Category: Case Studies

Enhancing Student Education and Cultural Diversity Through Airbnb Guest Interactions

Post author By Guest
Post date June 20, 2023

Dubai: The Ultimate Destination for Property Investments in Arjan and Travel Experiences. The main holidays of the Emirates tourists and investors should know about.

Discover how Airbnb fosters cultural diversity and enhances student education through enriching interactions, experiences, and networking opportunities.

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Discover how Airbnb fosters cultural diversity and enhances student education through enriching interactions, experiences, and networking opportunities.

September 18, 2023

Airbnb is not only about finding a place to stay when you travel anymore. In fact, it can be so much more. Airbnb student housing is a way to broaden views on cultural diversity and learn many new things. Hence, the correlation between education and Airbnb is a point of discussion for many. If you are eager to learn how this method of housing helps in student education, follow us in the next part of the article. For more insights and professional assistance on the topic, visit EssayPro.

Airbnb & Learning: Do They Go Together?

When traveling, it’s no secret that all you want to do is relax. That would mean no homework and no additional writing assignments. But college students don’t always have that freedom.

Luckily, they may ask for professional help. Instead of going through those hurdles alone, they can use some writing services. Students may think, “such services can write a report for me” and save time and effort. And once you have this out of the way, you start to truly enjoy your newly found free time.

But it doesn’t mean that the learning should stop. On the contrary, a university student learns new things even if he/she is not in school. That is where Airbnb housing comes into play.

Benefits of Hosting International Students

There are plenty of ways to combine traveling and education. Airbnb student housing is one of them. It can be beneficial and educational for both the student and the one hosting. From learning something new about the other’s country to earning some extra income and creating unforgettable memories, here are some advantages of using Airbnb.

Cross-cultural Understanding

Many college or university students that choose to use an Airbnb for their travels or exchange programs want to learn as much as possible about the culture and place where they’ll be staying. And this is the perfect way for the host to learn about theirs, too.

Airbnb, in popular culture, is not only about renting your place. Most of us don’t even realize that what is normal for us may be perceived entirely differently by others. But it gives the chance to learn and educate.

A Fresh Perspective of the Surroundings

Is enhancing student education with Airbnb guest interactions really possible? Definitely! By taking in a student, hosts get to show them not only their culture, but also give them a first-hand experience of the day-to-day happenings in the place. And this way, students get to learn outside their classes.

Showing them around will also help the host see the area through someone else’s eyes. You’d be surprised how different a place seems when a stranger points out its beauty.

Extra Income/Extra Knowledge

The primary goal of renting a place is always getting some extra income. When hosts put up their places on Airbnb, they primarily want to earn more money. But for students, it’s the other way around.

By traveling and staying in an Airbnb, students get knowledge that they otherwise can’t obtain in a classroom lesson. They ask the host to point them to some museums or landmarks, show them some traditional food, music, etc.—there are plenty of ways for them to broaden their views.

Networking

It’s a small world. With the advancements in technology, you may keep in touch with friends and acquaintances from anywhere. Or you can opt-in for the old-fashioned way of writing a letter. In every case, Airbnb student housing is the perfect way to meet new people and create long-lasting relationships.

Both travelers and hosts create connections that may bring exciting things in the future. Whether the student travels back to the same host or they recommend another friend, or even if the host plans to travel to the student’s country—there is an endless stream of possibilities. And they all entail learning something new.

Where Do Airbnb and Education Cross Paths?

Experience is the best teacher. And Airbnb hosting gives just that. It may seem unconventional, but Airbnb and education go hand in hand. In fact, this way of learning is more memorable and better for some college or university students.

Some governments have made tries (and still are) to implement a so-called “Airbnb for Academia” plan. Namely, since several universities have underused parts, they offer those to international students and earn some extra cash. In return, the students get to learn something new about the place (just as we discussed above).

Then there is the “Airbnb for higher ed” buzz that essentially bases on Harvard University’s ALEX program. It allows employers to send their employees to additional classes in a higher education institution that has some available spots. That will lower the costs for internal training, increase the employee’s knowledge, and bring in more tuition cash for the school.

So, yes, enhancing student education with Airbnb guest interactions is possible—and may even bring extraordinary results for some.

Enhance your Airbnb experience by exploring profitable markets!

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Case Studies

How Much Value Does a Pool Add to Short-Term Rentals?

Post author By Ramon Meris
Post date June 13, 2023

How Much Value Does a Pool Add to Short-Term Rentals?: Are swimming pools worth it? How much value does a pool add to short-term rentals? Get the answers from this article using data analytics.

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Are swimming pools worth it? How much value does a pool add to short-term rentals? Get the answers from this article using data analytics.

August 16, 2023

Key Takeaways

A swimming pool is worth it in the right market. Learn if your target city has a demand for pools using short-term rental data analytics.
Airbnb hosts need to look into several factors before building a swimming pool for Airbnb. These include the market, demand, and available space – among others.
For investors who consider buying a rental property with a pool, they can know if it’s a profitable investment using the gross rental yield.

Introduction

In the highly competitive world of Airbnb, investors are always on the lookout for properties with the right amenities. On the other hand, hosts constantly seek ways to set their properties apart from the rest. One amenity that has consistently proven to be a game-changer is a swimming pool. But how much value does a pool add to short-term rentals?

In this article, we’ll explore the significant impact of swimming pools on Airbnb properties, analyzing their impact on occupancy rates, value pricing, and the opportunity to charge higher nightly rates. So, let’s take a refreshing dive into the world of swimming pools and discover how they can make a splash in your Airbnb revenue.

Should I Put a Pool in My Airbnb?

A swimming pool can be an expensive additional amenity. So before making this huge investment, you should consider a number of factors:

1. Is Your Market Right?

Check if your market is appropriate for a pool amenity. Oftentimes, these markets have a warm climate in most parts of the year or are near popular beach destinations.

2. Is the Seasonal Demand Stable?

Assess the popularity of a pool in your area all year round. If your market’s peak season is during the warmer months, a pool is definitely a competitive advantage. However, it may lose its appeal during a seasonal decline in tourism during the colder months, which may not help you maximize your return on investment.

3. Does Your Property Have Enough Space?

Assess if your property has enough room for a pool amenity. If you’re unsure, you may consult with a landscape architect, and you’ll be surprised by how they can work on a limited space by being creative with the layout.

4. Are You Ready to Spend on Maintenance and Other Costs?

If you have no problems with the first three, it’s now best to consider the cost to add pool. Swimming pools have a hefty price tag for construction. And you’ll continue to spend money on insurance, regular maintenance, and future repairs.

5. Have You Done a Competitive Analysis?

In any other line of business, a competitive analysis ensures success. You can use this in short-term rentals to see the performance of Airbnb listings in your area.

Seeing that there are already quite a few properties with pools listed may trigger you to consider other amenities to differentiate your Airbnb unit. But if you’ve already decided to put a pool in Airbnb regardless of the competition, you might as well use short-term rental data analytics. Compete with other listings that have the same amenities by enhancing your nightly rate with the help of easy-to-use data.

What Is The Cost Of Adding A Pool To A House?

The cost of adding a pool to your Airbnb can vary depending on your location and preferred material, dimensions, and style. But below are the rough estimates of the cost:

The average cost of adding pool to house is $35,000
The average maintenance cost is $180 monthly
Your home insurance premium may increase by $50 annually

How Much Value Does a Pool Add To an Airbnb?

While there is an undeniable cost of adding a swimming pool to an Airbnb, this can be a worthwhile investment that can reap rewards in the long run. We’ll give you an idea of what a swimming pool can do to several key Airbnb metrics. We will use data from the 5 US cities that have a strong demand for pool amenities.

Please take note that the following figures are from “Entire House” Airbnb listings. This excludes apartment, condo, and private & shared room listings to better guide Airbnb hosts who consider adding a pool to their properties.

1. Increased Occupancy Rate

A swimming pool is an attractive amenity for potential guests who may bring along their friends or families with them. As they browse through the listings, a pool can easily make your Airbnb unit stand out among your closest competition having the same property size.

2. Competitive Advantage in Nightly Rate

Properties with swimming pools are often perceived as more luxurious and desirable, This empowers hosts to set their nightly rates at a premium level.

In a saturated market, a swimming pool can differentiate your property from others, attracting guests who specifically seek this amenity, and allowing you to command a higher nightly rate.

3. Airbnb Value Pricing

Even if you charge a higher nightly rate, guests are aware that the huge gap between an ADR of a property with and a property without a pool is understandable. The good news is this gap is only marginal and does not affect the Airbnb value pricing of your property.

