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Airbnb Occupancy All About Airbnb

Airbnb Occupancy Rate Seattle: Navigating Nightly Rate During Peak Season

Airbnb Occupancy Rate Seattle: Navigating Nightly Rate During Peak Season: Don’t know how to adjust your nightly rate during a high Seattle Airbnb Occupancy Rate? Then let granular Airbnb data analytics guide you!

Airbnb Occupancy Rate Seattle: Navigating Nightly Rate During Peak Season

airbnb occupancy rate seattle

Airbnb Occupancy Rate Seattle: Navigating Nightly Rate During Peak Season

Don’t know how to adjust your nightly rate during a high Seattle Airbnb Occupancy Rate? Then let granular Airbnb data analytics guide you!

Key Takeaways

  • During Seattle events and festivals, it can be tempting to increase your nightly rate significantly. However, overpricing your listing may result in missed booking opportunities, while underpricing could mean lost profits during high-demand periods. Striking a fair balance that benefits both you and your guests is crucial.
  • You can navigate this by learning the previous year’s Airbnb occupancy rate in Seattle and how much hosts were able to optimize their nightly rate during the city’s fun times.

Introduction

As a Seattle Airbnb host, it’s important to make the most of peak season while remaining competitive. With Seattle’s reputation for drawing large crowds from around the globe for music festivals and other events, utilizing Airbnb historical data can help you make informed pricing decisions. This way, you can adjust your rental unit accordingly like a professional Airbnb revenue manager just by using very accessible short-term rental data analytics tools!

In this blog post, we’ll highlight some of the top events in Seattle you should know to enhance your Airbnb pricing strategy this year. So whether you’re a new host or a seasoned pro, read on to discover how you can make the most of the many events that this vibrant city has to offer.

Is Seattle a good place to Airbnb?

Don’t worry, it is! Seattle has a total of 5,057 active listings with 55.25 days average booking lead time for Airbnb. This means STR units in Seattle are booked almost 2 months beforehand. 

Hosts who operate a 2-bedroom property can earn an average annual revenue of $59,561. They can charge an average nightly rate of $161 and still enjoy an average 78% occupancy rate all year round. 

Thinking of testing the Airbnb waters in Seattle while minimizing cost? Read our blog on rental arbitrage in Seattle and learn the easiest and legal way to earn passive income from real estate.

Airbnb Occupancy Rate Seattle in Peak Seasons

To outshine other Airbnb hosts the best time of year to visit Seattle, it’s crucial to stay competitive with your pricing strategy. By leveraging historical data, you can compare your prices with those of your competitors and adjust accordingly to attract more bookings. In this part, we’ll reveal how much Seattle Airbnb hosts earned during the peak season in 2022, giving you insights on how much you can earn this year.

With its cutting-edge feature, Airbtics offers another tool that enables you to analyze daily, weekly, and monthly data comprehensively for more granular analysis. Include the ever-reliable Custom Market feature, you can check the average nightly rate and other essential data from various Seattle Airbnb markets catering to tourists during city festivities.

1. Capitol Hill Block Party
  • Airbnb Market: Capitol Hill
  • When: July 22 – 24, 2022
  • Average Occupancy Rate: 32.33%
  • Average Booking Lead Time: 90.33 Days
  • Average Nightly Rate: $260.67
2. Seattle International Film Festival
  • Airbnb Market: Columbia City
  • When: April 14 – 24, 2022
  • Average Occupancy Rate: 24.2%
  • Average Booking Lead Time: 40.55 Days
  • Average Nightly Rate: $123.18
3. Bite of Seattle 
  • Airbnb Market: Seattle Center Area
  • When: August 5 – 7, 2022
  • Average Occupancy Rate: 33.3%
  • Average Booking Lead Time: 102 Days
  • Average Nightly Rate: $151.33
4. Seattle Pride
  • Airbnb Market: Downtown, Seattle
  • When: June 4
  • Average Occupancy Rate: 31.6%
  • Average Booking Lead Time: 66 Days
  • Average Nightly Rate: $201
5. Seattle Hempfest
  • Airbnb Market: Downtown, Seattle
  • When: June 4
  • Average Occupancy Rate: 32.6%
  • Average Booking Lead Time: 57 Days
  • Average Nightly Rate: $171

Conclusion

During Seattle events and festivals, it can be tempting to increase your nightly rate significantly. However, overpricing your listing may result in missed booking opportunities, while underpricing could mean lost profits during high-demand periods. Striking a fair balance that benefits both you and your guests is crucial.

