If you’ve been paying attention to the economy, you know it’s becoming more popular to have a secondary income stream. While you can always work for your money, having something on the side to see you through the lean times or to pad your retirement account is always helpful. If you’re like many in the Phoenix region, you might want to tap into your own secondary income stream by starting an Airbnb business.
The benefits of an Airbnb business
Every business poses risks, but some have rewards that are so great that taking a chance is a given. Airbnb does require you to rent out your property, but it can bring in a tidy profit when done right. If you’re thinking about Airbnb, you might want to look at the reasons as to why it is particularly well-suited for the Phoenix area. Below are a just a few examples of why it works so well.
A thriving economy
Phoenix is already a very popular city for businesses. A number of major names make their homes in the city, as do a few of the more promising startups in the country. What’s amazing, though, is that Phoenix has not yet peaked. It is still a city in the midst of a growth spurt, and that means that more people are becoming interested all the time. When they come into the city to find out whether they want to make a permanent move, they’ll need a place to stay – and that’s where Airbnb comes in.
Airbnb is becoming more popular for people on business trips. Not only are the prices comparable to what you’d find in a typical hotel, but using Airbnb allows for a bit more comfort after a long day at work. If you’re looking for a way to really attract some of the travelers to the city, Airbnb is a great place to start.
Phoenix certainly has a growing real estate market, but it’s not quite as competitive as in some other high-priced areas. While the market continues to be active and more popular as years go by, it’s still very possible to pick up a new property at a very reasonable price in the area. This makes Phoenix a place that’s uniquely suitable for Airbnb investors, as they’ll be able to get the most out of their property investments.
This is just basic economics at play. The lower the price of a home, the lower the mortgage note, and the more profit you’ll make for each day you rent out an Airbnb property. When you buy at a lower price, you can make your money back more quickly and eventually transition into making a profit full-time. Even those who rent out just to supplement their income can take larger chunks out of their mortgage note due to the lower overall home prices in the area.
Phoenix is an incredibly friendly city for visitors. Not only is it near a number of great locations, but the city itself hosts a number of unique events and fantastic locations that are sure to keep bringing in visitors for years to come. It’s become very common for tourists to look at Airbnb rentals to keep them close to the action rather than hotels. This is especially true if they are looking to have a long-term vacation rental that will allow them to experience the comforts of home.
More than anything else, it’s the location of Phoenix that will continue to make Airbnb a good investment for property owners. The fact that it’s located so close to so many tourist-friendly spots means that there’s never a shortage of people looking for a place to stay. If you’re willing to put in a little work and hire a property management service to take care of your rental property when it’s not in use, you too can benefit from the sharing economy.
Good revenue stream
Airbnb represents a unique type of revenue stream from property owners. It’s not quite a rental property, which would require the owner to deal with long-term rental contracts and have to deal with some of the vagaries of landlord-tenant law. It is, however, something that allows a property owner to leverage his or her interest in a property into a stream of revenue that requires relatively little work on the part of the owner. If you choose the right property management company, you may find that you rarely even have to set foot on the property in order to make money.
Airbnb isn’t quite turn-key, of course, and it does require upkeep and marketing work to make sure a given property is rented out. The amount you can make versus what you’ll spend can, however, be tremendous. If you are willing to keep a property in good shape and be a good host to those that stay with you, you can easily pay your mortgage note and bring in a tidy profit by renting out your property when you’re not using it.
A hot market
Perhaps the best reason to consider being an Airbnb host in Phoenix is that for the moment, the idea of getting an Airbnb room is incredibly trendy. People are moving away from staying in hotels and paying endless fees in exchange for being able to stay in real homes that are closer to the reasons they are traveling for. If you’re looking to get in on a growing market, this is a perfect move.
It’s important to note that while the market is hot, you’re not looking at one that’s in danger of becoming unstable. Arizona is incredibly friendly to the sharing economy and the state legislature has gone as far as making it illegal for cities to ban the business. That means that this type of room-share scheme will be a fixture in the region for years to come. Even after the trendiness dies out, it will still be something that people are looking for in Arizona. It’s better to get in now while the market is in demand than to wait as it becomes saturated later on.
The best time to start transitioning your property to an Airbnb rental is today. If you don’t have a property to rent out, it may also be a good idea to buy a home in the area just for this reason. Whether you are looking to upgrade or you want to get into the game for the first time, you’ll need help. When you’re ready to start your journey towards Airbnb, make sure to get in contact with a trusted Century21 Northwest agent today.