landlords willing to engage in Airbnb subletting is crucial. Utilizing real estate platforms, collaborating with agents, and leveraging social media can aid in establishing connections and presenting the benefits of this mutually advantageous arrangement.

As you delve into the rental arbitrage world, reliable platforms like Airbtics can be valuable in evaluating market conditions, estimating potential revenue, and making informed investment decisions. This kind of comprehensive data can help entrepreneurs navigate the dynamic landscape of short-term rentals in Greece, ultimately contributing to the success and sustainability of their Airbnb ventures!

Explore More Profitable Locations in Greece!

Unlock Worldwide
Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

Unlock Worldwide
Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

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Airbnb Occupancy All About Airbnb

Unlock Airbnb Occupancy Rates Worldwide! Explore Any Market’s Insights.

Instantly See An Average Airbnb Occupancy Rate

Discover 30+ Airbnb statistics of any city worldwide!

What Is Occupancy Rate?

It is the percentage of nights booked among the available nights on an Airbnb listing. How can you find the average occupancy rate of your market? 

Simply enter an address above, and it’ll show you the average occupancy rate of any address in the world for free! The average occupancy rate is calculated by 10-20 similar listings around the input addresses. 

“70% is considered a good year-round occupancy rate.”

As a short-term rental data company, we’ve been tracking Airbnb listing occupancy rates and bookings since 2019. This allows us to have comprehensive statistics of listings. 

You will be taken to the “calculator” page – a totally free resource! For deeper insights into your city, you should sign up to the platform and use the “Market Research” feature. This dashboard will unlock comprehensive data in your city. It’s all at your fingertips! 

Those statistics includes:

4 Interesting AirBNB Occupancy Rate Facts

Are you thinking of investing on short-term rentals or already have a few? These are some Airbnb Occupancy rate statistics that can be useful for you to know to get more bookings. 

Summary: Take professional photos, get more reviews – at least 5 reviews, be a super host to maximise your occupancy rates! 

Average Airbnb Occupancy Rates (US)

City Active Airbnb Listings Average Airbnb Occupancy Rate (2023) Peak Season
Fort Collins 2,533 68% July
Seattle 5,791 76% July
Memphis 1,488 58% April
Milwaukee 1,552 60% July
Ontario, NY 632 56% July
Phoenix 7,600 60% March
Austin 10,779 61% April
San Antonio 5,290 57 % July
Newark, NJ 1,480 60% July
Houston 10,263 56% July
Fresno 1,830 54% July
Chicago 6,634 66% July
New York 10,048 72% June
Boston 2,690 81% October
Gainesville, FL 871 56% August
Nashville 8,137 62% April
Miami 8,533 61% March
Jacksonville 8,874 59% March
Orlando 1,351 64% March
Denver 4,595 77% June
Pittsburgh, PA 2,195 63% July
Wichita, KS 683 60% July
Kansas, MO 3,433 61% July
Tampa 3,820 62% March
Raleigh 1,504 63% July
Baltimore 1,769 58% June
Dallas 5,025 59% June
Birmingham, AL 1,043 57% July
Cleveland 1,511 59% June
Atlanta 6,224 56 % July
Philadelphia 5,304 56.5 % July
Washington 4,702 75 % April
Colorado Springs 2,530 70 % July
Fort Lauderdale 4,528 62 % March
Los Angeles 15,731 66 % July
Las Vegas 1,776 59 % April
Reno 942 61 % July
Greensboro 797 60 % April
Sacramento 2,298 61 % July
Detroit 1,469 51 % July

                                                                                                             

                                                                                                             

Average Airbnb Occupancy Rates (Canada)


City Active Airbnb Listings Average Airbnb Occupancy Rate (2023) Peak Season
Toronto 12,637 77 % September
Calgary 5,290 77 % July
Quebec 1,443 76 % July &August
Edmonton 2,954 69 % July
Montreal 7,605 74 % August
Vancouver 5,478 85 % June-August
Winnipeg 1,588 69 % July
Kitchener 793 69 % September
Victoria 1,267 79 % July & August
London, ON 830 66 % September
Halifax 1,238 84 % July & August
Sudbury 352 67 % April
Kingston 453 70 % August
Ottawa 2,248 69 % July

                                                                                                             

                                                                                                             

Average Airbnb Occupancy Rates (Australia)

 
 
City Active Airbnb Listings Average Airbnb Occupancy Rate (2023) Peak Season
Adelaide 3,782 73 % April
Perth 5,312 87 % April
Canberra 1,738 73 % April
Newcastle 1,125 62 % January
Melbourne 20,327 66 % April
Brisbane 3,901 85 % July
Sydney 11,732 79 % April
Darwin 1,110 69 % August
Wollongong 855 64 % January
Hobart 1,057 72 % April
Toowoomba 303 75% April
Central Coast 2,598 43 % January
Ballarat 510 59 % April
Greater Bendigo 484 60 % April

                                                                                                             

                                                                                                             

Average Airbnb Occupancy Rates (UK)

 

City Active Airbnb Listings Average Airbnb Occupancy Rate (2023) Peak Season
London 4,000 87 % June & July
Edinburgh 6,857 91 % June- September
Liverpool 3,376 57 % April
Manchester 2,338 66 % July
Glasgow 2,329 76 % August
Leeds 1,465 65 % July
York 1,730 66 % July
Birmingham 2,762 61 % July
Nottingham 1,212 61 % September
Bristol 2,299 77 % September
Sheffield 1,114 61 % July
Cardiff 1,880 60 % July
Aberdeen 725 70 % July
Belfast 1,446 74 % July

                                                                                                             

                                                                                                             

Average Airbnb Occupancy Rates (Top 50 Global Cities)


City, Country Active Airbnb Listings Average Airbnb Occupancy Rate (2023) Peak Season
Amsterdam, Netherlands 5,778 96 % April- September
Athens, Greece 11,223 79 % June & September
Atlanta City, USA 6,224 56 % July
Auckland, New Zealand 5,026 77 % December
Austin, Texas 10,779 61% April
Bangkok, Thailand 14,532 55 % December
Barcelona, Spain 13,829 88 % April, July & October
Batumi, Georgia 4,564 49 % August
Beyoglu, Turkey 7,891 61 % October
Bogota, Colombia 11,249 54 % July
Bordeaux, France 4,369 82 % September
Berlin, Germany 7,754 87 % June & September
Brooklyn, New York 8,858 79 % June
Budapest, Hungary 9,741 79 % July
Buenos Aires, Argentina 24,453 70 % April

                                                                                                             

Why do you need to know the Airbnb Occupancy Rate?

Market Research: Starting on your Airbnb venture? Knowing the occupancy rate will steer you in the right direction. The two most important factors are 1) choosing the perfect location with the highest average occupancy rate and 2)  determining the right number of bedrooms because you can’t change these two once you commit to a property.

Airbnb Occupancy Rate

Get more bookings: Knowing the peak season allows you to maximize your profit by charging higher fees. During low season, you can consider giving a discount for long-term rates, or it might be the right timing for you to use it as your vacation home! 

9 Simple Tips To Boost Your Airbnb Occupancy Rate

1. Choose the Right Airbnb Market

Finding the ideal Airbnb city or market is crucial in optimizing your occupancy rate. Look for popular destinations and analyze their Airbnb demand. These can positively affect your property’s visibility and desirability.

2. Search for the Best Submarket

Identify the most lucrative submarkets within your Airbnb city. A good Airbnb submarket includes the best neighborhoods, property types, and number of bedrooms. Targeting the specific preferences of potential guests in different areas can help you tailor your Airbnb to meet their needs and attract more bookings.