To achieve this balance, you need to conduct thorough research and analyze market demand in detail using granular data offered by the game-changing data analytics tool, Airbtics. This allows you to price your Airbnb listing competitively, attracting guests while maintaining a reasonable profit margin. Hence, researching the occupancy rates of key cities in the US is a smart way to start your investment journey. This way, you will have a better overview of the market you want to target.

Ensure that you’re pricing your STR unit correctly with our accurate and user-friendly Airbnb Profit Calculator. Check it out now!

Have The Bird’s-Eye View then
Plunge into the Granular Data of Seattle Airbnb Market

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

Unlock Worldwide
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Find unsaturated neighborhoods with the highest occupancy history.

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Airbnb Investment All About Airbnb

Airbnb Property Investment Analysis: Real estate for sale in Seattle, WA

airbnb property investment Seattle

Did somebody say coffee? Seattle is filled with interesting coffee culture, but there’s so much more to discover! This city’s various amazing tech industries certainly attract young professionals to do their business, but it’s also a haven for property investors who want to engage in tourist market. While many travelers consider this city on their travel bucket list, it’s most certainly a thrill for property investors too.

To begin with, the major costs and potential revenue should be considered before deciding to purchase a property. Another excellent option is to do rental arbitrage in Seattle since it’s fairly popular and does not require you to purchase a property as a start.

.

“Seattle real estate investment generates excellent ROI in the long term. Seattle’s housing market has been one of the hottest in the country for years.
In the past ten years, the annual real estate appreciation rate has amounted to nearly 9.26%. This puts Seattle in the top 10% nationally for real estate appreciation.

– Norada Real Estate Investments of Seattle Properties

Airbnb occupancy rates by city state that an average host in Seattle can earn up to $37,356 during the peak seasons from July – August. With over 4,050 Airbnb listings in Seattle, it’s certainly a catch for property investors! 

Aside from looking at a property’s fascinating architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment.

This includes the best website recommendations for property investment in Seattle, property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more? Continue reading!

Pros of buying an Airbnb Property in Seattle

The Emerald City, Seattle, offers stunning landscapes as the gateway to Alaska! The city is filled with great restaurants, bars and eclectic neighborhoods, so there’s always something new to discover here. However, there’s more to learn as to why we recommend purchasing a property in this city. Here are some of the major reasons why you should consider buying a property for Airbnb in Seattle:

1. Booming economy

Seattle is one of the fastest-growing regional economies in the US, expanding at an annual rate of 4.9%! The job market is booming as professionals can find plenty of opportunities here, especially in the technology field since Seattle is home to major tech industries and is also a hub for start-ups. 

2. Bustling tourist destination

Seattle can easily catch people’s attention with its fascinating atmosphere that is surrounded by mountains and lakes! In fact, a great number of travelers arrive in the city each year to enjoy the outdoor and cultural activities in the city. According to Visit Seattle portal, around 21M tourists visited the city before the pandemic and now, Seattle’s tourism industry is trending up again year-over-year.

3. Great location

Let’s be honest, location plays an important role if we are talking about real estate investments. Seattle enjoys a great location in Washington as it’s situated between Lake Washington and Puget Sound of the Pacific Northwest. Here, we can find one of the most important and busiest ports, the Port of Seattle. The main airport is located just 13 miles away from Downtown Seattle. In addition to this, we can’t forget to mention the city’s proximity to major cities like Tacoma & Portland as well as Victoria & Vancouver, Canada.

What to Expect When Purchasing a Property in Seattle?

Now that we know the pros of investing in Boston, let’s take a quick look at some of the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!