4. Significant Difference in Annual Revenue

If your Airbnb is in the right market, you may notice a vast improvement in your annual revenue once you put a pool in your rental property. Because of the higher occupancy rate and the ability to charge a higher nightly rate, it is not rocket science that properties with pools can earn much more in annual revenue.

5. Higher Gross Rental Yield

In connection with the annual revenue, let us discuss the gross rental yields of Airbnb houses with swimming pools. Gross rental yield is a metric to check the profitability of a rental property. It allows us to compare the potential income of different properties with varying attributes such as location, number of rooms, and other amenities.

We can get the gross rental yield of a rental property by dividing its average annual revenue by the property price. When used in our research, we can tell if a swimming pool is worth the additional investment.

Conclusion

Using data analytics, we have answered, “How much value does a pool add to Airbnb rentals?” And in conclusion, a lot! A swimming pool can make a significant impact on your annual revenue. By increasing bookings, commanding higher nightly rates, attracting repeat business and referrals, and appealing to specific demographics, a pool becomes a valuable asset that sets your property apart.

However, it’s important to carefully consider the initial investment costs, ongoing maintenance, and market demand before deciding to add a pool. With a thorough planning and understanding of the financial benefits, a swimming pool can be a lucrative addition to your Airbnb investment, making waves in your annual revenue.

Curious to know the income potential of an investment property with a swimming pool? Then see the possibilities using the most accurate Airbnb Profit Calculator!

Check the Airbnb Data of Your Market According to Amenities

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Short-Term Rental Data

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Unlock Worldwide
Short-Term Rental Data

Find unsaturated neighborhoods with the highest occupancy history.

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Case Studies

Short Term Rental vs Long Term Rental in Canada

Post author By Ramon Meris
Post date June 13, 2023

Short Term Rental vs Long Term Rental in Canada

Key Takeaways

If you’re a traditional landlord in Canada looking to increase your income, short-term rentals could be the solution you’re looking for. However, as an Airbnb host, it’s essential to do your part to make your short-term rental profitable. One effective way to do this is by incorporating data analytics into your rental strategy. By analyzing market trends and pricing, you can charge a competitive nightly rate and attract more guests.

Introduction

Everyone is bracing for the inevitable 2023 recession, which Canada is expected to experience second half of the year. As someone owning one or several rental properties in the Great White North, you are surely restrategizing your next step in the coming months.

Whether you own short-term or long-term rental properties, this article provides you with valuable insights on how to make sound investment decisions. We believe that economic data should not only be accessible to analysts, but also to property owners. By incorporating easy-to-use data analytics, you can maximize your real estate investments and stay ahead of the game in the upcoming dreaded recession.

Differences between Short Term Rental Vs Long Term Rental

Let’s first distinguish one from the other. As we all know, long-term rentals have been a traditional form of housing. They are offered to tenants who choose to reside on a property for at least 6 months with a binding lease agreement. Property owners decide to collect a higher rent than the mortgage to generate monthly income that remains unchanged regardless of the ever-changing economic circumstance.

On the other hand, the setup for a short-term rental is renting out a property to visitors or guests for a very short period. It works pretty much like hotels where guests can stay in for only a couple of days. This can viably extend to weeks or even months. Short-term rentals offer a cozy atmosphere as well as significantly cheaper nightly rates compared to hotels. This is why guests keep coming back to short-term rentals.

Since short-term rentals have become widely used all over the world, rental arbitrage is another popular trend. It has given a lot of nonproperty owners a steady stream of passive income by simply re-renting a unit and listing it on Airbnb, VRBO, or HomeAway. This is a wise, effective, and legal income-generating hustle. Just imagine having a side income from a property that you do not own.

Rental Regulations in Canada

Traditional rental

Rental regulations in Canada vary by province, but some of the common rules include the requirement for a written lease agreement, limitations on rent increases, and the right to privacy for tenants. Additionally, landlords are required to maintain their properties in a safe and habitable condition, and tenants have the right to request repairs or file complaints if necessary. By understanding the rental rules in Canada, both landlords and tenants can ensure a fair and transparent rental process.

Airbnb Regulations

To comply with the diverse short-term rental regulations across Canadian cities, it’s crucial to review each law and ensure your requirements are met. For a comprehensive understanding of the legislation and policies governing short-term rentals, we recommend checking out our previous article titled “Airbnb Rules in Canada.”

Advantages of Long-Term Rentals in Canada:

Below are the advantages of operating a long-term or traditional rental property in Canada:

Record-high population – Canada recorded its highest annual population growth rate at 2.7% for the first time last year since 1957. This was attributed to migration contributing at least 95% of the number of people increase.
A steady stream of income – You are ensured to have a steady and regular monthly income immune to erratic economic conditions. The average monthly rent in Canada is $2,004.
Steady operating costs – You do not need to shell out money upfront for furnishings since the tenants will most likely have their own.
Laid-back management – You will have less interaction with your tenants, and you do not need to be hands-on with managing your property. This is risky, however, since damages on the property can get worse if they’re left unattended.

Advantages of Short-Term Rentals in Canada:

On the other hand, here are the perks that short-term rentals can offer to Airbnb hosts in Canada:

Positive growth in travel and tourism industry – In the next ten years, the GDP of the local tourism sector is poised to increase by an average of 4.4% each year, which is more than double the 1.9% growth rate of the country’s economy as a whole. This growth is expected to bring the industry’s GDP to almost CAD213 billion, which constitutes 6.8% of the entire economy.
Flexible pricing – You can adjust the nightly rate depending on seasonality or market demand.
Experience managing the property – Building connections with people by hosting different guests. If this is not your thing, you can still manage the property remotely via automated management tools.
Feel more control over the property – Since guests only stay in for a limited time, you can easily make changes to your property. Without getting worse, any damages can be repaired in no time and also be covered by Airbnb insurance.

Canada Rental Markets

Here is a view of various parts of the Canadian rental market with their respective average yields to gauge the profitability of short-term vs long-term rental properties:

1. Toronto

Long-Term Rent: C$1,900/mo
Existing Airbnb listings: 9,228
Airbnb annual revenue: C$35,260
Airbnb occupancy rate: 80%
Seasonality: 57%
Average daily rate: C$135

2. Montreal

Long-Term Rent: C$1,900/mo
Existing Airbnb listings: 8,036
Airbnb annual revenue: C$37,501
Airbnb occupancy rate: 77%
Seasonality: 63%
Average daily rate: C$131

3. Ottawa

Long-Term Rent: C$1,850/mo
Existing Airbnb listings: 1,880
Airbnb annual revenue: C$28,698
Airbnb occupancy rate: 68%
Seasonality: 52%
Average daily rate: C$114

4. Vancouver

Long-Term Rent: C$3,795/mo
Existing Airbnb listings: 1,153
Airbnb annual revenue: C$74,661
Airbnb occupancy rate: 89%
Seasonality: 55%
Average daily rate: C$215

5. Calgary

Long-Term Rent: C$2,800/mo
Existing Airbnb listings: 257
Airbnb annual revenue: C$36,579
Airbnb occupancy rate: 78%
Seasonality: 48%
Average daily rate: C$116

6. Richmond

Long-Term Rent: C$3,950/mo
Existing Airbnb listings: 1,204
Airbnb annual revenue: C$32,639
Airbnb occupancy rate: 73%
Seasonality: 68%
Average daily rate: C$138

7. Edmonton

Long-Term Rent: C$945/mo
Existing Airbnb listings: 2,318
Airbnb annual revenue: C$22,419
Airbnb occupancy rate: 61%
Seasonality: 57%
Average daily rate: C$87

8. Dartmouth

Long-Term Rent: C$2025/mo
Existing Airbnb listings: 190
Airbnb annual revenue: C$38,536
Airbnb occupancy rate: 77%
Seasonality: 64%
Average daily rate: C$128

Conclusion

As an investor, you want to make the most out of your capital, which can range from hundreds of thousands to millions of dollars. However, real estate investments can be tricky, with limited options for property optimization. That’s why owners of Canadian rental properties should consider strategizing their rental business to ensure financial security, especially in the threat of an economic recession.

In addition, we recommend analyzing profitable real estate opportunities in Canada to earn a nice income stream. Yet, you can also explore other markets outside Canada! For instance, you could also check out best cities to Airbnb in the US.

Now that you know the difference between short-term vs long-term rental income, Airbnb is the key to having better returns. But to make it work, Airbnb hosts must also do their part. Incorporating data analytics into your strategy can provide valuable insights for setting the right nightly rates. Fortunately, Airbtics offers macro and micro views of rental markets, enabling you to make data-driven decisions and increase your market rent.

