These days, there are many different ways you can earn an extra income. In fact, many people are looking at ways to make passive income, which requires them not to work much or at all.
Some popular ways to make passive income are to write a book, start a YouTube channel, or some type of investment. But if you’re not a writer or are too camera shy, then maybe the first two options terrify you.
Maybe the third option does too, but it’s not as scary as it seems. There are many different ways to invest your money.
A. Vacation or Short-Term Rentals
Have you ever traveled and instead of staying in a hotel, you used an online marketplace like Airbnb? Or maybe you’ve listed your place on Airbnb while you were on vacation. Either way, this service is a type of short-term rental and it’s a legitimate way you can make money.
Now you can definitely make a good bit by occasionally renting your space out to travelers visiting your area, but you can make even more by investing in vacation rentals.
In fact, if you have already made a good bit of money from lending your space to travelers, you can use that money to invest in a rental property.
B. 5 Tips for Seeing the Greatest Return on Your Investment
Airbnb investment properties help you generate passive income, but like most business ventures, you’ll see the most return on your investment when you do your research and put in the work.
1. Pick a location that is likely to attract tourists.
You don’t have to purchase a vacation rental in your town. In fact, it’d probably be in your best interest to purchase one in a place that has many visitors year-round. That way, you’re more likely to book travelers.
This doesn’t mean that you shouldn’t purchase a vacation rental near you, because people love to travel to unique places. Also, you can build a good portfolio by having vacation rentals in different places.
2. Make your rental property look desirable, on the inside and outside.
When listing your property for rent on sites like Airbnb, presentation is everything. If a home doesn’t look welcoming or inviting, then travelers probably won’t want to stay there.
A clean, simplistic look is a safe decorating choice, but it doesn’t have to be boring. You can add a touch of your personality when decorating, just don’t go overboard. Also, pay attention to every detail of the rental property, from the front porch, throughout the house, and to the back yard.
3. Provide the basic amenities, but also add technological devices, if possible.
The bare minimum required to host your place on Airbnb is to have a comfortable sleeping space and a bathroom. Being that you’ve just bought your rental property, it’s likely that it has those already, and more.
Ratings have shown that smart homes or spaces with smart devices, such as Alexa, see higher rental rates. These smart devices provide convenience and safety, two great selling points in your listing.
4. Have open communication and be responsive.
If your renters can’t ever get a hold of you, it’s likely that they’ll leave bad reviews; which, in turn, can affect the likelihood of you getting future renters. Even if you do receive a bad review, respond to it in a helpful, but professional, way.
5. Invest in a property manager or management company.
If your vacation rental is an addition to your current income, you’re likely very busy. It’s imperative that you keep up with it, but that can be hard to do when you have other obligations, or even if your vacation rental is in a completely different town.
You may even expand and purchase additional vacation rentals, so the extra help will alleviate a lot of stress.
Investing in a vacation rental is a great way to earn passive income and build up a real estate portfolio. A side hustle as simple as a short-term rental property has the potential to turn into your main stream of income.