3. Add Some Amenities

Adding basic amenities such as towels, toilet paper, and wifi just meets guests’ expectations. However, going for an extra mile differentiates you from the rest. This may include adding a few small fancy Airbnb amenities, an Airbnb hot tub, or a swimming pool.

4. Furnish your Rental

Don’t skimp on quality furnishings because they will make your rental stand out. A thoughtfully designed and comfortable Airbnb is more likely to receive positive reviews and repeat bookings. Target the needs of your guests then create a welcoming environment conducive to longer stays.

5. Take Nice Photos

First impressions matter. Photos are worth a thousand words. Lure your guests with your property’s features captured in the best light. Showcase each room from different angles and center your rental’s unique aspect. While you can pick up some Airbnb photo tips, opting for a professional photographer can significantly enhance the visual appeal of your listing.

6. Boost Your Listings Visibility

Optimize your listing for Airbnb and search engine algorithms. Use relevant keywords in your title and description to target potential guests. Regular calendar updates and quick responses to guests’ inquiries also improve your search ranking.

7. Enable Airbnb Instant Book

Active Airbnb Instant Book for a seamless booking experience. This attracts spontaneous travelers. Plus, Airbnb often prioritizes and boosts the listings with this feature. 

8. Aim To Be An Airbnb Superhost

Aspire to have a Superhost status by giving exceptional hospitality. The rewards can be outstanding. These include increased visibility that can lead to higher occupancy rates and earnings.

9. Consider Professional Airbnb Managers

Consider hiring professional Airbnb managers who specialize in optimizing property listings. Aside from doing the marketing side of your rental, these experts can also handle tasks from the pricing strategy to communication with guests. You can also hire them for property upkeep and maintenance. However, these services come at a cost usually with a commission-based pricing structure. 

In the below, I’ve compiled the occupancy rates of major cities in the US, UK, Australia, and Canada. (There’s also a bonus of 50 global cities too!)  

 

Categories
All About Airbnb How to Start an Airbnb

Starting An Airbnb Business: How to Launch in Just 5-7 Months

Starting an Airbnb business? Let this guide be your trusted companion. Launch your hosting adventure with confidence, and success awaits in 5-7 months!

Starting An Airbnb Business: How to Launch in Just 5-7 Months

starting an airbnb business

Starting An Airbnb Business: How to Launch in Just 5-7 Months

Starting an Airbnb business? Let this guide be your trusted companion. Launch your hosting adventure with confidence, and success awaits in 5-7 months!

Starting An Airbnb Business: How to Launch in Just 5-7 Months

Starting an Airbnb business is a lucrative venture. But the question remains, “How should I begin?” 

Believe it or not, a lot of people have dreamed and yet struggled to have an Airbnb startup. 

Why is it so? They spend most of their time dreaming. They forget that dreams alone won’t turn the key in the door to success.

So in this article, we’ll provide you with a definitive roadmap for starting your own Airbnb! We’ll provide you with a few milestones to encourage you to finally build your rental empire.

Continue reading this because your journey to Airbnb is about to begin!

starting an airbnb business

Starting an Airbnb Business for Homeowners

A property sitting vacant is a wasted earning opportunity. Imagine how much cash flow it will bring via Airbnb. In this section, we’ll show the preliminary steps that homeowners can take for an Airbnb startup.

Looking for an Airbnb property? You may skim this or go directly to the next part! 

1. Check the Airbnb Demand and STR Regulation in your area

Before starting an Airbnb business, research first whether there is a substantial demand in the location of your property. Understanding the local Airbnb demand is a fundamental step in ensuring the success and profitability of your venture. This will come in handy in the next Step.

Your research does not end with demand. You should also check the local Airbnb regulations! These have become a hard pill to swallow. But fret not. Many Airbnb hosts have managed to navigate this. This is the reason why short-term rentals persist despite regulations.

Check the website of your local government as these regulations vary depending on the jurisdiction. While you should read the entire regulation, I encourage you to check the provision on zoning restrictions. Sure, you may have a vacant property, but it may be legally prohibited to be a short-term rental. 

2. Dig Deeper into Your Airbnb Market

a. Look at Direct Competitors

For a solid head start, check out how your “direct” competitors are doing.  Search for Airbnb listings similar to your property and arrange them by ratings.

Study them closely even before officially starting your own Airbnb. Observe and take note of their strengths. Look for goldmines by reading their guest reviews. What do guests love about their rentals? Then, replicate or even enhance those features when applying them on your own property. 

b. Understand Your Audience

As you go through Steps 1 and 2a, you’re starting to get a picture of your target audience. These are the demographics that your rental may attract. 

This mainly depends on your location. Is your property near outdoor recreational areas? Then, you have an active and younger audience. Is it right smacked in a financial district? You have business professionals right there. Ski and beach areas? Then, you’ll have family and bigger groups as your guests!

By aligning your rental with the desires of your target demographic, you enhance the overall experience for your guests and increase its attractiveness. Take note of this as this may become useful in Steps 3 and 4. 

Starting an Airbnb Business for First-Time Investors

If you have been saving up to start your own Airbnb, then this section is for you!  This part will focus on finding the most profitable Airbnb properties. And based on the hundreds of investors that Airbtics has talked to, this process usually takes less than a month.

1. Set Your Budget

How much are your savings and the portion you’re willing to allocate for property purchase? This should be clear from the get-go as you will be aware of your financial capabilities. Setting a realistic budget to start your own Airbnb provides a framework for your decision-making. This includes the location, the size, and the type of investment property. 

Think of your budget as the gasoline for your investment. The higher you have, the further it can take you. But if your savings are kind of short, don’t worry! There are, in fact, short-term rental lenders who can help you finance your Airbnb

2. Research and Buy Airbnb Property

a. Look For The Best Airbnb Cities 

Even if you’re a first-time Airbnb investor, you already know that location matters in real estate. In Airbnb investing, start with a list of cities with high tourist traffic. And I’m sure you already have one!

In fact, you may have already studied the different guest demographics in those areas. You know that professionals would be your guests in urban cities. Then, you’d be hosting exchange students and artists in university towns. If there’s an amusement park, you’d be having multi-generational guests with kids!

But the key question is, “Which city on your list offers the best return on investment?” In this case, we will try to maximize the budget that you’ve set in Step 1. 

Let’s use the widely accepted standard to assess ROI. Gross rental yield is determined by dividing the average annual revenue of an Airbnb city by its median property price. 

Market’s Gross Rental Yield =

(Average Airbnb Annual Revenue / Median Property Price)

Median property prices are available on online realtors like Redfin. But to access the average annual revenue of any Airbnb city, you can always rely on the Airbtics Dashboard. Then, you can tabulate these cities on your list according to the highest gross rental yield!

Of course, you should also consider the local Airbnb regulations. As we have mentioned before, these vary depending on the city. So, it’s best to check the local government website for specific details. 

While I encourage you to read the whole regulations, specifically look if there’s a night cap in your chosen city. This simply means that there’s a limit on the number of available nights for Airbnb bookings. Hence, this may also put a “cap” on your earnings. 

b. Buy An Airbnb Property

According to a 2023 report by the National Association of Realtors, buyers typically spent 10 weeks searching and visited a median of five homes. The length will depend on your budget (covered in Step 1) and how you do a property search. 

You’ve already identified the city. But have you considered whether you should buy a condo or a house? And how many rooms should your property have? 

Before doing a property search, why not answer those two questions first? The best property type and property size for Airbnb depend on your chosen Airbnb city. You can find yours by following our guides below:

Once these two are clear, you can now confidently look for properties on the following real estate websites:

NORTH AMERICA

UNITED KINGDOM

EUROPE

AUSTRALIA

As we have said, Airbtics users usually find a profitable Airbnb property in less than a month. But home purchase typically takes another 50 days on average.

