With the rise of online vacation rental platforms like Airbnb and VRBO, more and more property owners are considering turning their homes or investment properties into short-term rentals. While the potential rewards of this venture can be significant, there are several important factors to consider before taking the leap. In this blog, we’ll explore some key considerations for determining whether a property would make a good short-term rental, including location, size, amenities, condition, legal considerations, competition, and price. Whether you’re a seasoned real estate investor or a first-time host, understanding these factors can help you make an informed decision about whether short-term rentals are the right choice for your property.
Location, Location, Location
When it comes to making a property a good fit for an AirBnB, there are several factors to take into account. Location is perhaps the most crucial factor to consider. Ideally, you want to choose a property that is located in a popular tourist destination or an area with high demand for short-term rentals. However, if your property is not located in a tourist area, being close to schools, hospitals, arenas, event facilities, or parks can also help to draw in guests.
Room to Relax
The size of the property is another essential consideration. A larger property may be suitable for families or groups, while a smaller property may be more appealing to solo travelers or couples. If you plan on allowing pets, a fenced yard can be a huge selling point.
Amenities for an Experience
Amenities are also important to guests. Providing desirable amenities such as a fully equipped kitchen, laundry facilities, or Wi-Fi can make your property more attractive to potential renters. Additionally, providing extra linens, towels, and robes can enhance the guest experience, making it more likely they will leave positive reviews. As Alicia Newman from Slumber Spokane advises, “You have to make it an ‘experience’ just throwing some bedding together, a couch, and kitchen won’t cut it.” It’s essential to go above and beyond to create a memorable stay for your guests.
Wear and Tear
The condition of the property is another critical factor. A well-maintained property can improve the guest experience and lead to positive reviews, which can ultimately lead to more bookings. Regular maintenance, repairs, and updates are necessary to keep the property in top shape. A fresh coat of paint, new furniture, and updated appliances can all contribute to the overall appeal of the property.
Legalities
It’s also essential to check local laws and regulations to ensure that short-term rentals are allowed in the area and that you have all necessary permits and licenses. Some cities and states have specific rules and regulations regarding short-term rentals, including taxes and registration requirements. Failure to comply with these rules can result in significant fines and legal issues.
Consider your Competition
When assessing the potential for success of a property on Airbnb, it’s important to research other Airbnb properties in the area to determine the level of competition and the demand for short-term rentals. This research can help you to identify any unique selling points or areas where you can improve your property to make it more attractive to guests.
Cash Flow Potential
Finally, it’s always a good idea to seek counsel from a professional in your area who specializes in marketing these types of properties. A local Realtor or property management company can provide valuable insights and help you determine whether your property would be best suited as a short-term, mid-term, or long-term rental. They can also provide advice on pricing, marketing, and other key factors that can impact the success of your Airbnb property.
Remember, offering a unique and memorable experience is key to standing out from the competition and attracting guests. So, consider going above and beyond with the amenities you provide, like board games, fire pits, highlighting local business and artists in the art and gifts you provide, creating a dedicated workspace, or prioritizing a high-end coffee maker. One of our favorite tips is having robust local guides available for every guest to be able to navigate your neighborhood with.
If you’re interested in exploring the possibility of using your property as an AirBnB or any other type of vacation rental, we recommend consulting with a professional in your area. A local real estate agent or property management company can provide valuable insights into the local market, regulations, and best practices.
Finally, if you have any questions or comments, please feel free to reach out to us. We’d love to hear from you and help in any way we can whether it’s consulting for the Spokane & North Idaho areas or referring you to professionals in your own town. We have a robust network we would love to share with you!
