With traditional long-term rental properties, you lease your property to a single tenant for an extended period. They could also be lower depending on the property expenses and taxes. The amounts could be higher if the property’s fair market value as a vacation rental appreciates. They don’t represent the actual housing market figures.

Keep in mind that these numbers are just rough estimations to show that short-term rentals can offer higher returns. This is more than you’d make from a traditional rental by about $10,000.

Assuming you enjoy a 50% occupancy rate, which is 182 days of the year, you’ll make $27,300. Of course, you won’t host guests every night of the year. Now, let’s say you list the same property on Airbnb as a short-term rental for $150 per night. If you lease the property to the tenant for a year, your income within a 12-month period will be $18,000. Picture this: Let’s assume you purchase an apartment and get a long-term tenant who pays $1,500 per month for it. Remember, you’re charging the rental rates on a nightly basis instead of the traditional monthly basis. Owning an Airbnb rental property with a good occupancy rate consistently throughout the year can generate higher profits than renting out the same property as a traditional rental. That said, here are some benefits investors enjoy when running an Airbnb property: Higher Potential Return on Investment They are suitable for you whether you’re getting started in real estate investing or you’ve just heard about them and desire to explore their potential.Īirbnb properties are a great option for investors who want to invest in rental properties but wish to forgo the responsibilities of being a traditional landlord. Airbnb investments are a perfect way to generate passive income.

Airbnb investing