1. High cost of living

While Seattle’s housing market is one of the hottest in the country, it’s also considered one of the most expensive cities. The average housing value here is $831K as confirmed by Zillow Index, which is 80% higher compared to other cities in the state. In addition to this, the overall cost of living is 57% higher than the national average.

2. Terrible traffic!

It’s a given fact that Seattle is a bustling city, so you can already guess that the traffic here can end up being a nightmare. It’s guaranteed that the terrible traffic, especially during rush hours, will be part of your daily life. In fact, drivers lose around 46 hrs in congestion per year. 

airbnb property investment Seattle

Is Property Investment Profitable in Seattle, WA?

Using a short-term rental estimator, it was discovered that a 2-bedroom apartment in Seattle can generate an annual revenue of $106,039 with a steady occupancy rate of 71% and a nightly rate of $367.

airbnb property investment Seattle

airbnb property investment Seattle

Modern Homes for Sale in Seattle City Center | Seattle Waterfront Condos for Sale

Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage. 

At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Check out some of the profitable properties located in Seattle city center and waterfront, along with the calculated gross rental yield, cash-on-cash return, and annual revenue:

airbnb property investment Seattle
airbnb property investment Seattle

14322 Admiralty Way, Lynnwood, WA 98087

1. Studio-type Property for Sale Seattle Waterfront/City Center
  • 1.8 miles Picnic Point Elementary School
  • Asking Price: $105,000
GROSS RENTAL YIELD 27.94%
ANNUAL REVENUE $42,639
CASH ON CASH RETURN 58.05%
airbnb property investment Seattle
airbnb property investment Seattle

10303 Crescent Valley Dr NW, Gig Harbor, WA 98332

2. 1 Bedroom-Type Property for Sale Seattle Waterfront/City Centre
  • 1.0  miles to Harbor Ridge Middle School
  • Asking Price: $175,000
GROSS RENTAL YIELD 17.19%
ANNUAL REVENUE $30,081
CASH ON CASH RETURN 25.80%
airbnb property investment Seattle
airbnb property investment Seattle

10455 Des Moines Memorial Dr S Apt N303, Seattle, WA 98168

3. 2-Bedroom Type Property for Sale Seattle Waterfront/City Center
  • 0.5 miles to Beverly Park Elementary At Glendale
  • Asking Price: $199,950
GROSS RENTAL YIELD 21.32%
ANNUAL REVENUE $42,639
CASH ON CASH RETURN 38.21%
3bd Sulphur
3bd Sulphur

646 N Hawthorne St, Tacoma, WA 98406

4. 3-Bedroom Type Property for Sale Seattle Waterfront/City Center
  • 0.4 miles Geiger Montessori School
  • Asking Price: $220,000
GROSS RENTAL YIELD 26.98%
ANNUAL REVENUE $59,357
CASH ON CASH RETURN 55.17%
4bd Sulphur
4bd Seattle

7701 Hardeson Rd, Everett, WA 98203

5. 4-Bedroom Type Property for Sale Seattle Waterfront/City Center
  • 0.5 miles to Horizon Elementary School
  • Asking Price: $255,000
GROSS RENTAL YIELD 26.82%
ANNUAL REVENUE $68,403
CASH ON CASH RETURN 54.71%

Takeaway

Investing in a property is certainly a huge step that one needs to not only think about but also conduct market research for better accuracy. With the economic industries & recreational activities in Seattle, it can generate a nice cash flow for property investors as long as the right neighborhood is targeted!

Thus, if the data presented above has given you ideas to boost your strategic pricing plan for your business, then an Airbnb rental arbitrage estimator is certainly what you need for success in the long run.

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Airbnb Investment All About Airbnb

Best Cities to Airbnb in Washington State and Nearby Cities: Airbnb Investment in 2023

Best Cities to Airbnb in Washington State: Get leads on the best cities to Airbnb in Washington State from this article backed by short-term rental analytics!

Best Cities to Airbnb in Washington State and Nearby Cities: Airbnb Investment in 2023

Best Cities to Airbnb in Washington

Best Cities to Airbnb in Washington State and Nearby Cities: Airbnb Investment in 2023

Get leads on the best cities to Airbnb in Washington State from this article backed by short-term rental analytics!

