Airbnb and short term rentals have become incredibly popular over the last 12 years since the company was found in 2008, mainly due to the many benefits of becoming an Airbnb host, and everyone wants to get in on the action – which I wholeheartedly support as a decade long Superhost!
So if you’re looking for different ways to get started with Airbnb or invest, then you’re in luck. There are a few different options available to you, each with its own unique set of pros and cons. In this blog post, we’ll explore some of the different ways you can invest in Airbnb’s, including buying shares in the company, investing in real estate properties to list on the platform, and even becoming an Airbnb host yourself.
Buying shares in the company
One way to invest in Airbnb is to simply buy shares in the company. This is the most straightforward option, and it allows you to become a shareholder in the company. As a shareholder, you’ll be entitled to a portion of the company’s profits and will have the ability to vote on important decisions affecting the company. (This last point is only if you hold a significant amount of shares).
If you’re interested in buying shares in Airbnb, you’ll need to do so through a brokerage account. There are a variety of online brokerage platforms available, so you’ll need to research and compare your options to find the one that best fits your needs. I personally use EasyEquities. Once you’ve opened an account, you can buy shares in Airbnb just like you would any other publicly traded company.
Becoming an Airbnb host
You can also become an Airbnb host yourself. This can be a great way to generate some extra income, and it allows you to be more involved in the Airbnb community. As a host, you’ll be responsible for managing your listing and providing a great experience for your guests, but Airbnb provides a number of tools and resources to help you (and your guest) along the way.
To become an Airbnb host, you’ll need to first create a listing for your property. This involves providing information about the property, including its location, amenities, and any rules or restrictions. You’ll also need to set a price for your listing and decide whether to offer the property on a short-term or long-term basis.
Once your listing is live, you’ll be able to start accepting reservations from guests. Airbnb makes it easy to communicate with guests and manage your calendar, so you can keep track of who’s staying in your property and when. As a host, you’ll also be responsible for ensuring that your property is clean and well-maintained, as well as providing any necessary amenities or services for your guests.
Investing in real estate that are geared for short term rentals
In addition to buying shares and becoming an Airbnb host, another way to invest in Airbnb’s is to invest in real estate properties and list them on the platform and outsource everything else – either through a management company or through co-hosts, along with other fancy stuff, like automations and virtual assistants. This can be a great way to generate passive income, as you’ll be able to earn more money (on average) from your property than a long term rental with much less of the hassle that comes with running an actual Airbnb.
To invest in real estate for Airbnb, location and other factors, along with your budget and financing capabilities are the major drivers in this decision. In general, properties in popular tourist destinations are more likely to generate bookings, although these properties are more expensive than their non tourist destination counterparts. Beachfront and inner city properties tend to be the most expensive (and I prefer to rent here rather than own for my own personal Airbnb properties!)
Another key consideration is how to finance the purchase. There are a few different options available, including taking out a mortgage or using a combination of cash and financing. Whichever route you choose, make sure to do your due diligence and carefully consider the costs and potential return on your investment.
One thing to keep in mind when investing in Airbnb is the potential risks involved. While the company has seen significant growth in recent years, there is no guarantee that this trend will continue. In addition, the short-term rental market is subject to a number of regulatory and legal challenges, which could impact Airbnb your Airbnb in the future – so make sure to stay abreast of these.
Conclusion about the different ways to get started with Airbnb
There you have it – three ways to get involved in the Airbnb game and get a slice of the pie. I personally am bullish on Airbnb arbitrage, which means renting a property from an owner and then subleasing it on Airbnb (with their full permission of course!). There will be more articles on my site that will break down the above topics and the arbitrage angle.
Once you have an Airbnb ready, you’ll want to check out my post about maximising your earnings as an Airbnb host.
P.S. Some of the links in my article are referral links and I may receive a small commission if you decide to use one of these services or products. Rest assured I have personally used them and can highly recommend them.