3. Consider Adding Amenities

Getting booked is among the initial challenges of an Airbnb startup. In fact, it is the most crucial. Why would guests book you? You’re an inexperienced host, competing with the rest who already has a proven track record.

A way to address this is by offering as many amenities as you can! Equip your Airbnb startup with the amenities that your guests are used to. Sometimes, a simple wifi connection can be enough. If your rental is in a cold climate, consider investing in a reliable heating system. Humid area? Then, air conditioners can provide a cool sanctuary from the heat outside. 

Got an extra budget? You may even consider adding a hot tub for Airbnb, and you’ll be surprised by how it can attract guests. Do you have an empty backyard? Then, a swimming pool for short-term rental is also worth exploring.

4. Furnish Your Airbnb

When starting your own Airbnb, furnishing is the time to use your creative flare! While some may enjoy dolling up an empty space, I know others who don’t! From buying items to placing them in your Airbnb, this Step can be a bit stressful.

Remember when we said that you had to understand your audience? This will be really helpful for this. When you assess your guests’ needs and preferences, you can easily decide what to include in your rental. Of course, you have to cover the basics first! And here’s the Airbnb startup cost for that.

When dolling up your rental, consider not only individual items but also their collective harmony. Envision how these pieces interact with various flooring or wall colors to create a cohesive and visually pleasing arrangement. If furnishing isn’t really your cup of tea, you can always hire an interior decorator to cover this.

5. Create an LLC

Creating a limited liability company (LLC) sure has a lot of perks. For one, it allows you to open a dedicated bank account for your Airbnb business. It’s just one of the basics of any business, separate its finances from your own.

Moreover, creating an LLC provides an additional layer of security, especially valuable for first-time Airbnb hosts.  

In the unpredictable area of hosting, unforeseen circumstances such as lawsuits or Airbnb-related debts can arise. An LLC becomes a safeguard, entitling you with “limited liability” in legal disputes. This shields your personal assets, offering a protective measure against unforeseen challenges.

6. Insure Your Investment Property

For first-time hosts, getting insurance is a smart and essential move. Imagine having spent a huge money on a property that will be exposed to a lot of potential risks. You might say that you already have a homeowners insurance. But sadly, your rental is not covered since you’re using it as an Airbnb business. 

All Airbnb hosts are automatically protected by AirCover, the company’s own insurance. However, it doesn’t cover damages from wear and tear and natural calamities. So, you need to have additional insurance for property damage caused by unforeseen events. This ensures that your investment is properly safeguarded. 

As a first-time host, the peace of mind that comes with insurance is invaluable. This allows you to focus on delivering an exceptional guest experience without the constant worry of unexpected financial burdens.

7. Comply with Legal Requirements in Your Area

Have you researched the Airbnb regulations in your area? The initial stage to legally start your own Airbnb is the registration of your rental. Depending on the jurisdiction, the local government may require you to do one or more of the following:

  • Obtain a Business License
  • Obtain a Business Permit
  • Pass Building and Housing Standards 
  • Secure Special Permits

As we have said, different cities have different regulations. And some may even require you to obtain a business license BEFORE listing your property on Airbnb. To ensure compliance with the legal requirements in your area, read the Airbnb regulations available on your local government’s website. You can also find the detailed process on how to apply as well as other documents that they may require. 

8. List Your Property on Airbnb

Your Airbnb debut isn’t complete until you create a listing! It means guests can now find and book your rental on the platform. Now put your property out there to make some money! Read our article on Airbnb listings for a step-by-step guide!

9. Decide Between Professional or Do-It-Yourself Airbnb Management

Technically, you’re done with all the steps in starting an Airbnb business. But it’s time to decide how your rental will be managed.

Airbnb hosting is mainly about interacting with guests. This covers responding to booking inquiries and other guests’ concerns promptly and professionally. Aside from this, you will also have to look after your property. Is it cleaned between guest stays? On top of routine maintenance, you will also need to address emergency repairs. 

The list of hosting tasks can go longer than this. We understand that this may be overwhelming, especially for hosts just starting an Airbnb business. Some may respond to guests’ needs with a smile on their faces. But it’s normally fine if you don’t see yourself enjoying such interactions. 

In fact, you can outsource the day-to-day and routine tasks to a professional. Airbnb property managers who can bring their expertise to help your rental grow. Of course, they come with a cost. 

Aside from paying them via commission, you’re actually throwing the keys to the car. You’re relinquishing them the control over your property.

These are actually the things you need to consider. And if you decide to hire an Airbnb manager, research well as not all of them can provide good quality service. 

What Are Airbnb Taxes?

Before starting an Airbnb business, hosts should know the potential taxes on their rental income. Tax regulations vary by location, so hosts must check with local authorities or consult a tax professional for specific guidance. Common taxes that hosts may encounter include:

  • Income Tax
  • Sales Tax
  • Occupancy Tax
  • Sales Tax
  • Tourist Development Tax
  • Value Added Tax

The applicable taxes and their rates vary significantly from one city to another. It’s best to familiarize yourself with the specific tax regulations in your location to ensure compliance with local laws and regulations.

Transform Your Dream Into A Reality

Starting an Airbnb business is an exciting venture that holds potential for both financial success and personal fulfillment. Sure, dreaming about the possibilities can be a good start. This article is more than just a source of inspiration. It equips you with an actionable roadmap to transform these dreams into a reality!

So get the ball rolling! Use the insights provided here to navigate the challenges, make informed decisions, and carve your niche in the competitive Airbnb market. 

As you take each step, remember that the journey is as just important as the destination. Embrace the learning curves and celebrate small victories earned along the way!

Got a property for Airbnb? Then get accurate return on investment by using the most powerful Airbnb Calculator!

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Airbnb Rental Arbitrage All About Airbnb

A beginner’s guide to Airbnb Arbitrage

A beginner’s guide to Airbnb Arbitrage: 4 steps to have a successful first Airbnb arbitrage property. What is Airbnb arbitrage? You rent a property from a landlord, furnish it, and list it on Airbnb. You earn more than what you pay to the landlord.

A beginner’s guide to Airbnb Arbitrage

Airbnb arbitrage

A beginner’s guide to Airbnb Arbitrage

Airbnb Arbitrage is amazing. You can start this as a side hustle, but you can scale this up to build enough wealth for you to achieve financial freedom.

You can start your first rental arbitrage unit in a matter of 1-2 weeks as long as you make right progress. Here are 3 key tasks you need to complete. 

Airbnb Arbitrage is amazing. You can start this as a side hustle, but you can scale this up to build enough wealth for you to achieve financial freedom. 

What is Airbnb arbitrage? You rent a property from a landlord, furnish it, and list it on Airbnb. You earn more than what you pay to the landlord. You can start this without your own property and with very little capital.

Is it legal? Mostly, yes. Agree with your landlord. Check Airbnb regulations in your city. Many cities allow Airbnb. 

You can start your first rental arbitrage unit in a matter of 1-2 weeks as long as you make right progress. Here are 3 key tasks you need to complete. 

1. Market research (Tip: Use Airbnb analytics to finish this in a few minutes) 

2. View properties & sign the contract (Tip: Use secret software to get access to landlord-approved properties for rent.)

3. Furnishing

Start with market research

Find the goldmine areas. Find an area with abundant available long-term rentals in the market. At the same time, travelers should love this area. In other words, It is a property with a huge pricing gap between long-term and short-term rental. 

Via market research, you must get an answer for the 3 things. 1) What’s the short-term rental rule there? 2) What area has some serious pricing gaps? 3) What type of properties? 

For example, when I started it in Liverpool, UK, I found there’s no city-wise regulation, but it depends on which building. Some buildings are strictly for residential but not all. The downtown area has very high short-term rental demand compared to long-term rental. I found out small Studio & 1-bed type flat in well well-maintained building is the most popular on Airbnb in the area.  