Key Takeaways

  • The economy of Washington State is driven by a very high employment rate which makes it a viable rental property market. In fact, rental leasing is among its top industries.  
  • Short-term rental data analytics can guide prospective investors in their next Airbnb business venture. 

Introduction

We bet you’re probably sipping a cup of coffee while searching on your PC for a profitable investment property in Washington State, known as the birthplace of Starbucks and Microsoft. While these brands have expanded globally, you can enter the short-term rental industry in The Evergreen State with data analytics as your guide!

Read this blog to know about the tools for making data-backed decisions without setting aside your cup of joe. And no worries, rental arbitrage can jumpstart your Airbnb business if you can’t own a rental property for now. 

Is Airbnb legal in Washington State?

Yes! Airbnb is legal in Washington State as long as operators have secured a business license from the local Department of Revenue. Investors must pay all applicable fees and taxes, including occupancy, sales, and lodgings, among others. 

Is Washington a good state to invest in real estate?

Real estate investing in Washington State can be a very great idea due to the following reasons:

  • Booming economy – The employment rate in Washington State has continued to rise over the past five years. Also, real estate and rental leasing are among the top sectors in the State along with the information and retail trade sectors. 
  • No income tax – The state does not impose personal and corporate taxes. However, this exception does not cover businesses in Washington State– all of which are subject to Business and Occupation and/or Public Utility Tax. Even so, locals get to take home more disposable income that can be spent to further boost the economy. 

Is Airbnb profitable in Washington State?

Generally, yes! A host in Seattle can earn $56,195 annually for operating a 3-bedroom Airbnb. They can charge a nightly rate of $265, and their average occupancy rate is 58%. Continue reading this blog to find out the revenue of Airbnb hosts in different cities in Washington State.

Best Cities to Airbnb in Washington State

8 Best Cities to Airbnb in Washington State

Airbtics’ Dashboard allows you to search the hottest real estate markets in Washington state. It will then give you key Airbnb data of your searched city. We already did the work for you! And according to our research, here are the best Airbnb cities in Washington State:

airbtics-logo-300x87
Location Number of Airbnb Listings Best Number of Bedrooms Airbnb Annual Revenue Median Property Price GRY
Bellingham 65 3 Bedrooms $86,723 $679,000 12.77%
Kirkland 82 2 Bedrooms $48,728 $660,000 7.38%
Bellevue 176 Studio unit $42,247 $589,000 7.17%
Vancouver 149 2 Bedrooms $38,177 $375,000 10.18%
Spokane 280 2 Bedrooms $32,617 $295,000 11.06%
Seattle 1,854 Studio Unit $30,799 $315,000 9.78%
Redmond 92 1 Bedroom $25,465 $439,000 5.80%
Tacoma 239 Studio Unit $21,341 $149,999 14.23%

Airbnb Location

Airbnb Dataset

  • Total Number of Airbnb Listings: 65
  • Most Profitable Number of Bedrooms: 3 Bedrooms
  • Airbnb Annual Revenue Potential: $86,723
  • Median Property Price: $679,000
  • Gross Rental Yield: 12.77%
  • Total Number of Airbnb Listings: 82
  • Most Profitable Number of Bedrooms: 2 Bedrooms
  • Airbnb Annual Revenue Potential: $48,728
  • Median Property Price: $660,000
  • Gross Rental Yield: 7.38%
  • Total Number of Airbnb Listings: 176
  • Most Profitable Number of Bedrooms: Studio unit
  • Airbnb Annual Revenue Potential: $42,247
  • Median Property Price: $589,000
  • Gross Rental Yield: 7.17%
  • Total Number of Airbnb Listings: 149
  • Most Profitable Number of Bedrooms: 2 Bedrooms
  • Airbnb Annual Revenue Potential: $38,177
  • Median Property Price: $375,000
  • Gross Rental Yield: 10.18%
  • Total Number of Airbnb Listings: 280
  • Most Profitable Number of Bedrooms: 2 Bedrooms
  • Airbnb Annual Revenue Potential: $32,617
  • Median Property Price: $295,000
  • Gross Rental Yield: 11.06%
  • Total Number of Airbnb Listings: 1,854
  • Most Profitable Number of Bedrooms: Studio unit
  • Airbnb Annual Revenue Potential: $30,799
  • Median Property Price: $315,000
  • Gross Rental Yield: 9.78%
  • Total Number of Airbnb Listings: 92
  • Most Profitable Number of Bedrooms: 1 Bedroom
  • Airbnb Annual Revenue Potential: $25,465
  • Median Property Price: $439,000
  • Gross Rental Yield: 5.80%
  • Total Number of Airbnb Listings: 239
  • Most Profitable Number of Bedrooms: Studio unit
  • Airbnb Annual Revenue Potential: $21,341
  • Median Property Price: $149,999
  • Gross Rental Yield: 14.23%

