Investing in real estate for Airbnb is the new trend, now in 2024 a new business model that investors around the world are turning to see, as there is a high demand for travelers looking for accommodation, health security and privacy to suit them.
Currently a very profitable business is to invest in a property to offer it for rent for days, weeks or seasons; Airbnb is the best option a leading travel platform, so it becomes the right way to take advantage of your investment.
To make an investment in which you get benefits from that property in which you want to place your capital, it is necessary that you first know the following to ensure your financial movement.
How to invest in Airbnb?
Houses and apartments as an option
Houses are an excellent option for families and traveling groups that need more space and represent a good alternative to hotels because of the privacy they offer. At the same time you can rent the house by rooms, as many Airbnb hosts do, this way you can have a much higher profitability, likewise, when it comes to large groups those with amenities such as pool, terraces and several bedrooms are the most preferred.
However, nowadays, according to occupancy statistics in general they tend to have less demand since the new needs of travelers are more inclined towards smaller properties and with essential areas, of course depending on the city and location. This varies a lot depending on the city where you are investing, it is not the same to invest in big cities like Mexico City, New York or Monterrey, vertical cities where buildings abound and apartments are common, than in small or developing cities, a coastal location where there are more houses than apartments. In large cities it is best to opt for apartments, while in smaller cities or coastal areas the best option is houses. Visit here our listing of houses in Merida, state of Yucatan, a city in Mexico considered one of the safest developing cities in America, where a very profitable business is to invest in Airbnb, being this one of the most visited cities in this country.
INVESTING IN AIRBNB SHARES
Another alternative is to invest in AIRBNB shares. You can invest in their shares from your favorite stock market application or also called Forex, FX or Currency Market, you can find Airbnb on the stock exchange as ABNB. At the time we are writing this paragraph, its shares are around $200, an excellent option to invest in the stock market. We should mention that investing in the stock market requires some experience or knowledge, many people lose money in Forex.
How much do I earn on AIRBNB?
Profits with houses in Airbnb
It is undoubtedly one of the best options to invest by this means, more comfortable and profitable to invest in Airbnb, since in many cases the rent of apartments is more complicated by the condominium regime, the owner of a property on Airbnb, specifically in a house, gets to earn around $77,000 MXN per month for an average of 25 nights of occupation.
Profits with Airbnb apartments
The numbers don't lie and the profits of those who decided to invest in Airbnb have been growing according to information published by the company. Angel Terral, CEO of Airbnb in Mexico, confirmed that the platform grows year after year by 75% in the country.
In a study conducted together with the firm NERA Economic Consulting, it was also revealed that the owner of a property on Airbnb, specifically an apartment, earns around $47,000 MXN per month for an average of 25 nights of occupancy. On the other hand, these figures are even higher in Quintana Roo, where a "host" earns an average of $75,200 MXN per month for an average of 27 nights.
Official Airbnb figures reflect that users prefer to stay in a room or apartment as opposed to a full house, there is a 60% preference for apartments or rooms and 40% for houses.
Definitely investing in Airbnb is a profitable business when you plan to buy the ideal property in a strategic city or beach, know the properties and houses in Merida.
The city of Merida is within the most profitable cities to invest, get involved in this new way of doing business in hosting, Merida, Mexico, is considered one of the best cities safer and prosperous in America, for its great quality of life and growth in recent years has been the favorite place to invest and live for many locals and foreigners, know the best areas to invest and areas to live in Merida Yucatan.
What are Airbnb's basic requirements for hosts?
According to Airbnb, To help create comfortable and reliable stays for guests, they ask all hosts to meet these basic requirements for each accommodation:
Respond
Maintain a high response rate by responding to inquiries and booking requests within 24 hours.
Accept reservation requests
Make guests feel welcome by accepting requests when you are available.
Avoid cancellations
Airbnb takes cancellations very seriously and asks all hosts to avoid canceling on guests, as their travel plans depend on it.
Maintain a high overall rating
Guests like to know that they can expect a consistent level of quality, no matter where they book.
Your progress is measured by comparing to the average performance of all Airbnb hosts. Listings that are consistently below average may be subject to penalties.
Offer basic services
We strongly encourage hosts to offer basic amenities in all of their accommodations, as these are the items that guests find important for a comfortable stay. This includes toilet paper, hand and body soap, towels, sheets and pillows.
What are basic amenities?