Regulation 

What sort of regulation does your city have? Is there a limit on how many days you can rent it out as a short-term rental? Do you need to get a short-term rental permit? Clear this out. Search on Google, and check out the local government website. 

Find high-demand neighborhoods 

You can use the heatmap feature from the Airbtics app. The intensity of color represents the guest’s demand. Therefore, the dark red areas have a high occupancy rate. This will show you the Airbnb hotspots. In my case, the downtown area is the only hotspot with many short-term rentals available. Find out rent estimate of neighbourhoods. 

Type of property

On the right side of the map, you can see the top-performing Airbnb listings in the area. Check out some of them and see which type of properties you could go after. 

You can think in terms of the number of bedrooms (e.g. Studio vs 2 bedrooms) and type of properties (e.g. high-rise, modern). 

Acquire your first property

Acquiring the first property may sound challenging, but your first landlord may accept your offer too. Most landlords are not too keen on short-term rentals. Their three main concerns are complaints from their neighbors, excessive wear and tear, and unable to collect monies from you.

The best way is to meet the landlords face to face and talk with them. Many landlords are open to this. Building the trust is the key. 

Here are a few pointers to convince the landlord for your first property.

  • Offer 5-10% higher rental fee 
  • Offer a higher amount of deposit 
  • Pay a few months rent in advance 
  • Monthly report on their property on property damages 
  • You’ll use noise monitoring software to quickly address situations in which neighbors may feel uncomfortable 
  • You’ll sign up for short-term rental insurance 

If you are in the US, then try out a software called Airvana. On their website, you can find properties for rent that the landlords have already approved for rental arbitrage. Airvana use Airbtics data to power their market intelligence side. 

Furnish your property

If this is your first property, start lean, and invest in better items as you make more money. For a 1-bedroom apartment, you can furnish a basic listing under $2,000. Providing a kitchen isn’t a must. 

For an Airbnb property, you need to choose your theme and color palette. This will drastically improve your listing on photos and attract short-term guests. 

Here are examples of basic amenities you need

  • Refrigerator 
  • Dining table and chairs 
  • Sofa 
  • Bed frame 
  • Mattress 
  • Pillows 
  • Linen 
  • Closet organizer 
  • Decorative items
furnish your property

We have an in-depth article on the Airbnb startup cost. Here’s an example of how you can furnish your listing from scratch with $3,300.

Publish an Airbnb Listing

It’s surprisingly easy to publish a listing. One can publish a listing in 30 minutes. Once you publish, potential guests can see your listing and start booking. 

The most important part here is to use really nice pictures of your Airbnb. If it’s your first time, hire a professional who has done this before in your area. Your listing doesn’t have any reviews so guests can only rely on your listing’s picture before making a reservation. 

 

 Start with renting out a room, not the entire property

Are you a student or just got your first job? One idea for you. Rent an entire property with 3-4 bedrooms. You can live in one of the rooms and rent out the rest of the rooms on Airbnb. I did this personally when I was living in London in the UK. My Airbnb guests covered my entire rent. When my parents visited me in London, I just blocked the calendars on Airbnb so that I could use the entire property for my family. This would have been not possible with a long-term tenant. 

This also taught me good lessons on how to operate an Airbnb business efficiently. 

Categories
Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage NZ

Airbnb Rental Arbitrage NZ: Explore the world of Airbnb rental arbitrage in NZ – a savvy strategy for generating passive income without the need for substantial upfront capital!

Airbnb Rental Arbitrage NZ

airbnb arbitrage nz

Airbnb Rental Arbitrage NZ

Explore the world of Airbnb rental arbitrage in NZ – a savvy strategy for generating passive income without the need for substantial upfront capital!

Airbnb Rental Arbitrage NZ

Key Takeaways

  • This blog navigates you through the process of Airbnb rental arbitrage in the evolving landscape of New Zealand.
  • Uncover essential insights on startup costs, cash return times, and how to find potential landlords for successful arbitrage in NZ.
  • Delve into the process, regulations, and potential profits of Airbnb arbitrage in NZ, and use Airbtics’ Airbnb host calculator to evaluate your venture’s viability.

Airbnb Arbitrage in NZ: A Guide to Profitable Short-Term Rentals with Minimal Initial Investment

Rental arbitrage emerges as an ideal way to start a short-term rental business without the need for large upfront capital as you won’t have to buy a property straight away. 

Since you came into this blog, we assume that you are thinking of doing rental arbitrage in New Zealand. This island country became quite the catch for investors thanks to its strong tourist market, solid short-term rental market, and flourishing economy.

Yet, it’s important to consider if this type of business would turn into a viable investment. Why? Because even if you won’t invest a large amount of money, that doesn’t mean you won’t be putting some funds at stake. And the primary goal is to generate income rather than incur significant debt.

In this article, we delve deeper into the entire process of Airbnb rental arbitrage in NZ, its legality, and profitability, along with some of the top cities to consider subletting in. Keep reading to find out more about this business model.

What is Airbnb Rental Arbitrage?

Rental arbitrage, also known as subletting, is the practice in which a tenant rents out the property they have leased to another person. In this case, the tenant becomes a “sublessor” by listing the dwelling for short-term use on platforms like Airbnb and VRBO.

This is a legal business model that allows you to begin your venture into the Airbnb world with no money. The short-term rental income can help you cover the long-term lease on the property, allowing you to keep the remaining surplus at the end of each month after paying the long-term lease. 

Is Airbnb Arbitrage Legal in NZ?

Wondering if rental arbitrage is worth it? Subletting a property is a worthwhile investment idea. But first, you need to know what are you getting yourself into. It’s important to consider the short-term rental market conditions of the city you want to target as well as its rental regulations and subletting laws in NZ. 

Short-term rentals are legal in New Zealand. However, lessors and sublessors must review the rental rules set by the local councils in NZ, as certain regions may require property registration and obtaining resource consent. 

Doing rental arbitrage is also legal in NZ, but tenants must speak with their landlord a get written consent before renting out the property to another person. The conditions for this will also depend on whether the rental will be a holiday or long-term:

  1. If a tenant sublets their residence on a long-term basis, they must sign a written residential tenancy agreement with the subtenant. This sub-tenancy agreement follows standard tenancy rules of the Residential Tenancies Act
  2. For holiday sublets as they are not covered by the Act, no residential tenancy agreement is needed, but the landlord’s consent is still required.

Subletting a property without the landlord’s permission is considered an unlawful act that must be avoided. Otherwise, this may result in a financial penalty of up to $1,000 and potential compensation owed to the landlord.

How Much Profit Can You Make from Subletting a Property in New Zealand?

Before investing your money in a rental arbitrage business, it’s crucial to understand the potential profit of a STR in your target market. For instance, let’s say you’re targeting Auckland, particularly its central business district, a sought-after location for Airbnb investment. 

By making use of a free Airbnb calculator, you can quickly discover the profitability of rental arbitrage in New Zealand.

airbnb arbitrage nz

Profit & Monthly Expense in New Zealand

According to Airbtics’ data, you can earn up to $4,595 per month for a 2-bedroom apartment in Auckland CBD alone. So you can expect that investing in a property in New Zealand can secure a positive cash flow.

airbtics-logo-300x87
Average Rent Price (2 BR) Airbnb Monthly Revenue Monthly Expense Monthly Profit
$2,500 $4,595 $919 $1,176

Average Rent Price (2 BR)

$2,500

Airbnb Monthly Revenue

$4,595

Monthly Expense

$919

Monthly Profit

$1,176

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price, and the monthly expenses ($4,595 – $2,500 – $919 = $1,176).

airbnb arbitrage nz

Startup Cost in New Zealand

After getting an overview of your monthly expenses and revenue, let’s shift our focus to startup costs. Here’s the big question “How long does it typically take an investor to recover the startup cost?”. Let’s go straight to the point and take a look at this calculation:

airbtics-logo-300x87
Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
$7,000 6 months

Let’s say that the estimated startup cost for furnishings in New Zealand is around $2,000. To determine the total startup cost, you should add 2 months’ worth of average rent prices ($5,000). With a total startup cost of $7,000, the cash return time is calculated by dividing this by the monthly profit ($1,176). Thus, you can anticipate recovering the startup cost in approximately 6 months

If these results sound promising to you, then go ahead and look at other recommended areas for rental arbitrage in New Zealand.