Source: Airbtics Dashboard

Looking for a profitable Airbnb is so easy by using the Airbtics Dashboard. Typing in your target city is the first step toward your data-backed Airbnb property search.

Best Cities to Airbnb in Washington State

While you can already see the aggregate data of an Airbnb city, the figures will also update when you use the advanced filters! The lead will not only be about location. You will know that you can maximize your revenue if you get the right property type and the best number of bedrooms in each of your target cities!

Best Cities to Airbnb in Washington State

Airbtics Sample Market

Conclusion

Now that you know how stress-free it can be to look for a profitable rental property, we bet that you will start being on the lookout for more profitable Airbnb markets. That’s understandable because short-term rental analytics from Airbtics can help investors be more cautious or aggressive in their prospective Airbnb venture. 

See for yourself if you’re maximizing profit from this free Airbnb Calculator used by beginners and pros.

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

Unlock Worldwide
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Find unsaturated neighborhoods with the highest occupancy history.

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Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Seattle


Table of Contents
    Add a header to begin generating the table of contents

    What is Rental Arbitrage?

    Rental Arbitrage is a method similar to house hacking. But unlike house hacking in Rental Arbitrage, you don’t own the house. Instead, you convince a landlord to lease you a property which you then furnish and sublease on Airbnb and VRBO.

    Rental Arbitrage is a really good method to do in multifamily houses, duplexes, or triplexes. You can easily use the money from your short-term rental to pay off your lease and also profit some more. If done right this can be a full-fledged business in itself. If you own a duplex or triplex then it is pretty straightforward. You can live in one section and rent out the other. This is known as house hacking. People use this after taking a loan on a property and use the rent to pay off the mortgage. The short-term rent helps you pay for the long-term lease that you have on the house. This helps you keep the difference at the month-end after paying for the long-term lease. Let’s take an example to help you understand Rental Arbitrage better.

    Assume you are renting a duplex in Seattle for $1,800/month. You are living by yourself on one of the sides and you decide to sublease the other on Airbnb. Let’s say you listed it for $100/day and got 80% occupancy. This will bring in approx $2,600/month in revenue. Not only will it help you pay off your complete rent, but give you a profit of $800. This, in a nutshell, is called Rental Arbitrage. 

    Things to do before getting started?

    How to convince the landlord

    Let’s say you want to get into Rental Arbitrage. Now comes the big question, how to find a good property and how to convince the landlord. Later in the blog, we’ll be explaining how to find a good property by doing proper research using short-term rental analytics. In this section, we will be focusing more on how to convince landlords. As you’ll begin your Rental Arbitrage journey, you’ll come to know that this is the hardest part of the whole process.

    You need to be prepared and well researched, good communication skills come in handy here. Also, one thing to always keep in mind: never sublease without informing the landlord, there will be a huge number of people coming in and going out when you’re sub renting, it will not be hard for the landlord to figure out that you are subletting and you might end up getting in trouble.

    For the convincing, rule number one is always talking about the upsides. If you can rent the property on Airbnb, so can the landlord himself. You need to make a deal with the landlord that is beneficial to them. So they lease the property to you instead of renting it by themselves.

    Learn the step-by-step procedures of Rental Arbitrage and become a pro in the business!