Be on Top of Your Airbnb Market &
Make Your Property Investment Recession Ready!

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Case Studies

Short Term Rental vs Long Term Rental in the UK

Post author By Ramon Meris
Post date June 13, 2023

short term rental vs long term rental in the UK

Key Takeaways

If you’re wondering whether you should do short-term rental vs long-term rental in the UK this 2023, then Airbnb is the key to having better returns. But to make it work, Airbnb hosts must also do their part. Incorporating data analytics into your strategy can provide valuable insights for setting the right nightly rates. Fortunately, Airbtics offers macro and micro views of rental markets, enabling you to make data-driven decisions and increase your market rent.

Introduction

While the UK is expected only to hit a minor recession in 2023 as compared to other countries, you may still be considering to restrategize your rental properties. But don’t worry, we are here to give you the numbers for your not to leave money on the table.

Difference between Short Term Rental and Long Term Rental

Rental Regulations in the United Kingdom

Long-Term Rentals

As a landlord in the United Kingdom, you have several legal responsibilities that you must comply with. These include:

1. Ensuring that your rentalproperty is safe and habitable.
2. Making any necessary repairs and maintenance in a timely manner.
3. Complying with all relevant laws and regulations, including tenancy deposit protection schemes, fire safety regulations, and health and safety regulations.
4. Providing essential services such as water, gas, electricity, and heating.
5. Collecting rent from tenants in a timely manner and ensuring that you have a written tenancy agreement in place that outlines the terms of the tenancy.
6. Giving tenants proper notice if you need to access the property, make repairs, or end the tenancy.

Short-Term Rentals

As short-term rental regulations vary by city in the UK, it’s important to review each law to ensure that your requirements are met. To gain a better understanding of the overall legislation and short-term rental policies, kindly refer to our previous article A Guide to Starting an Airbnb Business in the United Kingdom.

Advantages of Long-Term Rentals in The United Kingdom:

Below are the advantages of operating a long-term or traditional rental property in the United Kingdom,:

• Growing population – While it does not enjoy very significant population growth, the UK has over 67 million people as of 2023. This number increased at 0.34% from 2022.

• A steady stream of income – You are ensured to have a steady and regular monthly income immune to erratic economic conditions. The average house rental price in the UK is £1143 per month.

• Steady operating costs – You do not need to shell out money upfront for furnishings since the tenants will most likely have their own.

• Laid-back management – You will have less interaction with your tenants, and you do not need to be hands-on with managing your property. This is risky, however, since damages on the property can get worse if they’re left unattended.

Advantages of Short-Term Rentals in the United Kingdom:

On the other hand, here are perks that short-term rentals can offer to Airbnb hosts in the United Kingdom:

• Strong travel and tourism industry – The travel and tourism industry plays a significant role in the United Kingdom economy, contributing substantially to its GDP. It is estimated that in 2021, this sector generated around £131.5 billion.

• Flexible pricing – You can adjust the nightly rate depending on seasonality or market demand.

• Experience managing the property – Building connections with people by hosting different guests. If this is not your thing, you can still manage the property remotely via automated management tools.

• Feel more control over the property – Since guests only stay in for a limited time, you can easily make changes to your property. Without getting worse, any damages can be repaired in no time and also be covered by Airbnb insurance.

UK Rental Markets

To know which setup can yield more returns to property owners, here is a view of various UK rental markets with their respective average yields from both short-term and long-term rental properties:

1. Central London

Median Rent: £4,225 pcm
Existing Airbnb listings: 4,198
Airbnb annual revenue: £67,276
Airbnb occupancy rate: 88%
Seasonality: 36%
Average daily rate: £262

2. Belfast

Median Rent: £795 pcm
Existing Airbnb listings: 1,347
Airbnb annual revenue: £26,508
Airbnb occupancy rate: 77%
Seasonality: 54%
Average daily rate: £101

3. Birmingham

Median Rent: £1,260 pcm
Existing Airbnb listings: 3,169
Airbnb annual revenue: £17,922
Airbnb occupancy rate: 62%
Seasonality: 49%
Average daily rate: £93

4. Glasgow

Median Rent: £1,095 pcm
Existing Airbnb listings: 3,312
Airbnb annual revenue: £23,454
Airbnb occupancy rate: 68%
Seasonality: 53%
Average daily rate: £116

5. Liverpool

Median Rent: £1,450 pcm
Existing Airbnb listings: 3,001
Airbnb annual revenue: £21,830
Airbnb occupancy rate: 54%
Seasonality: 50%
Average daily rate: £110

6. Newcastle

Median Rent: £1,100 pcm
Existing Airbnb listings: 949
Airbnb annual revenue: £21,310
Airbnb occupancy rate: 60%
Seasonality: 44%
Average daily rate: £108

7. Sheffield

Median Rent: £800 pcm
Existing Airbnb listings: 1,038
Airbnb annual revenue: £20,540
Airbnb occupancy rate: 67%
Seasonality: 51%
Average daily rate: £91

8. Nottingham

Median Rent: £895 pcm
Existing Airbnb listings: 1,198
Airbnb annual revenue: £18,406
Airbnb occupancy rate: 65%
Seasonality: 49%
Average daily rate: £92

9. Blackpool

Median Rent: £820 pcm
Existing Airbnb listings: 1,841
Airbnb annual revenue: £16,577
Airbnb occupancy rate: 44%
Seasonality: 69%
Average daily rate: £101

10. Cardiff

Median Rent: £1,200 pcm
Existing Airbnb listings: 2,131
Airbnb annual revenue: £23,059
Airbnb occupancy rate: 49%
Seasonality: 51%
Average daily rate: £148

LOOKING FOR MORE PROFITABLE LOCATIONS?

Explore other best places to buy property in London for investment!

Conclusion

As an investor, you want to make the most out of your capital, which can range from hundreds of thousands to millions of pounds. However, real estate investments can be tricky, with limited options for property optimization. That’s why owners of UK rental properties should consider strategizing their rental business to ensure financial security, especially in the threat of an economic recession. Hence, researching the Airbnb data of UK cities is a must.

Be on Top of Your Airbnb Market &
Make Your Property Investment Recession Ready!

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Case Studies

What is the Best Type of Property for Airbnb? (with 3 Sample Markets)

Post author By Ramon Meris
Post date June 8, 2023

What is the Best Type of Property for Airbnb? (with 3 Sample Markets): Learn the tools that you can use to find the best type of property for Airbnb and maximize your investment opportunities!

Home > Resources > Hosting Tips >

Learn the tools that you can use to find the best type of property for Airbnb and maximize your investment opportunities!

December 22, 2023

What is the Best Type of Property for Airbnb?

Executive Summary

As a (short-term rental) data scientist, I can look into how property types impact different markets differently.

One pattern I see is that condo units typically have higher gross rental yields. Condo & apartment types are in high demand. For example, in Miami Beach, 1 & 2-bedroom houses make $53,000 annually, whereas the same size properties make $47,000 a year. The average house price in Miami Beach is about 40% higher than the average condo price.

Of course, it depends on your market’s unique supply-demand situation, so you should check out your market data.

Check Occupancy Rate In Your Market

Introduction

If you plan to invest in Airbnb properties, choosing the right property type can significantly impact your financial success. While there is no definitive answer to the “best” property type, certain options tend to offer exceptional potential for returns and long-term growth.

Whether you’re a newbie or a veteran in real estate investing, understanding the key characteristics and earning potential of the best property types can help you make informed decisions and maximize your investment opportunities.

What are the different types of properties on Airbnb?

Here’s a breakdown of the different Airbnb property types that investors can choose from:

1. Entire House

This refers to a standalone property or a separate unit within a building that is rented out in its entirety. You can provide guests exclusive access to all the rooms, amenities, and facilities within this type of property.

This exclusivity allows guests to keep the space to themselves, without encountering the host or other guests, during their stay. An entire house on Airbnb provides complete privacy and is ideal for families or groups who prefer their own space.

Buying a house for Airbnb rental is also a wise investment since houses can build more equity compared to other property types. However, they have higher maintenance costs due to their size.

2. Apartment and Condo

An apartment is a self-contained living space within a larger building or complex. It typically includes a bedroom, living area, bathroom, and a kitchen or kitchenette. While guests have exclusive access to the apartment, there may be shared common areas such as the building entrance, hallways, or laundry facilities. Buying an apartment for Airbnb is not only relatively cheaper but also easier to maintain.