Top 3 Profitable Locations for Airbnb Arbitrage in NZ

Prior to making an investment in a specific New Zealand market, you need to research the best locations for short-term rental investments and consider factors like seasonality and local events that can affect the occupancy rates. This will help you to establish realistic expectations and guarantee your success.

Explore other top cities aside from Auckland in New Zealand, along with their annual revenue, monthly profit rates, cash return time, and more.

1. QUEENSTOWN

Queenstown is a popular destination for tourists with breathtaking surroundings, featuring crystal-clear lakes, snow-capped mountains, and lush landscapes. For this reason, it has become an attractive area for investors targeting the hospitality and short-term rental sectors.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR $2,383 $4,484 $6,766 $1,204 6 months
2-BR $3,250 $7,324 $8,500 $2,609 3 months
3-BR $3,683 $9,502 $9,366 $3,919 2 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): $2,383
  • Average Airbnb Revenue: $4,484
  • Startup Cost: $6,766
  • Monthly Profit: $1,204
  • Cash Return Time: 6 months

2 Bedrooms

  • Average Rent Price (Monthly): $3,250
  • Average Airbnb Revenue: $7,324 
  • Startup Cost: $8,500
  • Monthly Profit: $2,609
  • Cash Return Time: 3 months

3 Bedrooms

  • Average Rent Price (Monthly): $3,683
  • Average Airbnb Revenue: $9,502
  • Startup Cost: $9,366
  • Monthly Profit: $3,919
  • Cash Return Time: 2 months

2. WELLINGTON

The capital city of New Zealand presents a compelling option for real estate investment due to its different strengths. Wellington is a political and administrative hub but also offers plenty of recreational activities and a thriving cultural scene that attracts visitors. Additionally, is home leading educational institution that attracts a high influx of students.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR $1,603 $2,518 $5,206 $411 13 months
2-BR $2,297 $3,383 $6,594 $409 16 months
3-BR $2,816 $4,592 $7,632 $858 9 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): $1,603
  • Average Airbnb Revenue:
    $2,518
  • Startup Cost: $5,206
  • Monthly Profit: $411
  • Cash Return Time: 13 months

2 Bedrooms

  • Average Rent Price (Monthly): $2,297
  • Average Airbnb Revenue: $3,383
  • Startup Cost: $6,594
  • Monthly Profit: $409
  • Cash Return Time: 16 months

3 Bedrooms

  • Average Rent Price (Monthly): $2,816
  • Average Airbnb Revenue: $4,592
  • Startup Cost: $7,632
  • Monthly Profit: $858
  • Cash Return Time: 9 months

3. CHRISTCHURCH

Christchurch stands as an attractive destination for real estate investment, shaped by its healthy real estate market, great quality of life, and economic growth. Additionally, the city underwent significant rebuilding efforts after the earthquakes in 2010 and 2011. This has led to new infrastructure developments and modernization which makes the city more appealing to investors.

airbtics-logo-300x87
Number of Bedrooms Average Rent Price Average Airbnb Revenue Startup Cost Monthly Profit Cash Return Time
1 BR $1,040 $1,999 $4,080 $559 7 months
2-BR $1,712 $2,430 $5,424 $232 23 months
3-BR $2,123 $3,167 $6,246 $411 15 months

Number of Bedrooms

Airbnb Rental Arbitrage Dataset

1 Bedroom

  • Average Rent Price (Monthly): $1,040
  • Average Airbnb Revenue: $1,999
  • Startup Cost: $4,080
  • Monthly Profit: $559
  • Cash Return Time: 7 months

2 Bedrooms

  • Average Rent Price (Monthly): $1,712
  • Average Airbnb Revenue: $2,430
  • Startup Cost: $5,424
  • Monthly Profit: $232
  • Cash Return Time: 23 months

3 Bedrooms

  • Average Rent Price (Monthly): $2,123
  • Average Airbnb Revenue: $3,167
  • Startup Cost: $6,246
  • Monthly Profit: $411
  • Cash Return Time: 15 months

How to Find Landlords for Airbnb Rental Arbitrage?

Investing in Airbnb rental arbitrage can be an excellent strategy for generating passive income. Yet, it may not be easy to find a landlord who permits subletting on Airbnb because not many of them know about the process of rental arbitrage or are not fond enough of this business model. Thus, to convince a landlord, you must involve proactive and strategic efforts to explore this mutually beneficial opportunity. We also recommend using our rental arbitrage email template to add more creativity to your proposal!

Here are some ways that you can use to identify potential landlords for your Airbnb arbitrage in NZ:

  • Real Estate Platforms: Search for real estate platforms in NZ such as Realestate.co.nz, OneRoof.co.nz, Trademe.co.nz, or other websites to explore available rental properties and contact landlords.
  • Real Estate Agents: Establish connections with real estate agents who possess insights into possible rental properties in your target market as they can connect you with potential landlords.
  • Social Media & Networking: Don’t be shy and join online forums and communities centered around real estate in your chosen location. Platforms like BiggerPockets can offer valuable networking opportunities.

Additionally, ensure your interactions with landlords are conducted in a professional manner and be ready to address any concerns they may have about subletting. 

Let’s wrap up: Should you do Airbnb Arbitrage in NZ?

Airbnb rental arbitrage presents a great opportunity for those seeking to enter the short-term rental industry in New Zealand without the need for significant upfront capital. The potential for passive income is evident, and the country’s strong tourist market, flourishing economy, and solid short-term rental market contribute to its appeal to investors.

So should you go ahead and do Airbnb arbitrage in NZ? Well, this is a question that only you can answer after weighing all the pros and cons of this business model as well as its profitability. New Zealand is a market full of opportunities that can certainly deliver you rewarding financial results.

To succeed in rental arbitrage, it’s essential to learn about local regulations, follow legal requirements, and strategically connect with landlords open to this mutually beneficial arrangement.

Moreover, thorough research is necessary to understand the market conditions. Thus, modern analytics tools like Airbtics Dashboard can provide investors like you with data-driven insights that can help the success of your short-term rental venture!

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Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

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Best 14 Australian Suburbs to Invest: Unveil the Top Rental Markets

Best 14 Australian Suburbs to Invest: Unveil the Top Rental Markets: Explore the best Australian suburbs for property investment with valuable insights into Airbnb metrics. Learn more here!

Best 14 Australian Suburbs to Invest: Unveil the Top Rental Markets

best australian suburbs to invest

Best 14 Australian Suburbs to Invest: Unveil the Top Rental Markets

Explore the best Australian suburbs for property investment with valuable insights into Airbnb metrics. Learn more here!

Best 14 Australian Suburbs to Invest: Unveil the Top Rental Markets

Key Takeaways

  • Australia is regarded as a prime destination for property investors, driven by its resilient economy, solid tourist market, and high-demand STR market.
  • Learn about the pros and cons of investing in Australia’s thriving real estate market, along with essential legal considerations. 
  • Using Airbtics’ Airbnb Income Calculator, the top 13 suburban areas for short-term rental investments in Australia have been unveiled, providing valuable insights for property investors aiming for maximum returns.