    Points to tell an indecisive landlord.
    • Doing Rental Arbitrage is a full-time business. It doesn’t generate passive income like long-term leasing. You should try approaching older people who are looking for some sort of passive income. They are more likely to agree to a fixed long-term lease. You can also reach out to full-time working professionals or business owners. They will also be happy with a source of passive income till their property is well maintained. This brings us to our next point.
    • You are more likely to take care of the house than a normal renter. As you are using the property to do business you will take good care of it to make sure you get better reviews. Having a beat-up property isn’t good for business and you are more likely to monitor it often. Not monitoring it will affect your revenue a lot. You may end up paying a huge sum of money for damages done by someone else. So telling this to the landlord might instill some confidence in them.
    • You can ensure timely monthly rent. You can tell the landlord that doing Rental Arbitrage is a full-time business with ups and downs. It doesn’t guarantee fixed income at all like long-term leasing. But if they lease it to you, you’ll make sure to pay the lease no matter what. Either from the money made after rental arbitrage or from your savings. You need to ensure timely monthly lease payments to gain the trust of a landlord.

    In conclusion, you need to take care of the property like your own. Make sure to timely pay the monthly lease and keep the situation beneficial for both parties.

    Ensure the Property and Gain landlords’ trust

    Being on the safe side is always a good idea. From trouble guests to bothering landlords. You need to make sure you are using the right tools to ensure the property is safe and neighbours are happy. Many landlords will have this concern when renting out their property to you. They will be worried about neighbours raising noise complaints. It is a legitimate concern. To help you with all these problems, here are some suggestions that you can implement and have peace of mind.

    • Simply Safe – These are home monitoring tools that you can install in the house to make sure no suspicious activity is happening there. Make sure to let the guests know about them and have their consent.
    • Auto host – Automatically screens problematic tenants.
    • Alexa Guard: If you already own an Alexa, you can use its Alexa guard feature to detect parties. It is an inbuilt feature that monitors changes in sound and sends you an alert in case the guests are having a party and making too much noise.
    • InsuraGuest – This insurance and tech company helps you with risk analysis and gives protection beyond Airbnb and VRBO policies.
    • Airbnb Profit Calculator – Give your landlord ease of mind by providing income estimates backed by Airbnb data.

    You can integrate the majority of these tools with a PMS of your choice.

    Airbnb data

    Pro’s and Con’s

    rental arbitrage pros and cons

    The initial cost of starting Rental Arbitrage Seattle?

    You can expect to spend anywhere between $3,000 to $5,000. This cost consists of everything including deposit, furnishing, amenities, legal paperwork, and LLC Incorporation.

    But doesn’t this contradict the low upfront cost of Rental Arbitrage? Well, these estimates vary from city to city. There is a possibility to do Rental Arbitrage for even less than this depending upon your situation and the type of property you lease.

    Still, the amount is much less than investing in a new property and getting a mortgage of thousands of dollars. Plus you won’t be on the hook for property maintenance expenses and being stuck for years with debt.

    But this doesn’t mean Rental Arbitrage can be done with no or very tight budget. There will be some upfront costs that you would have to bear. Having some extra cash is also a good thing to have. It will help pay off the lease in not-so-profitable months in case bookings don’t happen right away.

    Expense 1: Rental Deposits

    A rental Deposit is going to be one of the first and major expenses. You would need money to be able to sign a long-term lease with the landlord. For that, you will need a Security deposit, First and Last month’s rent. Sometimes you can negotiate with the landlord and use the first month’s rent as a security deposit.

    Expense 2: Furnishing

    Most of the time you should always aim to lease a place that is semi-furnished. As someone with a fully furnished home might be doing short-term rentals themselves. Also furnishing a place from scratch can add anywhere from $3,000 to $5,000 to your initial capital. Not choosing the right property can make Rental Arbitrage not so low cost, so choose wisely.

    If the place is semi-furnished, then your best bet is to shop cheap for the rest of the stuff. You can go and find cheap supplies from places like Home Depot and IKEA. Sometimes even Walmart can have a hidden gem if you look closely.

    Expense 3: Photography

    Do it yourself!!! iPhones have good cameras. Will save you some money.

