In 2022 Airbnb added 20% more properties to its inventory. It’s predicted that the short term rental market will continue to grow. And a good portion of that growth will be in single family homes. This added inventory will require investors to buy properties. And that can signal a potentially lucrative group of buyers.
Short term rental investors can be beneficial clients. They have a specific type of property they are looking for, but since they won’t be living in the property, they may not be bogged down by the personal preferences of traditional buyers. These investors may use cash or hard money, but they are more likely to be looking at a mortgage on the home which they can pay with the monthly proceeds of renting. To make better inroads with this market, there are some tangible steps you can take to become their “short term rental agent.”
How to Capitalize on the Airbnb Investor Market
Understand what makes appealing properties in your area.
Try to talk to local Airbnb owners (they could become new clients). They can provide insight into how popular their property is. From there you can ascertain data about amenities and locations, which can provide valuable insight for your clients.
Become an expert in apps and short term rental technology.
It’s important to speak the short-term rental language. Just like you wouldn’t simply slide over to commercial clients without doing your homework, the same is true for short term rentals. Understand the various short term rental platforms and how they work. Learn about supporting software, like automation messaging services and rate monitoring systems.
Be the zoning expert.
As short term rentals grow in popularity, so do the regulations. It’s essential to understand where short term rentals are allowed and where they are not. What are the legal requirements that owners need to meet? What forms, licenses or other hoops will they need to jump through? You’ll be able to guide your clients to the most short term rental-friendly regions.
Become a vocal advocate in your area.
When new regulations are proposed, be the voice and advocate for short term rental owners.
Run the numbers.
You’re a real estate agent. Crunching numbers is second nature. Rather than just presenting comps and potential rental property income, offer comps on short term rental fees. How much earning potential does a property hold? This is invaluable information for potential investors.
Market your expertise.
Write blogs providing local Airbnb advice, record videos giving tips for local hosts to post on social media. Becoming known as “the Airbnb agent” in your area can provide a steady stream of inquiries and a new crop of potential clients.
Offer advice to investor groups.
If your region has investor groups, it’s helpful to get to know this fruitful source of leads. You can provide insight or offer to give a presentation. Just remember they are usually seasoned pros, so the information needs to be relevant and helpful. That said, since short term rental is still one of the newer forms of investing, many investors are still amateurs or new to the format.
Use Short Term Rental as a Seller Alternative.
Many homeowners have never considered Airbnb. Sure they may have stayed in a short-term rental, but it’s never crossed their mind to be a host. This can be especially helpful for a seller who wants to move while their house is on the market. You can be the resource to help them earn potentially thousands during this transition time.