Discover the Best Australian Suburbs to Invest in: A Paradise for STR Accommodations

Nestled between the Indian Ocean and the Pacific Ocean, we can find the beautiful country of Australia, a destination that features a unique diversity of flora and fauna. This destination is known for its breathtaking landscapes and iconic sites like the Sydney Opera House, the Great Barrier Reef & Ayers Rock (Uluru). 

We can’t deny that Australia is a piece of paradise in this immense world! No wonder it attracts a large influx of tourists annually. There were around 6.4 million visitor arrivals for the year ending August 2023 as confirmed by the Tourism Australia platform. 

And things just get better for investors looking to cater to STR accommodations. Its solid tourist market, coupled with high economic development, demographic growth, and solid housing market performance, Australia stands out as an enticing investment destination. And while the major metropolitan areas draw special attention from investors, there are plenty of suburbs that are worth targeting.

Searching for the ideal location to purchase a rental property in Australia? This article highlights the best Australian suburbs to invest in rental properties, along with important Airbnb metrics. Additionally, we explore the benefits of real estate investment and its legality in Australia!

Why Invest in Australia Property: Pros & Cons

Australia presents a perfect blend of rich Aboriginal heritage with a modern society and outstanding natural beauty. This country certainly is a hotspot for property investments, allowing investors to earn a nice income stream through short-term and long-term rentals.

Here are the top reasons why you should consider buying an investment property in Australia:

best australian suburbs to invest
  • TOP-RANKING STR MARKET IN OCEANIA

Millions of tourists visit Australia each year due to its natural wonders, iconic attractions, and rich biodiversity. Thanks to this, there’s a steady demand for short-term rentals, especially in popular tourist destinations like Sydney. In fact, we must highlight that it’s one of the top trending travel spots for international travel according to Airbnb.

Besides, Australia ranks among the top STR markets in Oceania with the highest occupancy rate. Moreover, you can also find some of the best Airbnb property management companies, teaming up with them will allow you to enjoy more freedom to explore this haven!

  • RESILIENT REAL ESTATE MARKET PERFORMANCE

Although house prices are rising in Australia, the market remains relatively stable and strong. The economic resilience and demographic increase the country has been experiencing plays an important role in the demand for housing. Moreover, there are plenty of great real estate financing options that investors can take advantage of!

While the real estate market in major and popular metropolitan areas is expensive, there are many high-growth suburbs in Australia where you can find more friendly budget options. These suburban areas also offer good rental yields and have high occupancy rates that guarantee a nice return on investment to investors.

  • ROBUST ECONOMIC DEVELOPMENT

Australia is usually regarded as an attractive country for living, working, studying, and investing. Thus, it consistently ranks among the top countries when it comes to economy. The country has one of the highest GDP per capita in the world and also a top among the world’s largest 20 economies!

Australia stands as a thriving business hub, drawing investment from multinational corporations, startups, and research organizations globally! The country offers a business-friendly environment, characterized by favorable regulations and low taxes. 

Thanks to its favorable economic conditions, Australia features a strong job market that has consistently maintained relatively low levels of unemployment. Currently, the unemployment rate in Australia is 3.7% as of October 2023.

Cons of Buying a Property in Australia

Aside from the pros of buying an investment property in New Zealand, let’s discuss some cons so you can know what to expect when investing and living in this country. It’s always better to look at the two sides of each coin to properly set your expectations!

  • REAL ESTATE: HIGH ENTRY COST

Australia’s real estate market remains stable and experiences consistent growth, but it also comes with its challenges and downsides. In this regard, we must mention that average housing market values across major cities in Australia are not particularly cheap. 

Moreover, entering and exiting the property market poses some financial challenges. Aside from the property prices, there are other high entry costs involved such as the stamp duty, legal fees, and real estate agent fees, Hence, investors should carefully evaluate the upfront investment needed.

  • AUSTRALIA IS VULNERABLE TO CLIMATE-RELATED DISASTERS

Located in the southern hemisphere and the Pacific Ring of Fire, Australia is quite susceptible to natural disasters such as bushfires, floods, and cyclones. The region is characterized by being seismically and volcanically active.

Is Airbnb legal in Australia?

While understanding Airbnb’s essential metrics is vital, it’s equally important to know about the legality of Airbnb in your target area. In general, it’s legal to become an Airbnb host in Australia! Yet, you should keep in mind that each state has its own STR regulations. Broadly speaking, most cities require hosts to register their properties to obtain a license for operating.

If you are a foreign investor or a temporary resident seeking to acquire property in Australia, then you will be required to obtain FIRB approval. Otherwise, proceeding with a purchase without approval may result in a variety of sanctions. Additionally, foreigners should keep in mind that the property must be new or they must acquire a vacant lot to build a new property. 

In the case of rental arbitrage, while it is legal, tenants are not permitted to sublease the property without the consent of the owner or landlord. 

It is extremely crucial to adhere to council zoning laws, otherwise, you can face consequences such as monetary penalties and being registered in the Exclusion Register.

Best Australian Suburbs to Invest in STR Properties

Australia offers promising investment opportunities to property investors, but a significant question remains: where is the ideal suburban area for real estate investment? 

To identify the best suburbs for short-term rental investments in this country, we conducted intensive research on different regions and filtered the top areas of each of them: 

airbtics-logo-300x87
Location Airbnb Listings Best Number of Bedrooms Airbnb Annual Revenue Median Property Price (2 BR) GRY
Bateau Bay, Central Coast, NSW 77 4 bedrooms A$1,100,000 (4 BR) A$172,820 15.72%
Woonona, Wollongong 36 4 bedrooms A$1,485,000 (4 BR) A$143,556 9.67%
Port Kembla, Wollongong 15 3 bedrooms A$809,000 (3 BR) A$135,678 16.77%
Battery Point, Hobart 120 2 bedrooms A$770,000 (2 BR) A$89,360 11.61%
Sandy Bay, Hobart 212 3 bedrooms A$895,000 (3 BR) A$87,810 9.81%
The Entrance, Central Coast, NSW 152 3 bedrooms A$850,000 (3 BR) A$79,816 9.39%
Middle Ridge, Toowoomba 13 3 bedrooms A$770,000 (3 BR) A$76,181 9.89%
Newtown, Geelong 47 2 bedrooms A$845,000 (2 BR) A$70,449 8.34%
East Toowoomba 57 3 bedrooms A$680,000 (3 BR) A$68,637 10.01%
North Bendigo 31 3 bedrooms A$480,000 (3 BR) A$63,369 13.20%
East Geelong 23 2 bedrooms A$695,000 (2 BR) A$60,240 8.67%
Golden Square, Greater Bendigo 33 3 bedrooms A$496,000 (3 BR) A$53,552 10.80%
Golden Point, Ballarat 22 3 bedrooms A$562,500 (3 BR) A$51,624 9.18%
Central Ballarat 66 2 bedrooms A$490,000 (2 BR) A$51,183 10.45%

Location

Airbnb Dataset

Bateau Bay, Central Coast, NSW

  • Total Airbnb Listings: 77
  • Best Number of Bedrooms: 4 bedrooms
  • Median Property Price (4 bedrooms): A$1,100,000
  • Airbnb Annual Revenue: A$172,820
  • Gross Rental Yield: 15.72%

Woonona, Wollongong

  • Total Airbnb Listings: 36
  • Best Number of Bedrooms: 4 bedrooms
  • Median Property Price (4 bedrooms): A$1,485,000
  • Airbnb Annual Revenue: A$143,556
  • Gross Rental Yield: 9.67%