A condo typically works the same way as an apartment with its shared common areas. However, condos usually have individual owners and can offer a higher level of privacy to guests. Buying a condo for Airbnb can allow you to offer guests additional amenities such as swimming pools, parking spaces, and fitness centers. These amenities are, of course, shared with residents or other guests in the building.

3. Private Room

A private room refers to a bedroom within a host’s primary residence that is available for rent on Airbnb. Guests can enjoy privacy in their rented room, but they share common areas such as the living room, kitchen, dining area, and bathroom with the hosts and other guests. While still providing personal space, a private room allows guests to interact with and experience local hospitality from the hosts.

4. Shared Room

A shared room is a single bedroom shared by multiple guests at the same time.

This type has typically dormitory-style arrangements with multiple beds or bunk beds. Guests in a shared room may have access to shared bathrooms, kitchens, and other common areas. Shared rooms are the most affordable option, appealing most to budget and even solo travelers.

What type of property is best for Airbnb?

There really isn’t one. Most people would point you to the property type that has the highest occupancy rate and gives the most income. While there is nothing wrong with this advice, investors seem to forget to consider gross rental yield when buying an Airbnb property.

What does gross rental yield tell you?

Gross rental yield helps you assess the potential profitability of an Airbnb investment property. It is calculated by dividing the annual rental income (before expenses) by the property’s purchase price or market value. By comparing the yield to other investment opportunities or market averages, you can determine whether the property type you have in mind has the potential to generate a good return on investment.

An entire house may give you the most income and a consistently high occupancy rate. However, the costs of operating this property type can also be significant. This is why gross rental yield should also be considered when buying an Airbnb rental.

A higher rental yield suggests better cash flow potential, which is crucial for ensuring a positive return on investment and covering ongoing expenses. A low gross rental yield relative to the property’s purchase price may indicate potential challenges in generating sufficient income to cover expenses and generate a desirable return.

Airbtics’ Discovery Tool can instantly show you the average gross rental yield of any Airbnb market. With its easy-to-use navigation, this saves Airbnb investors a lot of time to zero in on their prospective short-term market.

How to Look for the Best Type of Property for Airbnb in Your Market?

Looking for new or additional investment properties requires research that covers location and the best number of bedrooms. And when Airbnb investors are in the buying stage of a property, it is usually a toss between an entire house or a condo.

Most people choose an entire house over an apartment or condo since houses can build equity. But remember that you are an Airbnb investor who wants to earn a steady passive income and maximize your investment.

Using the right tool, investors can easily answer which of the two property types is better. We’ll show you how short-term rental data analytics can help you make an informed decision before purchasing an Airbnb. For the purpose of this exercise, we’ll use one of the USA’s most profitable cities, Chicago!

Airbtics’ Insights Tool provides data on the annual average revenue, occupancy rate, and nightly rate. As you can see, the Chicago Airbnb market has really promising figures.

Segment Your Market to Know the Best Property Type

With a total of 3,792 total listings, Chicago is indeed a huge Airbnb Market. Using Airbtics Advanced Filters, we can see that the city has 2,389 house listings and 474 condo listings.

According to Airbtics Dashboard, Airbnb apartments in Chicago can generate an average annual revenue of $35,457 with a 50% occupancy rate. Their average nightly rate is $169. On the other hand, Airbnb houses can earn $33,105 in annual revenue. The said property type has a 52% occupancy rate and can charge an average nightly rate of $143.

No matter how specific these figures are, they may not be as close to your target neighborhood. Another advantage of using the Insight Tool is allowing you to create your market for you to isolate and dive deeper into its data. Let us now segment Chicago into different neighborhoods and see their respective short-term rental data.

1. Lincoln Park

Let us say that you’re planning to buy one investment property in Lincoln Park. You’re eyeing this 3-bedroom house worth $1,340,000 and this 3-bedroom condo unit worth $515,000. You somehow have this notion that a house may be more expensive, but can give you higher income. So, you still keep that on your list.

Now, you create a custom market and see that the neighborhood has 211 listings for houses and 36 listings for condos on Airbnb. You glean from the data that this neighborhood is more of an Airbnb house market, instead of condo/apartment.

Upon seeing the data, you confirm your hunch that houses in this neighborhood have a higher average annual revenue. You are somehow surprised that they have 1% less than the average occupancy rate of condos. While $2,068 may be a significant difference to you, let me tell you that other investors may not be satisfied with it.

Both property types are profitable, but this is how gross rental yield comes in. You can gauge the profitability of an investment property relative to its purchasing cost. Let’s now use one of the industry-standard methods of getting the gross renting yields.

Although both of them are profitable, we have learned that a condo in Lincoln Park is a more worthwhile investment. While it has an average revenue of $45,329 ($2,068 less than that of a house), this property type has a 5.3% higher gross rental yield, which is another performance indicator of property investment. So, the condo/apartment property type in Lincoln Square has a sharper edge in terms of investment.

2. Logan Square

You might be thinking, “Of course! A condo has a higher gross rental yield because its purchasing price is much lower than that of a house.” Then, let’s check this assumption in the Logan Square Airbnb market.

Just like Lincoln Park, Logan Square is also an Airbnb “house” market with 220 active listings. It has an average annual revenue of $36,783 and a 53% average occupancy rate. These figures are higher compared to those of condos. On the other hand, condos charge a much higher average nightly rate of $157.

Let’s now see the gross rental yields of these two property types using this 3-Bedroom house worth $420,000 and 2-bedroom condo worth $399,900.

As you can see, it does not always mean that a cheaper property type gives a higher gross rental yield. Because in order to get the gross rental yield of any property, Airbnb investors also have to look at its income aside from its purchasing price.

3. River North

Chicago is known as one of the most coveted real estate areas in the world. And if you want to buy a property in a prime location, River North definitely comes to mind.

River North is a vibrant neighborhood in Chicago known for its lively nightlife, upscale dining, thriving art scene, and proximity to downtown, offering a perfect blend of entertainment, cultural attractions, and urban living.

Because of these reasons, you want to enter the local Airbnb market. In fact, you’re now seriously considering buying either this 4-bedroom townhouse worth $1,099,995 or this 4-bedroom apartment worth $880,000 just to jumpstart your Airbnb business in the neighborhood.

Let’s now see the profitability of the two property types in River North, Chicago:

The average annual revenues of these two property types do not look promising. You really like this neighborhood, so you do not want to give up on entering its Airbnb market. So, let’s check the gross rental yields of your prospective properties in River North.

The average revenue of Airbnb houses in River North is $1,305 more than the Airbnb Condos’. However, Airbnb Condos in the neighborhood have a higher gross rental yield. So, you should buy this 4-bedroom townhouse worth $1,099,995 or this 4-bedroom apartment worth $880,000?

In my opinion, you should buy neither. While both properties will definitely appreciate in value due to their prime location, you are looking for an investment property that will give you passive income – and you want to maximize it. However, running an Airbnb in the River North might not be a good idea because the numbers are simply not favorable from an STR investment perspective.

LOOKING FOR OTHER PROFITABLE AIRBNB LOCATIONS?

If you’re considering buying property outside the US, make sure to analyze other profitable Airbnb markets!

Conclusion

In this article, we have learned that the best Airbnb property type is the one that gives you the highest gross rental yield. Gross rental yield is an effective, two-sided factor to consider since it covers both the cost and the earning potential of an investment property. However, it varies depending on the market. There are markets whose Airbnb houses have the highest gross rental yields, and there are those wherein apartments/condos are more worth considering.

It really takes time to find the best type of property for Airbnb. But with the right analytics tool and research approach, any newbie and veteran in short-term rental investment can easily find the best income-generating property.

Already have an investment property to buy? Check its profitability first from the most accurate Airbnb Calculator available online.

Find the Most Profitable Property Type in Your Airbnb Market
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Short-Term Rental Data

Find unsaturated neighborhoods with the highest occupancy history.

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Case Studies

The Role of Cloud Technology in Enabling Airbnb’s Scalability and Global Expansion

Post author By Guest
Post date June 7, 2023

cloud migration services

Cloud technology has enabled Airbnb’s meteoric rise to become a leading platform for connecting individuals around the globe with unique short-term rental options. The application of cloud computing solutions has allowed Airbnb to efficiently manage data, create robust user experiences, and quickly scale its services to accommodate an ever-expanding base of users. While traditional hosting companies struggled to keep pace with hypergrowth demands, implementing cloud technology gave Airbnb the flexibility and scalability they needed to stay ahead of market demand. In this blog post we will explore how cloud technology enables Airbnb’s technological expansion across existing markets; from providing housing solutions on a global scale through machine learning algorithms that facilitate seamless customer onboarding processes–highlighting the most important ways in which cloud technologies offer decisive competitive advantages for organizations like Airbnb today.