    Expense 4: Cleaning Services

    This is not a starting cost, but you will end up spending on cleaning eventually. The best way to save money is to do it yourself initially if you have the skills and experience.

    If you have no experience or you don’t want to invest time in cleaning a place. Then your best bet will be to hire a professional cleaner. This can cost you anywhere from $50 to $250 depending upon the size and location.

    Maintaining a professional relationship with a Real Estate lawyer can be very helpful in the Airbnb business. Airbnb regulations keep updating and you would need some legal guidance on the way to adjust your business accordingly.

    They can also come in handy if you face any legal issues with the landlord or guests. They can help in damage claims and insurance as well in case of any mishappening.

    Legality and Regulations in Seattle

    License Criteria

    The City of Seattle’s short-term rental code sets clear rules and license needs for short-term rental hosts. You may need to apply for one of four distinct types of licenses. 

    Here’s a quick rundown of each license:

    Tax certificate for a business license

    Business license taxes are payable by anyone providing short-term stays in Seattle. It is necessary to get this certificate before applying for your short-term rental or bed & breakfast operator’s license. Each calendar year, a Seattle business license is valid until the end of December. For all your listings, you only need one business license. Each calendar year, a Seattle business license is valid until the end of December.

    Operator’s license for STRs

    If you want to host short-term stays in Seattle, you’ll need a short-term rental operator’s license. Short-term rental licenses are set to expire on their anniversary date. The City of Seattle allows you to apply for a license online. You’ll need to add the number and end date to your Airbnb listings once you get your short-term rental operator’s license.

    A short-term rental operator’s license permits you to rent out up to two of your own housing units for brief periods of time. Your primary house must be where you keep your motor vehicle, driver’s license, voter registration, or other similar documents, the city says. The other could be a supplementary dwelling, such as a vacation home or second home, that you also own.

    Ordinance on Rental Regulation and Inspection (RRIO)

    If you host a second house, such as a vacation home or second house, you’ll need a Rental Registration and Inspection Ordinance (RRIO) registration number. By meeting these requirements, the property can be inspected by the city.

    It’s worth noting that RRIO demands an inspection during the first two years of registration. You don’t have to wait for an inspection before applying for an STR license.

    License for a bed and breakfast operator

    A bed and breakfast operator’s license is necessary if you operate a bed and breakfast. The City of Seattle allows you to apply for a license online. The license is $75 and has an end date. You’ll need to add your bed and breakfast operator’s license to your business license after you get it.

    Taxes on the local level

    Rentals within the city of Seattle are subject to a short-term rental tax. Yet, inside the state of Washington, Airbnb collects and remits state and local taxes on your behalf. The guest handles all state and local taxes.

    Use of the land

    Land use in Seattle neighborhoods is governed by the Seattle Land Use Code. In Seattle, short-term rental is a type of lodging operation that involves renting a dwelling unit, including a partial unit, for less than 30 consecutive nights. Some types of properties, such as waterfront properties and properties on the water, such as houseboats, do not allow short-term rentals. Other standards that pertain to your property, such as parking and noise rules, must also be met.

    Code of the Building and Construction Industry

    The Seattle Building and Construction Code covers construction, design, maintenance, habitability, health, and safety. Unless they are RVs, tents, garages, treehouses, tiny houses, boats, or live/work units, you can arrange short-term rentals in most buildings created as dwellings.

    Reference|Airbnb.co

    Best areas for Rental Arbitrage in Seattle

    Some obvious places come to mind when thinking of Seattle like West Seattle, Central District, and many more. According to Airbtics Dashboard, two of the best areas to invest in Seattle are:

    1. Wallingford
    Rental Arbitrage Seattle

    According to our Airbtics Dashboard, Wallingford is the top market to start your Rental Arbitrage business. Currently, there are overall more than 132 Airbnb properties with an average occupancy rate of 89%, a daily rate of $152, and annual revenue of $50,102.

    2. Ballard
    Rental Arbitrage Seattle

    According to our Airbtics Dashboard, Ballard is the second-best market to start your Rental Arbitrage business. There are more than 193 Airbnb listings with an average occupancy rate of 88%, a daily rate of $133 and an annual revenue of $46,004.

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