You’re thinking about joining AirBnB to supplement your rental income and you’re wondering if it’s a good idea. You’ve heard that many people are achieving fantastic results making serious money on the site and you’d like to get in on the action.
Guess what? There’s plenty to think about before joining up to this site and offering short-term rentals. Do you live in the right location? Is your home desirable enough? Or will you have to spend a small fortune to fix up the place?
We’ll do our best to answer the most important questions regarding AirBnB locations. When we’re through, you’ll know the best areas for these rentals and other pertinent information.
What’s the Worst Location for AirBnB Rentals?
For the most part, if you think vacation spots are the best place for these rentals then you’d be partially right because there are definitely lots of people looking for short-term rentals in these areas. But believe it or not, you’d think Miami was the perfect place to become an AirBnB host and you’d be 100% wrong.
Guess what? Miami is considered one of the top five worst places for this type of short-term rental. In fact, it’s actually considered the worst of the top five Why?
To put it simply, the average home value in Miami is incredibly expensive at around $850,000. But the average rental potential for one year’s worth of short-term renting revenue is only about $40,000. Since the average mortgage will cost a Miami homeowner $28,750 per year, you can see that the profit potential is only a little more than $10,000 per year.
Not so great, right? You can do way better with AirBnB in many other places.
But before we tell you about the best places, we might as well finish off letting you know the worst places. Venice, California comes in second place. The average home costs more than $1.5 million and the average mortgage cost is more than $50,000 per year. With a revenue potential of $65,000 per year, the potential profit is only about $15,000 per year or less.
In third place we have Berkeley, California. The average home in Berkeley California costs roughly $1 million. The average mortgage costs $33,000 and the average profit potential is about $45,000, which only leaves the homeowner with about $12,000 worth of profit per year.
In fourth place is Oakland, CA. The average home costs $645,000 and the average mortgage is $21,500 per year. The one year revenue potential is $38,000, which leaves homeowners roughly $16,000 and change.
Last but not least is Houston, TX. The average home costs $212,000 per year and the mortgage costs roughly $7000 per year. One year revenue potential is roughly $28,500, which gives homeowners the ability to make a little more than $20,000 per year which is just okay when compared to the best places.
What’s the Best Places for AirBnB Rentals?
Now if you’re really looking to make serious money, you’ll want to own property in one of the top five best places for these types of short-term rentals. At this moment, the best places include Palm Springs, CA, Lahaina, HI, Davenport, FL, Bend, OR, and Nashville, TN.
In Palm Springs, the average home costs $235,000. The average mortgage is a little more than $11,000 per year. And the revenue potential is nearly $75,000 per year, which leaves homeowners more than $60,000 in gross profits.
Related – do you need an umbrella insurance policy for your rentals?
In Lahaina, HI, the average home costs $620,000 and the average mortgage is $20,500 per year. The revenue potential for one year is $76,500 and the potential gross profit is more than $55,000 per year.
In Davenport, FL, the average home costs $152,000. To pay the mortgage for one year only costs a little more than $5000, but the one year revenue potential is $50,500. Obviously the potential gross profit is more than $45,000 per year.
In Bend, OR, the average home costs $270,000. The one year mortgage payment is roughly $9000 and the revenue potential is more than $51,000. This leaves homeowners with more than $40,000 worth of gross profits.
In Nashville, TN, it’s very similar to Bend Oregon. The average home costs around $270,000 and the mortgage is about $9000 per year and the profit potential is about $50,000 per year, which also leaves homeowners with around $40,000 in gross profits.
As you can see, there’s plenty of money to be made as an AirBnB host. But you have to own property in the right city to benefit the most. So please keep this in mind before signing up to give this a try.