What is Cloud Technology and How Does it Impact Airbnb’s Scalability

Cloud technology refers to the use of remote servers to store, manage, and process data. It is a technology that has revolutionized the way businesses operate, allowing them to store and access data across multiple devices and locations. In the context of Airbnb, cloud technology has played a vital role in enhancing the company’s scalability. Using cloud-based systems allows Airbnb to provide a seamless experience for hosts and guests. However, with this shift to the cloud comes concerns around security and compliance. To address these concerns, Airbnb can benefit from partnering with cloud migration consulting services, which can help them ensure that their system is secure and compliant with industry standards. By taking advantage of expert guidance from cloud migration services, Airbnb can maintain a high level of security and compliance, allowing them to continue growing and expanding their reach to new markets.

How Cloud Computing Helps Airbnb Reach New Markets Around the World

Airbnb has become a household name over the years, but its success wouldn’t be possible without the power of cloud computing. With millions of users around the world, Airbnb has had to expand into different markets to keep up with demand. Cloud migration tools have helped the company make this transition seamlessly by allowing them to allocate resources and scale their infrastructure quickly. As a result, Airbnb has been able to reach new markets and improve its user experience without compromising its platform’s stability. The use of cloud computing has undoubtedly contributed to Airbnb’s exponential growth, making it one of the most successful companies in the hospitality industry.

The Role of Cloud Storage in Handling Large Amounts of User Data

In today’s digital world, the amount of user data being generated is staggering and only expected to grow. This is where cloud storage comes in. With cloud technology constantly evolving, it has become the go-to solution for handling large amounts of data. The convenience of storing data remotely on a server allows a user to access their information from anywhere, at any time. It also eliminates the need for physical storage devices, freeing up valuable space and reducing the risk of data loss. Looking ahead to cloud technology 2023, it’s clear that cloud storage will continue to play a vital role in managing and securing user data. Its scalability, flexibility, and cost-effectiveness make it an indispensable tool for businesses and individuals alike.

Automating Business Processes with Cloud Platforms

In today’s fast-paced business world, time is of the essence. Automating business processes with cloud platforms is a game-changer for any business, freeing up time and resources to focus on more critical tasks. It can help streamline repetitive tasks, reduce errors and optimize performance. The cloud provides an agile, secure and scalable solution that can be accessed from anywhere, making it ideal for businesses that have teams distributed around the world. By automating processes through the cloud, a company can reduce costs, increase productivity and ultimately drive growth. With the rise of the digital economy, automating business processes with cloud platforms is no longer a luxury, but a necessity to stay competitive and relevant.

Final Thoughts

Cloud technology can be a powerful tool in the Airbnb arsenal, allowing them to conquer new markets with ease, manage immense amounts of user data securely, streamline deployments for agile development, and provide predictive analytics. It can also help with automating processes and allow workers to focus on optimizing their workflow. The cloud is an essential part of running tech-enabled businesses today; it equips companies of all sizes with access to the resources they need to remain competitive in a rapidly changing world. Not only does it provide scalability and data security solutions, but flexibility as well — allowing businesses to scale up or down depending on their current needs. And if used correctly, this dynamic approach can have lasting positive effects that can help businesses reach new heights!

Case Studies

Inside the Airbnbust: What Really Happened During Super Bowl 2022 and 2023?

Post author By Ramon Meris
Post date May 26, 2023

Key Takeaways

The short-term rental bust can be simplified into the dynamics of supply and demand. Airbnbust happens only in specific markets where there is an oversupply of listings. It does not encompass the entire short-term rental industry, which, as some fear, may result in an Airbnb collapse.

The “Airbnbust” in Phoenix

Short-term rental property managers and Airbnb hosts in Phoenix expected a high number of guests during this year’s Super Bowl. This highly anticipated sporting event, held last February at the State Farm Stadium, was sold out as it had always been, regardless of the host city. However, for the locals engaged in the short-term rental business, the number of bookings in their Airbnb listings was rather disappointing.

This led people to resurrect “Airbnbust” as a dreadful ghost delivering a warning that Airbnb’s glorious days are numbered. A term that gained traction on social media in late 2022, Airbnbust or Airbnb bust is a phenomenon of rising vacancies or decreasing occupancy rates in Airbnb due to the growing number of new listings. Understandably, this is a grave concern for a lot of people involved in the short-term rental industry.

Airbnb Data on the Two Super Bowls

Let’s compare the two Super Bowls to put things into perspective. According to Airbtics’ Granular Data, the Airbnb average occupancy rate in Los Angeles on the day of the 2022 Super Bowl was 28.4%. This rate was 1.4% higher than the 27% average February occupancy rate in the city. The January 2022 occupancy rate in Los Angeles was 23%.

On the other hand, Phoenix had a 21.6% average occupancy rate during the 2023 Super Bowl, and the average monthly occupancy rate in February 2023 in the city was 23%. This was around 5% lower than the previous year’s occupancy rate for the Super Bowl in Los Angeles. However, we should also take note that the February average occupancy rate in Phoenix still increased by 5% from 18% in January 2023. We can clearly see that there was already a month-on-month increase during the two Super Bowls.

It is also interesting to know the booking lead time or the interval between the booking and check-in dates. The average booking lead time for last year’s event was 15 days, and 42 days for this year’s Super Bowl. This means that Airbnb guests made their bookings longer or around one and a half months in advance before the 2023 Super Bowl in Phoenix compared to last year’s Super Bowl in Los Angeles.

While the Airbnb occupancy rate for this year’s Super Bowl in Phoenix was not as high as last year’s indicator in Los Angeles, the Phoenix Airbnb monthly occupancy rate still increased by 5% in February 2023. Phoenix’s booking lead time also looked more favorable compared to Los Angeles. But if there was indeed such an increase, how come it did not make a strong impression on short-term rental managers and Airbnb hosts?

Airbnb Demand and Supply

In January of this year, Phoenix had 39,470 Airbnb bookings. But during the month of the 2023 Super Bowl, the bookings made were 83,720. While it was evident that the number of bookings significantly increased, so did the number of nights available – from 71,309 to 123,891.

Airbnb connects hosts with guests. Hosts are the people in business to rent out their properties, while guests are the ones in need of accommodations. In the context of short-term rentals, demand represents the number of bookings made by people seeking accommodation on the platform. On the other hand, supply is the number of available nights listed by hosts.

Short-Term Rental Bust

When there is an oversupply of available short-term rental properties, hosts may face more competition that potentially forces them to lower their nightly rates. This happened in Phoenix which led a lot of Airbnb hosts and short-term rental managers in the city to lower their nightly rate to boost their Airbnb occupancy during the 2023 Super Bowl.

A local property manager in Phoenix even dropped the nightly rate from $1,200 to $500 for an unbooked prime 3-bedroom unit. But in my opinion, the nightly rate just fell below their expectations. Based on data from Airbtics, most hosts with booked properties were still able to gain profits and charge an average nightly rate of $178, or $33 more than the annual average nightly rate of $145. Some were even able to charge up to $623 per night. However, their concern was understandable due to the magnitude of the event which was expected to make a huge profit.

No Barriers For Competition

It is also worth noting that there are no restrictions on the number of Airbnb listings in Phoenix, which created an oversupply that led to an Airbnbust. There is also rental arbitrage, which allows people to profit from Airbnb without actually owning the rental property. Should we put the blame on the lenient regulations for this short-term rental bust? This is very different from the cities that have imposed strict Airbnb regulations that limit the number of listings.

In New Orleans, for example, the city put a pause on new short-term rental listing applications in October last year. Existing hosts earned an average nightly rate of $173.75 during the moratorium period. But when the city started accepting new listing applications in February, the average nightly rate rose to $211. February was also the start of the peak season in New Orleans. So more people started visiting the city when additional Airbnb units were allowed to operate. However, the city allows only 1 Airbnb listing per square block.

Sustainable Airbnb Supply and Demand

Demand for Airbnb accommodations is driven by travelers and visitors who prefer the flexibility, cost-effectiveness, and unique experiences offered by staying in someone’s home or property. Factors that impact demand include travel trends, tourist attractions, events, seasonality, and affordability compared to traditional hotels.