Port Kembla, Wollongong

  • Total Airbnb Listings: 15
  • Best Number of Bedrooms: 3 bedrooms
  • Median Property Price (3 bedrooms): A$809,000
  • Airbnb Annual Revenue: A$135,678
  • Gross Rental Yield: 16.77%

Battery Point, Hobart

  • Total Airbnb Listings: 120
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): A$770,000
  • Airbnb Annual Revenue: A$89,360
  • Gross Rental Yield: 11.61%

Sandy Bay, Hobart

  • Total Airbnb Listings: 212
  • Best Number of Bedrooms: 3 bedrooms
  • Median Property Price (3 bedrooms): A$895,000
  • Airbnb Annual Revenue: A$87,810
  • Gross Rental Yield: 9.81%

The Entrance, Central Coast, NSW

  • Total Airbnb Listings: 152
  • Best Number of Bedrooms: 3 bedrooms
  • Median Property Price (3 bedrooms): A$850,000
  • Airbnb Annual Revenue: A$79,816
  • Gross Rental Yield: 9.39%

Middle Ridge, Toowoomba

  • Total Airbnb Listings: 13
  • Best Number of Bedrooms: 3 bedrooms
  • Median Property Price (3 bedrooms): A$770,000
  • Airbnb Annual Revenue: A$76,181
  • Gross Rental Yield: 9.89%

Newtown, Geelong

  • Total Airbnb Listings: 47
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): A$845,000
  • Airbnb Annual Revenue: A$70,449
  • Gross Rental Yield: 8.34%
  • Total Airbnb Listings: 57
  • Best Number of Bedrooms: 3 bedrooms
  • Median Property Price (3 bedrooms): A$680,000
  • Airbnb Annual Revenue: A$68,637
  • Gross Rental Yield: 10.01%
  • Total Airbnb Listings: 31
  • Best Number of Bedrooms: 3 bedrooms
  • Median Property Price (3 bedrooms): A$480,000
  • Airbnb Annual Revenue: A$63,369
  • Gross Rental Yield: 13.20%
  • Total Airbnb Listings: 23
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): A$695,000
  • Airbnb Annual Revenue: A$60,240
  • Gross Rental Yield: 8.67%

Golden Square, Greater Bendigo

  • Total Airbnb Listings: 33
  • Best Number of Bedrooms: 3 bedrooms
  • Median Property Price (3 bedrooms): A$496,000
  • Airbnb Annual Revenue: A$53,552
  • Gross Rental Yield: 10.80%

Golden Point, Ballarat

  • Total Airbnb Listings: 22
  • Best Number of Bedrooms: 3 bedrooms
  • Median Property Price (3 bedrooms): A$562,500
  • Airbnb Annual Revenue: A$51,624
  • Gross Rental Yield: 9.18%
  • Total Airbnb Listings: 66
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): A$490,000
  • Airbnb Annual Revenue: A$51,183
  • Gross Rental Yield: 10.45%
Explore More Profitable Locations in Australia!

Spotting Potential Airbnb Rental Markets with Airbtics: An Insider’s Quick Guide

Identifying promising rental markets can be a time-consuming endeavor. That’s why it’s wise to leverage advanced resources available to property investors to hasten this process.

First, go ahead and explore real estate forums and conduct research on search engines to discover which locations are piquing significant interest among investors. This approach will allow you to sort your list. You should also utilize analytical tools to identify profitable STR markets, especially those that provide dynamic data.

Airbtics Dashboard allows users to explore a city and gain valuable insights to simplify their investment research. This dashboard provides users with precise data sets that showcase metrics such as average revenue, occupancy, nightly rates, seasonality, and more.

Australia Airbnb

Sometimes, your target location might not appear in the search results, but you can easily create your own custom market.

Now that you have a clearer perspective of your target market. Feel free to experiment with the filters to identify the results that fit your needs. You can use filters to find what type of property offers the most appealing profit in your chosen area. 

One of the greatest advantages of dynamic data is that if you move and zoom in and out of your map, the data will also change accordingly.

You can repeat this process until you find which property type makes a sound investment choice in your target area. By comparing data across various property types, you can pinpoint the option that aligns best with your preferences and goals.

Wrapping Things Up: Australian Suburbs as Promising Real Estate Investment Destinations

best australian suburbs to invest

Australia stands out as a sought-after destination for real estate investment, as it offers a stable property market that is experiencing steady growth. However, the country’s expensive housing market and its vulnerability to natural disasters are factors that investors should be aware of.

Thus, the best Australian suburbs to invest in come up as a more affordable alternative to investors with a tight budget as their property markets present cheaper options. Of course, these markets still provide nice rental yields and high occupancy rates! 

Although there are numerous lucrative cities and towns in Australia, it is essential to recognize the inherent risks involved in investing in a market without a comprehensive analysis of all Airbnb KPIs. So we recommend conducting meticulous market research using short-term rental analytics tools for precision, such as Airbtics. We are committed to assisting investors like you in making informed, data-driven decisions!

Pro Book
Deeper STR Insights. Broader Investment Opportunities.

Want to go deeper, broader, and faster? Supercharge your Airbnb Investment by accessing the most in-depth Airbnb & real estate insights with our exclusive STR report.

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Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

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Find unsaturated neighborhoods with the highest occupancy history.

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Where to Invest in Geelong, AU: Earn Up to A$39,399 with a 78% Occupancy Rate

Where to Invest in Geelong, AU: Earn Up to A$39,399 with a 78% Occupancy Rate: Uncover the top Airbnb markets and leverage Airbtics’ data analysis for optimal listing locations!

Where to Invest in Geelong, AU: Earn Up to A$39,399 with a 78% Occupancy Rate

where to invest in Geelong

Where to Invest in Geelong, AU: Earn Up to A$39,399 with a 78% Occupancy Rate

Looking where to invest in Geelong? Uncover the top Airbnb markets and leverage Airbtics’ data analysis for optimal listing locations!

Where to Invest in Geelong, AU: Earn Up to A$39,399 with a 78% Occupancy Rate

Key Takeaways

  • With a booming economy, relatively affordable housing, and great living conditions, Geelong emerges as a dynamic STR investment destination.
  • Airbnb hosts in Geelong have the potential to earn an annual revenue of A$39,399 with a 78% occupancy rate for a 1-bedroom property, as confirmed by Airbtics’ Airbnb income calculator.
  • With the aid of Airbtics’ Dashboard, we’ve pinpointed the top 6 markets for short-term rental investments in Geelong, offering invaluable insights for property investors aiming for optimal returns.

Prime Investment Opportunities: Where to Invest in Geelong for Maximum Returns

The charming port city of Geelong is located at the eastern end of Corio Bay and the left bank of Barwon River, featuring scenic beaches and panoramic ocean views. This destination is a delightful place to visit and considering its great quality of life, it’s also a great city for anyone who wants to settle there.

Furthermore, Geelong is a great destination for investors looking to begin their short-term rental journey and also for those who want to expand their portfolio. Yet, before investing in a short-term rental property in Geelong, it’s crucial to conduct an Airbnb data analysis to gain a comprehensive understanding of the rental markets available. This analysis will help you identify the most profitable opportunities based on important key metrics.

If you’re searching for where to invest in a rental property in Geelong, this article provides insights into the top areas for short-term rental investments. You will also find Airbnb metrics for each area, offering valuable information to help you make informed investment decisions!

Why should you consider buying an investment property in Geelong?

Geelong features a breathtaking landscape and a lively cultural scene! And it also presents an intriguing market for property investors looking to generate a nice income stream from short-term lettings. 

Check out some of the top reasons why you should invest in rental properties in Geelong:

  • RELATIVELY AFFORDABLE HOUSING MARKET

One of the biggest advantages of investing in Geelong real estate is that the region may present more budget-friendly property options compared to other major Australian cities. This affordability facilitates investors’ entry into the market, enabling them with the potential to obtain positive cash flow.

