Earl V. MeisterWith rates as low as $0.25/night, Airbnb is a super popular platform for travelers around the world to find lodging options in their destination city or location. While it’s become one of the most lucrative business ideas ever thanks to its profitable growth, many people wonder if this trend will continue moving forward into 2022 and beyond.
Airbnb has been around for a long time, but is it still worth it in 2022? The answer might be yes. If you want to invest in Airbnb, there are some places that have the potential to do well in the next few years.
Kyle Stanley, also known as The Fearless Investor, is a real estate investor who focuses on Airbnb. He grew his Airbnb company to seven figures in less than two years, despite not owning any of the apartments he listed. So the year is 2022. Rents and real estate prices are both rising. Is it still worthwhile to use Airbnb? When Covid struck, everyone expected the real estate market to implode, yet the reverse occurred throughout much of the United States.
UP NEXT: How Does This Compare To An Airbnb Business?
“And before we knew it,” Kyle adds, “Airbnb wasn’t being harmed all that much, but as an investor, as someone seeking to purchase a property, it became this enormous issue of, ‘Man, is Airbnb really worth it?’” I was just browsing on a website the other day, and it claimed that national rent increased by 9% in the previous year. And when I dug further, I discovered that real estate prices had increased by sixteen-point-two percent countrywide since 2020.”
What’s the good news? If you look at property analysis tools like AirDNA, you’ll see that nightly prices on Airbnb have risen over the past year as well. So, yes, there is still profit potential. Kyle, on the other hand, provides five things you should think about before starting an Airbnb company in 2022. First and foremost, is it legal where you live (or want to do it)? There are a number of short-term rental regulations that are being implemented and repealed, so you need to remain on top of it.
Second, market analysis requires you to get your hands filthy. Again, utilize the available software, tools, and calculators (simply Google ’em) to see whether the figures make sense. What do you think your nightly rate will be? Occupancy? After all expenditures have been paid, what is the net profit? Knowing nothing about these things and going into it blindly hoping for the best? Yeah, losing tens of thousands of dollars with your Airbnb company is a terrific way to do it.
The third category is risk factors. Kyle continues, “For me, you want a three-to-one short-term to long-term gross revenue ratio.” “Keeping it simple, if you have a home that you might rent out for a thousand dollars a month as a long-term rental, you want to get as near to three thousand dollars as an estimate for your monthly rent as possible as a short-term rental.” That three-X figure will not only help you pay off all of your furnishings and early costs, but it will also lower your risk by allowing you to make that much more money.”
“The other half of the risk aspect,” Kyle says, “is whether or not you’re earning 33% margins?” That’s my favorite statistic to look at since it informs me whether or not this is a dangerous business. So, on a three-thousand-dollar gross, you’re netting a thousand dollars. Why is this essential, and why do you want to be at 33% or higher? Because it indicates you’re breaking even sooner in the month. What if there’s another Covid? What if it’s a sluggish season for you? What if it has to be shut down for a week for maintenance? If your margins are any smaller than that, it’s simply too hazardous.”
Do you have a back-up plan, fourth? If Airbnb doesn’t work out, can you change the house into a long-term rental? And, let’s suppose you purchased the home and your monthly mortgage is $1,000; you’d better be able to locate a long-term renter who can pay at least that much, if not more, so you can at least break even each month (while the equity builds). Is this the fifth and last time? Is it possible for you to add value to the property? Is there a separate garage, for example, that you might convert into an additional room to increase the property’s cash flow? Airbnb could still be worthwhile in 2022, depending on your responses.
HOW TO COLLECT RENT CHECKS ONLINE IS NOW IN VOGUE.
Katie Smith: Watch this brief video if you want someone who will tell it like it is, respect your time, and show you a company that could really work for you.
The “best airbnb 2022” is a question that has been asked many times. Airbnb is still worth it in 2022, but the company will need to work on their customer service and make sure they are up-to-date with the latest technology.
Frequently Asked Questions
Is Airbnb a good investment 2022?
Is Airbnb profitable 2021?
A: Unfortunately, we cannot answer this question.
Does Airbnb have a future?
A: Yes, in the future Airbnb will have a bright future.
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Earl V. Meister