But when demand surpasses or gets closer to the supply, guests may experience limited availability and potentially higher prices due to increased competition among travelers. In Honolulu where there is a stable supply that adjusts to the changing Airbnb local demand, the average annual revenue of an Airbnb property is $56,452 from the average nightly rate of $170.

In January when the supply had stayed relatively the same since April, most Airbnb hosts were able to charge from $169 up to $415. But when the demand rose in February, the average nightly rate stayed relatively the same because supply kept up with the demand with the increase in additional nights available.

It is important to understand Airbnb demand and supply. With limited available listings, Airbnb hosts can definitely increase their nightly rate. On the other hand, an oversupply of Airbnb listings in a particular area can lead to competitive pricing. Hosts may lower their prices to attract guests and secure bookings, especially if they face competition from other hosts.

Conclusion

As we have learned, the short-term rental bust can be simplified into the dynamics of supply and demand. Airbnbust happens only in specific markets where there is an oversupply of listings. It does not encompass the entire short-term rental industry, which, as some fear, may result in an Airbnb collapse.

The rise of Airbnb has long disrupted the traditional hospitality sector, offering a platform that allows individuals to monetize their properties and travelers to find unique and affordable accommodations.

The demand for Airbnb listings has been driven by various factors such as saving money and increased flexibility compared to the traditional hospitality sector. On the supply side, property owners have been attracted to the opportunity to generate income and maximize the utilization of their assets, especially hosts located in markets with the highest Airbnb occupancy rates in 2022.

To navigate these evolving dynamics, hosts and property owners must stay attuned to market trends, employ effective marketing strategies, and continuously enhance the quality and uniqueness of their offerings. Leveraging data analytics and technology can help optimize pricing, improve guest satisfaction, and ensure a steady stream of bookings.

The future of the Airbnb industry will also be shaped by regulatory developments and the company’s response to stakeholder concerns. Collaboration between Airbnb, hosts, and local authorities is essential to strike a balance that allows for responsible growth and ensures a positive impact on local communities. Should we allow more Airbnb listings per city, or should we put a limit on them? This is still an ongoing discussion that requires all concerned parties to participate.

Overall, the demand and supply forces within the Airbnb industry are ever-evolving, requiring stakeholders to be adaptable, innovative, and responsive to changing market conditions – just like the threat of an Airbnbust. By understanding and effectively managing these dynamics, hosts and guests alike can continue to benefit from the opportunities provided by the Airbnb platform.

Stay ahead of the competition in any market with Airbtics Granular Data

Case Studies

How to Create a Property Management Apps For Real Estate

Post author By Guest
Post date May 11, 2023

management apps for real estate

Millennials and later generations are more likely to book appointments, shop, rent, or even buy property online rather than in-person. This means that companies who want to stay in the game must embrace the shift by investing in technology – custom real estate software being a great example of this. Custom property management software is changing the real estate landscape and enabling businesses to keep up with the shifting habits of modern customers. Such a tool can help maximize efficiency while providing clients with tailored services. But what is it, exactly? How can one adopt such technology successfully? These are all important questions worth exploring – but let’s start with understanding the basics first: what is custom real estate software?

What is Custom Property Management System?

Property management automation software is the key tool used by property managers to maximize operational efficiency and increase their return on investment. Its primary purpose is to automate essential and repetitive processes, such as communication between landlords and tenants, hotel reservations, customer service, and more. This streamlines the process of managing consumer relations and provides better support for any inquiries that arise. Moreover, it eliminates the need for manual data entry thereby decreasing the chances of errors, increasing accuracy, and saving time.

Using property management automation software helps real estate professionals stay up-to-date with today’s market trends. For instance, cloud-based solutions offer flexibility when it comes to storage capacity, data collection capabilities, analytics for strategic decision-making, as well as comprehensive reporting, and online bookkeeping options. Additionally, there is huge potential for advanced predictive analytics to provide personalized recommendations that match different users’ needs more accurately than ever before. This can take the form of providing a list of optimized rental opportunities based on risk models or predicting future maintenance needs based on historical data.

2 Ways to Create a Property Management System

The choice is between manually creating big, commercial, rental, or small property management software or using SaaS products. More details are below.

Custom Development

Custom development is a useful solution for businesses that deal with multiple properties on a regular basis. It allows them to have a custom-built system that is tailored to their needs, making the management of the properties simpler and smoother. Companies can add any features, including tools such as Stripe and PayPal for payment processing, an easy API integration process, and a custom UX design. Custom development provides unparalleled quality and reliability in rental property management software. However, companies are highly dependent on the development team, which can either take them to a new level or let them down. If I opened a new project, I would contact Jatapp.co, as they have a positive experience of cooperation. While there are many decent developers out there, it’s usually best to work with trusted companies that have a good reputation in the market.

SaaS

SaaS is the perfect solution for property managers who are just starting out in the business or dealing with a relatively small portfolio. Rather than having to build an entire software from scratch and incur hefty upfront costs, SaaS offers a ready-made solution with a much more affordable monthly fee. By taking advantage of SaaS solutions, busy property managers can quickly and easily access all the features they need to keep their operations running smoothly. Plus, SaaS makes it easy to access up-to-date features, so you never have to worry about missing out on the latest developments. With SaaS, staying ahead of the competition is simple!

Guide to Develop Property Management Software

Whether you have hired a development team or ordered a property management software development service, you need to be prepared to go through the following stages. We have collected general information about the stages here.

Determine Software Type

When deciding on what type of property management software you need, it’s important to first consider what type of property management you will be doing. Residential and commercial property management requires different software solutions. Residential systems are catered for the management of houses and flats, tracking payments and occupancy, arranging maintenance, etc. For example, rental property management software will be different from commercial real estate software. Commercial systems are tailored for larger business properties such as retail facilities and business premises, providing tools for accounting, maintenance, marketing, and more. So when deciding on a PMS solution, evaluate your needs in order to choose the best one for your business.

Determine the Main Features

Lease tracking, tenant screening, online payments, accounting, virtual tours, and contract management are all prime features of modern CRM systems. These features provide property managers and landlords with increased functionality to collect rent payments more efficiently, keep better track of their finances, provide potential tenants with a virtual tour experience, and manage contracts digitally.

Selection of a Reliable Supplier

Additionally, prioritize the values of the vendor. Their mission and vision should be in alignment with your own, to ensure that you can make a long-term relationship that is beneficial for both parties. Furthermore, look into the technical capabilities of the company. Do they have sufficient experience? Are they flexible to incorporate any changes you may make along the way? All of these questions are key considerations when selecting a reliable vendor for your property management software project.

Working Out Key Details

Apart from scalability and cloud-based solutions, it is essential to consider other crucial details such as pricing, features, and analytics. Pricing should be set according to the value you want to provide; features should include an intuitive interface and many customization options; and analytics should show data related to users’ behavior —this information can help you make well-informed decisions towards better management of rent portfolios. The right combination of these details will give a much-needed edge over competitors in the market.

Conclusion

Developing property management software is an important step for any business that wants to give its clients the best possible service. Knowing what type of PMS you need, understanding the features, and choosing a reliable supplier are essential steps in developing your software. Together with the right development team, creating quality property management software is a very real task.

Case Studies

Short Term Rental vs Long Term Rental in Australia

Post author By Ramon Meris
Post date May 2, 2023

Short Term Rental vs Long Term Rental in Australia: Should you do short-term rental vs long-term rental in Australia this 2023? Be informed and make your rental property recession-ready!

Home > Resources > Airbnb Investment >

Should you do short-term rental vs long-term rental in Australia this 2023? Be informed and make your rental property recession-ready!

September 4, 2023

Key Takeaways

If you’re a traditional landlord in Australia looking to increase your income, short-term rentals could be the solution you’re looking for. However, as an Airbnb host, it’s essential to do your part to make your short-term rental profitable. One effective way to do this is by incorporating data analytics into your rental strategy. By analyzing market trends and pricing, you can charge a competitive nightly rate and attract more guests.

Introduction

If you’re a rental property owner in Australia, the upcoming 2023 recession may have led you to reconsider your investment strategy. However, rest assured that we’re here to assist you in navigating these uncertain times.

Regardless of whether you possess short-term or long-term rental properties, this article can offer you valuable advice on how to make well-informed investment choices. We believe that economic data should not only be available to analysts but also to property owners. By utilizing user-friendly data analytics, you can optimize your real estate investments and remain ahead of the curve during the impending downturn.

