Why is short stay the new trend for real estate investing?
By Reshan Jayamanne, Founder.
When thinking about short stay accommodation we often refer to motels, hotels and resorts. However, have you ever thought about your investment property being among one of these?
With technological developments of apps such as Airbnb, the hospitality and real estate industry has been disrupted and birthed a new opportunity for investors to have an uncapped measure of reward from their asset. Airbnb has become a popular choice for the smart investor to position themselves to gain higher revenue month per month verses the traditional rental market. However, buying and managing short stay accommodation property can be tricky but not impossible and this is where we step in. Let me walk you through some key points on how you as a home owner or investor can take advantage of the future sharing economy and by getting in early to hedge your investment property for years to come.
You’re probably wondering, so many questions we get asked on a daily basis and I’m going to try tackle a few of them below for you. If you haven’t already heard, the new economic trend is the sharing economy. Uber being one of them is a platform that allows strangers to take you to a chosen destination. Or amazon which allows users to make money off their system and yet hold no products to their name. Can you imagine giving your kid to a stranger to drive them to school every morning? This is common these days among many busy families who give their kids Uber passes to get anywhere they want. 10 years ago, this would have been ludicrous, but not anymore. Similar to this, Airbnb has changed people’s perspectives on the sharing economy and put to sleep the taboo of entrusting your highest asset (for some) to a complete stranger. There are some risks, don’t get me wrong, but you must learn how to manage those risks to protect your asset and that’s something very important to us here. Despite the risks however, the reward is worth it.
“It’s like owning your own virtual hotel, but we control it so you don’t have to worry about anything but simply get paid over and over and over again. “
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So how does it work?
You simply put your property online on a short stay accommodation site and simply wait for the guests to come. Sadly, it’s not that easy anymore. Unfortunately, with the competition out there, it’s not as easy as you might think but you can imagine it becoming harder and harder as time goes by hence why it’s so important that you begin as soon as possible to build credibility online with the platforms to ensure you’re consistently booked. Now, I know what you’re thinking. Running an Airbnb property must be time consuming right? At times, yes. We advise that only the active investor take up running their own property or else you will burn out. As a host, you are responsible for many procedures that must be executed with precision in order to gain high reviews which directly equate to high reward (money!). If you can do this and cut through the competition, go for it! Give it a go.
Now for the passive investors out there, you need to know that you can still do this business, without doing anything. The passive investor is best to do one of two things in this scenario.
- Stick to the traditional method of investing and still go with a short stay management company such as Bnb Optimized to manage your property and give you your chosen rental amount at market value.
- Simply hand over the property to Bnb Optimized and watch us supercharge it to bring you consistent returns. We like to call this letter box money. Do nothing and get paid.
Either of these methods are totally viable and advised to the smart investors out there. If you’re curious about this opportunity and want to see how you can take advantage of it, let hop on a call and have a discussion about your property. Book a call below and I’ll see you on the other side.
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