Property Investors Making Money from Airbnb Rentals is Part 8 of our 14 Part Series.
Buying properties to rent out is a practice that’s gone on for centuries.
It’s a smart business move to buy a place and let someone else live in it.
You not only make money, but you also use the rental income to pay off the mortgage on the place.
Property Investors Making Money from Airbnb Rentals
There’s a better way to make money than just buying properties and renting them out the traditional way.
By buying properties and then listing them on Airbnb as vacation rentals, property investors have the ability to make a lot more money both short term and in the long run.
In fact, there have been studies that show that using Airbnb makes better financial sense for investors than traditional rental methods.
The key thing about investing is that you want to be able to recoup the money you’ve paid out.
If you plan to do that through traditional renting methods, you’re going to wait about two and a half decades to get your investment fully recouped.
However, if you decide to use Airbnb, that time is significantly cut.
Pay Off Your Mortgage in 7 Years
In fact, the studies have shown that you can end up making enough through short term rentals to pay off the mortgage of the property about seven years.
That’s a huge difference in time as well as money.
It boosts an investor’s financial portfolio as well as helps to create a financial cushion the more you invest and rent out on Airbnb.
The good news is that the time it takes to recoup your investment depends on where you buy your rental property.
In some of the high demand locations, the houses or apartments cost a lot more. So it might take you the entire seven years to be able to pay off the mortgage of that property.
It will take longer to Retire a Mortgage in some Countries
But in other areas, it won’t even take you the seven years to that.
You can buy a property in a popular area, but where housing just doesn’t cost that much.
You can find that you end up recouping the cost of your investment in as little as three years.
The time that it takes to make your investment back also depends on where you buy.
If you’re buying property in North America, your pay back time may be longer or in foreign countries – pay back is shorter.
In other countries, you also stand to make a quicker financial payoff than in other places.
While you’re paying off that mortgage, you’re also making immediate money.
Depending on how you rent out the place, you stand to make quite a lot.
You can rent out the property nightly, which tends to bring in more income.
Other options are to rent it out by the weekend, weekly or even for longer, short term stays.
Investing in property for Airbnb is a smart financial move because the amount of money that you’ll invest is small, compared to the amount of profit that you stand to make.