Differences between Short Term Rental Vs Long Term Rental

Rental Regulations in Australia

Long-Term Rentals in Australia

In general, Australian rental regulations vary depending on the region. But they usually cover a wide range of topics including rent increases, lease agreements, bond payments, repairs and maintenance, and termination of tenancy. Here are some key points to keep in mind:

Tenancy agreements: A fixed-term agreement has a specific end date, while a periodic agreement continues until one party gives notice to terminate.
Rent increases: Landlords can only increase rent once every 12 months. They must give the tenant at least 60 days’ notice before the increase takes effect.
Bond payments: Landlords can require tenants to pay a bond, which is typically equal to four weeks’ rent. This bond must be lodged with the relevant state or territory authority and returned to the tenant at the end of the tenancy, provided there is no damage to the property.
Repairs and maintenance: Landlords are responsible for repairing the property to a certain and reasonable extent. Tenants are responsible for keeping the property clean and notifying the landlord of any immediate repairs.
Termination of tenancy: A landlord can only terminate a tenancy in certain circumstances, such as if the tenant has breached the tenancy agreement. A tenant can terminate a tenancy by giving the required notice period, which is usually 14 days for periodic tenancies and the remaining term for fixed-term tenancies.

To prevent any legal complications, landlords in Australia must have a clear understanding of the regulations in their specific state or territory. Landlords can obtain further details and guidance from their local government or rental authority.

Short-Term Rentals in Australia

Just as in long-term rentals, keep in mind that Airbnb regulations also vary depending on the state or territory in which your rental property is located. However, in general, short-term rentals are regulated to ensure safety, quality, and fair trading practices for both renters and property owners. Here are some important points to consider:

Registration and licensing: Short-term rental hosts may need to register their properties or obtain a license before operating in some states and territories. For instance, hosts in New South Wales need to register their properties with the government and obtain a unique registration number.
Safety requirements: To ensure guest safety, short-term rental properties must meet specific safety standards, such as smoke alarms, fire extinguishers, and safety switches.
Insurance: Hosts may be required to get insurance coverage that specifically covers short-term rentals.
Planning and zoning regulations: Some areas may have planning and zoning regulations that restrict or limit short-term rentals.
Noise and nuisance: Short-term rental hosts must ensure their properties don’t create excessive noise or nuisance for neighbors.
Taxation: Short-term rental hosts generally need to pay taxes on their rental income, which may include Goods and Services Tax or other taxes specific to short-term rentals.

To avoid legal issues, it’s important for short-term rental hosts in Australia to know the regulations in their state or territory. Hosts can seek more information from their local government or rental authority.

Advantages of Long-Term Rentals in Australia:

Below are the advantages of operating a long-term or traditional rental property in Australia:

Growing population – With over 26 million people, Australia displays a positive population growth with an annual increase of 1.6%. Migration always plays a huge part in this number with 303,700 people deciding to live in Australia in 2022 alone.
A steady stream of income – You are ensured to have a steady and regular monthly income immune to erratic economic conditions. The average weekly rent in Australia is A$480.
Steady operating costs – You do not need to shell out money upfront for furnishings since the tenants will most likely have their own.
Laid-back management – You will have less interaction with your tenants, and you do not need to be hands-on with managing your property. This is risky, however, since damages on the property can get worse if they’re left unattended.

Advantages of Short-Term Rentals in Australia:

On the other hand, here are perks that short-term rentals can offer to Airbnb hosts in Australia:

Strong tourism industry – Over a million foreign tourists visit Australia each month. This makes the country a top-notch global spot for tourism. The tourism industry in our country adds up to $152 billion to the economy, sustaining over 300,000 enterprises, and providing employment to more than 660,000 individuals in Australia.
Flexible pricing – You can adjust the nightly rate depending on seasonality or market demand.
Experience managing the property – Building connections with people by hosting different guests. If this is not your thing, you can still manage the property remotely via automated management tools.
Feel more control over the property – Since guests only stay in for a limited time, you can easily make changes to your property. Without getting worse, any damages can be repaired in no time and also be covered by Airbnb insurance.

Source: Airbtics Dashboard

The Australia Rental Market

Looking for the best city to invest in property in Australia? Here are a few Australian rental markets with their respective average yields to gauge the profitability of short-term vs long-term rental properties:


Location	Long-Term Rent	Existing Airbnb listings	Airbnb Annual Revenue	Airbnb occupancy rate	Seasonality	Average daily rate
Sydney	$820 per week	12,307	A$45,076	69%	38%	A$177
Melbourne	A$720 per week	15,320	A$55,020	70%	38%	A$219
Adelaide	A$420 per week	3,816	A$60,606	83%	34%	A$197
Perth	A$550 per week	415	A$49,533	91%	25%	A$146
Darwin	A$350 per week	864	A$68,768	68%	89%	A$229
Newcastle	A$765 per week	1,164	A$54,656	62%	44%	A$255
Cairns	A$950 per week	263	A$66,595	85%	52%	A$216
Hervey Bay	A$550 per week	381	A$45,128	79%	38%	A$162
Sunshine Coast	A$600 per week	6,535	A$88,098	85%	40%	A$294
Gold Coast	A$595 per week	7,117	A$85,271	90%	38%	A$284

Airbnb Location

Airbnb Dataset

Sydney

Long-Term Rent: A$820 per week
Existing Airbnb listings: 12,307
Airbnb annual revenue: A$45,076
Airbnb occupancy rate: 69%
Seasonality: 38%
Average daily rate: A$177

Melbourne

Long-Term Rent: A$720 per week
Existing Airbnb listings: 15,320
Airbnb annual revenue: A$55,020
Airbnb occupancy rate: 70%
Seasonality: 38%
Average daily rate: A$219

Adelaide

Long-Term Rent: A$420 per week
Existing Airbnb listings: 3,816
Airbnb annual revenue: A$60,606
Airbnb occupancy rate: 83%
Seasonality: 34%
Average daily rate: A$197

Perth

Long-Term Rent: A$550 per week
Existing Airbnb listings: 415
Airbnb annual revenue: A$49,533
Airbnb occupancy rate: 91%
Seasonality: 25%
Average daily rate: A$146

Darwin

Long-Term Rent: A$350 per week
Existing Airbnb listings: 864
Airbnb annual revenue: A$68,768
Airbnb occupancy rate: 68%
Seasonality: 89%
Average daily rate: A$229

Newcastle

Long-Term Rent: A$765 per week
Existing Airbnb listings: 1,164
Airbnb annual revenue: A$54,656
Airbnb occupancy rate: 62%
Seasonality: 44%
Average daily rate: A$255

Cairns

Long-Term Rent: A$950 per week
Existing Airbnb listings: 263
Airbnb annual revenue: A$66,595
Airbnb occupancy rate: 85%
Seasonality: 52%
Average daily rate: A$216

Hervey Bay

Long-Term Rent: A$550 per week
Existing Airbnb listings: 381
Airbnb annual revenue: A$45,128
Airbnb occupancy rate: 79%
Seasonality: 38%
Average daily rate: A$162

Sunshine Coast

Long-Term Rent: A$600 per week
Existing Airbnb listings: 6,535
Airbnb annual revenue: A$88,098
Airbnb occupancy rate: 85%
Seasonality: 40%
Average daily rate: A$294

Gold Coast

Long-Term Rent: A$595 per week
Existing Airbnb listings: 7,117
Airbnb annual revenue: A$85,271
Airbnb occupancy rate: 90%
Seasonality: 38%
Average daily rate: A$284

Source: Airbtics Dashboard

Conclusion

As an investor, you want to make the most out of your capital, which can range from hundreds of thousands to millions of dollars. However, real estate investments can be tricky, with limited options for property optimization. That’s why owners of Australian rental properties should consider strategizing their rental business to ensure financial security, especially in the threat of an economic recession. Otherwise, you could also consider targeting one of the most profitable Airbnb locations in the US if you want to try a different market.

Enticed to see how your property will make via Airbnb? Check out this accurate Short-Term Rental Profit Estimator!

Be on Top of Your Airbnb Market &
Make Your Property Investment Recession Ready!

Unlock Worldwide
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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Case Studies

Short Term Rental vs Long Term Rental in the US

Post author By Ramon Meris
Post date April 24, 2023

short term rental vs long term rental in the US

Key Takeaways

If you’re a traditional landlord in the US looking to increase your income, short-term rentals could be the solution you’re looking for. However, as an Airbnb host, it’s essential to do your part to make your short-term rental profitable. One effective way to do this is by incorporating data analytics into your rental strategy. By analyzing market trends and pricing, you can charge a competitive nightly rate and attract more guests.

Introduction

As a rental property owner in the US, the inevitable 2023 recession has probably caused you to rethink your investment strategy. But don’t worry, we’re here to help guide you through these uncertain times.

