Real estate hospitality is a lucrative industry for good cash flow. People are traveling around the world more than ever before. According to the USTravel.org, there were 2.3 billion domestic trips in 2018, of which 80% was leisure travel. The large number has increased by 2% in the past year. It’s an understatement to say that it’s a very active market!
The problem is most people cannot afford to build their hotels to take advantage. But with Airbnb, the market for short term rentals is now accessible to people with limited capital.
Airbnb has immensely disrupted the hospitality industry. It’s the biggest real estate hospitality company without even owning a single property. Based on statistics, there are:
- 150 million Airbnb users worldwide
- 6 million Airbnb properties worldwide
- 1.9 million listings can be booked instantly
In the United States alone, there is a 45% increase in year-to-year bookings. Airbnb hosts earn an average of $924 a month.
With a 38 billion company valuation, it’s expected to grow further in the long run.
However, these are just numbers. What made Airbnb a good business? These are six reasons why you should try short term rentals, like Airbnb.
You Can Leverage on Other People’s Properties
You might wonder how can you participate when you do not have money to buy a property? That is a valid concern! However, like how Airbnb does not own a single property, you can follow that example too.
You can leverage other people’s properties and list them on Airbnb! With the US residential rental markets going on a decline, some landlords may opt to lease their properties for you. But usually, you’re charged higher because you will use the property for business.
Travelers Prefer Airbnb
The hospitality market is changing. More and more travelers want to immerse themselves with the culture of the destination. They want a different experience than what they would get if they were at home.
What is the best restaurant the locals go? What are the off-beat locations that locals suggest?
They want to engage with the neighborhood. Aside from being relatively cheaper than hotels, Airbnbs can immerse its guests to live like a local.
You Can Set Your Prices
With Airbnb, you can set your rental prices. You can even offer discounts if they stay for a week to a month. But of course, check the demand for that season and your competition.
Listing a Property is Free of Charge!
Most real estate firms charge you for listing your properties in their market. Listing a property on Airbnb is free of charge! You do not have to deal with any extra costs.
Secure Collection System for Both Guests and Hosts
If you have been a landlord, it’s quite hard to collect money from people who owe you. With Airbnb, you have a secure collection system designed to protect both the guest and the hosts.
When a guest books a property, the amount is kept for 24 hours after they check-in before they release it to your account. You do not have to get cash payments from them in person.
Airbnb Insurance up to $1 Million
The most significant worry of a host is property damages. What if your guest steals your items or damages your property, what can you do?
Airbnb offers a $1 million protection insurance for you just in case it does happen. Read the fine print because not everything is insured.
If you want additional insurance, you can get affordable Airbnb host insurance if you know where to look.