No one ever said no to higher returns on their investments and with Airbnb properties, you have an opportunity to make bigger returns than standard rentals. To get these returns you will need to self-manage the property as some property management firms can take over 25% for managing your rental. So while it is more work than passive investing, for the right individuals it’s perfect for them to invest in Airbnb property. You can even get higher returns if you clean the property yourself, instead of hiring contractors for it.
On top of these higher returns, the growth for these types of vacation lodging is skyrocketing. People are loving the ability to be in a home or condo rather than a hotel. If you provide the right amenities and quality of furnishings, you will get great reviews and people will continue to book your property into the future.
This doesn’t mean you can get lazy and provide a bland Airbnb experience and expect to make money. You have to innovate and be better and different from your competition.
With inflation at a ridiculously high level not seen in decades, it’s important to protect your money. Real estate has always been a hedge against inflation and this is a great place to park your money and get a great return on investment. Not only with inflation, but with wages rising around the nation; real estate prices will continue to rise with them.
You can use a rental property for up to 14 days, or 10% of the total days you rent it to others at a fair rental price with it still being considered a rental investment. This also doesn’t include days that you are working on your property for the majority of the time.
As you build up your rental inventory, you will have multiple places to vacation and still consider their investment properties for tax purposes.
While the details should be left up to the professionals, there are tons of tax breaks when you invest in Airbnb property. Whether it’s your mortgage interest, building depreciation, property taxes, maintenance expenses, and insurance premiums to name a few. Talk to your tax professional about how owning a rental could impact your taxes.