Differences between Short Term Rental Vs Long Term Rental

Rental Regulations in the United States

Tenant’s Right

Tenants in the United States have certain rights that are protected by law. Landlords should also provide tenants with a written lease agreement that complies with all relevant laws and regulations. This includes clearly stating the leasing period, monthly rental rates, and the names of all tenants.

One of the most important rights that a tenant has is the right to a habitable dwelling. This means that the landlord is legally obligated to provide a safe and livable space, free from hazards like mold, lead paint, or structural defects. If tenants notice any serious problems with the dwelling, landlords should act immediately right after they are notified.

Another key tenant’s right is the right to privacy. Landlords cannot enter the property without the tenants’ permission – except in emergency situations or with proper notice. This means that tenants have the right to enjoy their living space without fear of intrusion or harassment.

For more information, check out the state-specific laws from this blog.

Airbnb Regulations

As an Airbnb host, it’s crucial to be aware of the regulations that govern short-term rentals in the United States. Regulations vary by city and state, but some general guidelines can help ensure compliance with local laws. Some cities have imposed restrictions on short-term rentals to protect long-term housing availability. For instance, in New York City, it is illegal to rent out an entire apartment for less than 30 days without the owner being present. Additionally, hosts may be required to pay taxes or fees on their rentals. For example, Chicago mandates hosts to obtain a vacation rental license and pay a 4% hotel accommodation tax.

Hosts must also be mindful of building and safety codes, as they may need to make upgrades or changes to meet local requirements. Being a responsible and considerate host is equally important. It’s essential to communicate clearly with guests, provide them with accurate property information. Hosts should ensure their safety and comfort during their stay. By staying up-to-date with the regulations in the area, hosts can enjoy a successful and rewarding experience on Airbnb.

Advantages of Long-Term Rentals in The United States:

Below are the advantages of operating a long-term or traditional rental property in the United States:

Strong population – With over 334 million residents, the United States is the third most populous country in the world. This fact alone can guarantee landlords a strong market demand for long-term rental properties. In 2022 alone, the US population rose to 0.4% – indicating recovery from the COVID-19 Pandemic.
A steady stream of income – You are ensured to have a steady and regular monthly income immune to erratic economic conditions. The average monthly rent in the United States is $1,702.
Steady operating costs – You do not need to shell out money upfront for furnishings since the tenants will most likely have their own.
Laid-back management – You will have less interaction with your tenants, and you do not need to be hands-on with managing your property. This is risky, however, since damages on the property can get worse if they’re left unattended.

Advantages of Short-Term Rentals in the United States:

On the other hand, here are perks that short-term rentals can offer to Airbnb hosts in the United States:

Strong travel and tourism industry – The tourism sector in the United States produced an economic output of $1.9 trillion, providing employment to 9.5 million Americans and contributing 2.9% to the country’s GDP. The United States is the country where international travelers spend the most, accounting for 14.5% of international travel expenses worldwide.
Flexible pricing – You can adjust the nightly rate depending on seasonality or market demand.
Experience managing the property – Building connections with people by hosting different guests. If this is not your thing, you can still manage the property remotely via automated management tools.
Feel more control over the property – Since guests only stay in for a limited time, you can easily make changes to your property. Without getting worse, any damages can be repaired in no time and also be covered by Airbnb insurance.

US Rental Markets

To know which setup can yield more returns to property owners, here is a view of various short-term rental cities in the US with their respective average yields from both short-term and long-term rental properties:

1. Los Angeles

Median Rent: $2,995
Existing Airbnb listings: 2,543
Airbnb annual revenue: $42,474
Airbnb occupancy rate: 79%
Average daily rate: $142

2. Seattle

Median Rent: $2,995
Existing Airbnb listings: 4,057
Airbnb annual revenue: $47,368
Airbnb occupancy rate: 81%
Average daily rate: $145

3. Houston

Median Rent: $1,800
Existing Airbnb listings: 7,591
Airbnb annual revenue: $21,399
Airbnb occupancy rate: 48%
Average daily rate: $111

4. Boston

Median Rent: $3,225
Existing Airbnb listings: 2,141
Airbnb annual revenue: $51,653
Airbnb occupancy rate: 77%
Average daily rate: $185

5. Detroit

Median Rent: $1,200
Existing Airbnb listings: 998
Airbnb annual revenue: $20,285
Airbnb occupancy rate: 44%
Average daily rate: $121

6. Portland

Median Rent: $1,775
Existing Airbnb listings: 3,221
Airbnb annual revenue: $36,749
Airbnb occupancy rate: 81%
Average daily rate: $112

7. New Orleans

Median Rent: $1,802
Existing Airbnb listings: 5,707
Airbnb annual revenue: $46,797
Airbnb occupancy rate: 65%
Average daily rate: $186

8. Phoenix

Median Rent: $2,100
Existing Airbnb listings: 5,560
Airbnb annual revenue: $40,585
Airbnb occupancy rate: 64%
Average daily rate: $158

9. Austin

Median Rent: $2,326
Existing Airbnb listings: 7,768
Airbnb annual revenue: $45,655
Airbnb occupancy rate: 65%
Average daily rate: $181

10. Richmond

Median Rent: $1,499
Existing Airbnb listings: 588
Airbnb annual revenue: $38,656
Airbnb occupancy rate: 76%
Average daily rate: $128

Conclusion

As an investor, you want to make the most out of your capital, which can range from hundreds of thousands to millions of dollars. However, real estate investments can be tricky, with limited options for property optimization. That’s why owners of US rental properties should consider strategizing their rental business to ensure financial security, especially in times of economic recession.

Be on Top of Your Airbnb Market &
Make Your Property Investment Recession Ready!

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🎉 FREE WEBINAR - July 24th, 11am / 8pm CET - Learn Airbtics in 7 Minutes - Revenue and Market Analysis Tips and Best Practices!

Airbnb & Learning: Do They Go Together?

Benefits of Hosting International Students

Cross-cultural Understanding

A Fresh Perspective of the Surroundings

Extra Income/Extra Knowledge

Networking

Where Do Airbnb and Education Cross Paths?

Enhance your Airbnb experience by exploring profitable markets!

Quick Links

Quick Links

Introduction

Should I Put a Pool in My Airbnb?

1. Is Your Market Right?

2. Is the Seasonal Demand Stable?

3. Does Your Property Have Enough Space?

4. Are You Ready to Spend on Maintenance and Other Costs?

5. Have You Done a Competitive Analysis?

What Is The Cost Of Adding A Pool To A House?

How Much Value Does a Pool Add To an Airbnb?

1. Increased Occupancy Rate

2. Competitive Advantage in Nightly Rate

3. Airbnb Value Pricing

4. Significant Difference in Annual Revenue

5. Higher Gross Rental Yield

Conclusion

Check the Airbnb Data of Your Market According to Amenities

Quick Links

Quick Links

Key Takeaways

Introduction

Differences between Short Term Rental Vs Long Term Rental

Rental Regulations in Canada

Traditional rental

Airbnb Regulations

Advantages of Long-Term Rentals in Canada:

Advantages of Short-Term Rentals in Canada:

Canada Rental Markets

1. Toronto

2. Montreal

3. Ottawa

4. Vancouver

5. Calgary

6. Richmond

7. Edmonton

8. Dartmouth

Conclusion

Be on Top of Your Airbnb Market &Make Your Property Investment Recession Ready!

Key Takeaways

Introduction

Difference between Short Term Rental and Long Term Rental

Rental Regulations in the United Kingdom

Long-Term Rentals

Short-Term Rentals

Advantages of Long-Term Rentals in The United Kingdom:

Advantages of Short-Term Rentals in the United Kingdom:

UK Rental Markets

1. Central London

2. Belfast

3. Birmingham

4. Glasgow

5. Liverpool

6. Newcastle

7. Sheffield

8. Nottingham

9. Blackpool

10. Cardiff

Conclusion

Be on Top of Your Airbnb Market &Make Your Property Investment Recession Ready!

What is the Best Type of Property for Airbnb?

Executive Summary

Introduction

What are the different types of properties on Airbnb?

1. Entire House

2. Apartment and Condo

3. Private Room

4. Shared Room

What type of property is best for Airbnb?

What does gross rental yield tell you?

How to Look for the Best Type of Property for Airbnb in Your Market?

Be on Top of Your Airbnb Market &
Make Your Property Investment Recession Ready!

Be on Top of Your Airbnb Market &
Make Your Property Investment Recession Ready!