Basic amenities are the essentials that a guest expects in order to enjoy a comfortable stay. They include:
Toilet paper
Soap (hand and body)
One towel per guest
One pillow per guest
Bed linen for each bed
Airbnb service fee -Types of fees:
Airbnb charges a service fee to hosts (Owners) when a reservation is confirmed, to understand how much Airbnb charges a service fee? We explain below the types of fees:
Fees for booking an accommodation
Airbnb has two different service fee structures for booking an accommodation: a shared fee between hosts and guests and a host-only fee.
Shared rate between hosts and guests
The shared rate between hosts and guests is the standard structure for hosts of individual accommodations.
Host Service Fee
This fee is 3% for most hosts but may be higher for hosts in Italy or accommodations that have a super strict cancellation policy. The fee for hosts managing accommodations located in mainland China is 10%. This fee is calculated from the subtotal of the reservation (the nightly rate plus the cleaning fee and additional guest fee, if applicable, excluding taxes and Airbnb fees) and is automatically deducted from the payment the host receives.
To see the service fee charged by Airbnb for a particular reservation:
Access your Transaction History on Airbnb
Click on the code next to the reservation you want to review.
Under Charging, you will find Airbnb's Service Fee
Guest Service Fee
Generally, this fee is less than 14.2% of the subtotal of the reservation (the rate per night plus the cleaning fee and additional guest fee, if applicable, before taxes and Airbnb fees are applied). The rate varies based on various booking factors and is displayed to guests during the checkout process, prior to confirming the reservation. Guests booking accommodation in mainland China do not need to pay a guest service fee.
If Airbnb is required to charge VAT, the service fee and VAT amounts will be added together on the checkout page, which may make the service fee appear higher.
Host-only rate
The host-only rate structure was created to give hotels and other hotel companies more control over the final price paid by guests. The host-only rate ranges from 14% to 20% (plus 2% for accommodations that have a super strict cancellation policy and is the mandatory rate structure for hotels and other lodging companies. The commission for hosts of accommodations located in mainland China is 10%. Property managers connected to the software can choose between a commission for hosts only or one shared between hosts and guests in the Service Fee tab under Payment & Charges.
How do I start investing in Airbnb?
Joining this platform, putting your apartment on the market and enjoying the benefits of investing in apartments is quite simple:
1.- Create an account
The registration process is free and not very different from any other online platform. However, if you want your profile to be much more attractive, you must be very specific with the information you share and do it in a friendly way so that it is attractive to all potential guests.
On the other hand, it is recommended that you confirm your identity in the profile and add a clear picture of yourself. Additionally, if you synchronize your profile with your Facebook, Google or LinkedIn account, you will become a much more reliable alternative.
2.- Set up your registration
The site will provide you with detailed guidance during this process. Want to know how much to charge per night? The platform provides you with a calculator that will help you determine the suggested cost per night based on the number of rooms, location, prices of surrounding properties and the additional amenities you provide.
On the other hand, if you only want your property to be available for certain days, there is no problem. You can configure it in the calendar, which will show your accommodation available only on the dates you specify, which gives you a flexibility that you would not get when renting properties in a traditional way.
3.- Describe your apartment
At this point, the objective is to faithfully reflect the particularities of your property through the description. It is here where you should take advantage of each exclusive feature that your apartment has: a privileged view, easy access, number of bedrooms, air conditioning, dryer, wifi, Netflix, everything. Remember that this section is the one that attracts people the most.
4.-Photographs of the property
The best way to complement the description of the place is through a good set of photographs. Do not forget that everything enters through the eyes; therefore, the images that you upload must be of high resolution and with bright colors so that they are attractive. It goes without saying that the place should be tidy and clean at the time of taking them.
It is advisable to take the pictures during the day and with plenty of light. Try to capture every detail of the advantages that the apartment offers. Also, if you have green areas or a particularly beautiful neighborhood, the images of these places will show multiple complementary advantages to your space.
How to achieve success on Airbnb?
Once you start using the platform, you should focus on offering hospitality, as this is a key factor. Why is it so important? Well, hospitality generates good ratings on the site, which is very attractive to maintain a steady flow of renters. Now, in order to get positive reviews, you should pay attention to the following aspects:
Always update your information.
Keep an organized calendar so that the platform knows when your property is available. Also, you should make sure to share with users all the information related to the accommodation in order to make the booking experience as easy as possible.
Commit to bookings
Always prioritize to meet the deadlines of the reservations, so you should try to have the accommodation ready in advance. Avoid canceling reservations, as this will only result in a negative review, and if you are forced to do so, do it in advance.
Be accurate
Share only truthful information in order to set realistic expectations about what you are offering and the price of your property. Otherwise, your account may be suspended. Know the best areas to live in Merida
Visit our list of Merida Real Estate and homes for sale in Merida.