Currently, the average property price in Geelong is A$920K for houses and A$697K for units, which is a relatively lower value if we consider the markets of metropolitan areas like Sydney and Melbourne. However, if buying a house is not possible yet, you can try rental arbitrage in Geelong as an alternative as rent prices are more affordable! As of November 2023, the average rent price is currently around A$500. 

  • BOOMING ECONOMY & POPULATION GROWTH

Geelong owns a diversified and strong economy that keeps evolving with plenty of industries that help the region present a solid job market. Some of its major sectors are education, tourism, health, manufacturing, construction, and innovation & research.

Moreover, over the past decade, the region has experienced robust job growth that has rapidly transformed Geelong’s economy. This also helped the region to enjoy positive demographic growth, paving the way for a promising future!

  • WELCOMING COMMUNITY & HIGH STANDARD OF LIVING

As the second largest city in Victoria, Geelong offers an attractive lifestyle with a plethora of local amenities such as dining options, shopping centers, sports facilities, and healthcare services. There’s also no lack of recreational activities as well as events and festivals happening throughout the year.

On top of that, Geelong is also known for its friendly community and numerous community venues encourage social interaction, which can quickly make you feel at home. 

  • ENJOY THE COASTAL SCENERY & CULTURAL ACTIVITIES!

Looking for a destination where you can enjoy natural wonders and fascinating cultural activities? Then look no more because Geelong has everything you’re looking for!

This port city provides striking vistas and a charming environment, contributing to an enjoyable experience. With coastal settings and scenic beaches, visitors and locals alike can engage in outdoor activities such as surfing, boating, or just enjoy a relaxing day on the beach. 

Geelong also features a wide range of cultural options, from museums to art galleries and theaters. The city also hosts events and festivals throughout the year, allowing visitors and residents to enjoy plenty of cultural and social activities.

Moreover, the scenic beauty and cultural events in Geelong draw a high influx of overnight visitors, opening up possibilities for profitable short-term rentals!

Is Airbnb Profitable in Geelong?

Curious about the profitability of STR investments in Geelong? Put your concerns to rest as Airbtics is here to confirm their worth! Geelong, with its natural beauty, cultural events, and festivals, consistently draws a substantial number of visitors, presenting ample opportunities for lucrative holiday lettings.

Let’s have an overview of Geelong’s Airbnb market – According to Airbtics’ Airbnb host calculator, an Airbnb host can obtain annual revenue of A$39,399 with a steady occupancy rate of 78% for operating a 1-bedroom property in Geelong. 

Geelong proves to be an outstanding investment destination, but it’s essential to bear in mind that factors like the location of your property and seasonality can impact your potential income. Thus, it’s vital to make use of an Airbnb research tool to pinpoint promising investment opportunities. Additionally, we recommend having a vacation rental checklist to boost your future guest experiences!

Where to Invest in Geelong: Top Airbnb Markets 2023

Before making impulsive decisions, it’s recommended to research Airbnb’s important KPIs to identify optimal areas for establishing your listing and guaranteeing the success of your rental property in Geelong. Why? Because the profitability of short-term rentals fluctuates based on the particular location, leading to varying revenue levels.

Go ahead and check out the best suburbs in Geelong to invest in rental properties:

airbtics-logo-300x87
Location Airbnb Listings Best Number of Bedrooms Median Property Price Airbnb Annual Revenue GRY
Newtown 47 2 bedrooms A$845,000 (2 BR) A$70,449 8.34%
East Geelong 23 2 bedrooms A$695,000 (2 BR) A$60,240 8.67%
Belmont 50 3 bedrooms A$685,000 (3 BR) A$48,655 7.10%
Geelong West 62 2 bedrooms A$763,000 (2 BR) A$47,068 6.17%
Grovedale 22 2 bedrooms A$580,000 (2 BR) A$36,640 6.26%
Highton 29 2 bedrooms A$512,500 (2 BR) A$35,432 6.91%

Location

Airbnb Dataset

  • Total Airbnb Listings: 47
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): A$845,000
  • Airbnb Annual Revenue: A$70,449
  • Gross Rental Yield: 8.34%
  • Total Airbnb Listings: 23
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): A$695,000
  • Airbnb Annual Revenue: A$60,240
  • Gross Rental Yield: 8.67%
  • Total Airbnb Listings: 50
  • Best Number of Bedrooms: 3 bedrooms
  • Median Property Price (3 bedrooms): A$685,000
  • Airbnb Annual Revenue: A$48,655
  • Gross Rental Yield: 7.10%
  • Total Airbnb Listings: 62
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): A$763,000
  • Airbnb Annual Revenue: A$47,068
  • Gross Rental Yield: 6.17%
  • Total Airbnb Listings: 22
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): A$585,000
  • Airbnb Annual Revenue: A$36,640
  • Gross Rental Yield: 6.26%
  • Total Airbnb Listings: 29
  • Best Number of Bedrooms: 2 bedrooms
  • Median Property Price (2 bedrooms): A$512,500
  • Airbnb Annual Revenue: A$35,432
  • Gross Rental Yield: 6.91%
Explore More Profitable Locations in Greater Geelong!

How to Find Profitable Airbnb Locations for Your Listings?

While there are plenty of Airbnb startup costs that investors should consider, it’s important to set up the listing in the right locations. Thus, finding profitable markets is a must.

Identifying promising rental markets can be a time-consuming endeavor. That’s why it’s wise to leverage advanced resources available to property investors to hasten this process.

Additionally, you should consider delving into real estate forums and conducting thorough research on search engines to discover which locations are piquing significant interest among investors. This approach will allow you to sort your list and gain a clear understanding of the cities that are worthy of your focus. Plus, we encourage investors like you to utilize analytical tools to identify lucrative Airbnb markets, especially those that can provide dynamic data.

Airbtics Dashboard allows users to explore a city and gain valuable insights to simplify their investment research. This dashboard provides users with precise data sets that showcase metrics such as average revenue, occupancy, nightly rates, seasonality, and more.

But don’t take just our word for it, go ahead and take a look at Simon, a satisfied Airbtics customer, who ventured into a new Airbnb market, ultimately achieving higher profitability than his previous one!

Australia Airbnb

Sometimes, your desired location might not show up in the search results, but there’s no need to fret! You can easily create your custom market.

Now that you have a clearer perspective of your target market, feel free to experiment with the filters to identify the results that fit your needs. You can use filters to find out what type of property offers the most appealing profit in your chosen area. 

One of the greatest advantages of dynamic data is the fact that by moving and zooming in and out of your map, the data will also change accordingly.

You can repeat this process as often as you need to figure out which type of property makes a sound investment choice in your target area. By comparing data across various property types, you can pinpoint the option that aligns best with your preferences and goals.

Unveiling Lucrative Investment Horizons in Geelong with Airbtics

To sum up, Geelong offers captivating investment opportunities with its harmonious mix of scenic beauty, cultural dynamism, and thriving economic landscape. The city’s relatively affordable housing market, along with its growing population, establishes Geelong as an attractive destination for property investors aiming for favorable financial returns. 

As the region continues to evolve, Geelong is emerging as a dynamic investment destination where the combination of coastal charm and economic vitality creates an attractive proposition for real estate investors.

Discovering where to invest in rental properties in Geelong is just the beginning of your investment journey. For those considering investing in short-term rentals in Geelong, Airbtics’ data analysis highlights the city’s potential for profit. Utilizing Airbnb research tools like the Airbtics dashboard is fundamental to identifying lucrative markets and optimizing listing locations. Discover the perfect spots and realize your investment dreams now!

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