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Tag: second home

Things to Know Before Turning Your Property into an Airbnb

Establishing a side hustle is a goal that many people try to strive for, especially for that extra stream of income. Some turn to becoming an Airbnb host, because after all, it can be a very successful opportunity in well-traveled locations. While turning a second property into an Airbnb can be a very lucrative investment, it also comes with its own set of challenges. If you’re interested in becoming an Airbnb host, here are some things you should know before making that investment.

Research Your Location

For starters, you have to determine if the location of your property has a lot of demand. Are you located near tourist hotspots? Is your potential Airbnb near public areas such as restaurants and grocery stores? These are just a couple of questions you should ask yourself in order to determine if hosting in the area is worth it. Keep in mind that the earning potential for your property is largely determined by location and demand for travel.

Another thing to check is to make sure it is legal to host in your area and what requirements you need to meet. In many cases, the city needs to be informed that you plan to rent out your property as an Airbnb and some paperwork will be in order. If applicable, also be sure to check any rules enforced by the homeowner’s association, condo board, or landlord.

Decorating and Marketing

Airbnb hosts actually have to invest a great deal of money into their property to enhance its attractiveness to travelers before gaining profit. Redecorating and cleaning is the first task on the agenda. Your Airbnb should start from a clean slate and include relatively new furnishings and household equipment that are comfortable and high quality. Interior design is extremely important and should appeal to a wide target audience – not just you. Hosts can also consider consulting with professional interior designers for advice.

You will be competing with other hosts in the area, so you’ll need to have good marketing on your listing. It’s worthwhile to invest in a professional photographer for a comprehensive photoshoot. Visuals are everything and your first impression will be through digital photos. Always try to highlight unique aspects including your décor and amenities. In addition, it’s always good to have descriptive listings describing your space as best as you can. Be clear about what you’re offering in order to manage your potential guest’s expectations.

Have Good Amenities and Plentiful Supplies

If you want to host an Airbnb, never skimp on your amenities. Travelers are looking for a comfortable place that meets all of their needs and requirements while they’re on vacation. At the very least, having fast and strong WiFi is an absolute must. Another great thing to have is a Smart TV with integrated services such as Netflix, Hulu, Disney Plus, etc. You can also go the extra mile and pay for a streaming service for your guests to use. If you’re still in the market for a property, owning a place with unique amenities such as a pool or hot tub can be a great bonus on your listing.

You are also responsible for double checking stock and supplies before your guests check-in. They should not have to run to the store just because you don’t have the basic essentials. Here is a quick checklist to go over:

  • Toiletries (shampoo, soap, toilet paper, etc.)
  • Hangers
  • Hair dryers
  • Towels and hand rags
  • Extra blankets, pillows, and linens
  • Kitchen supplies and pantry staples (salt, pepper, oil, etc.)
  • Water and ice trays

Hosts Must Always Be Available

During the course of a traveler’s stay, anything can come up at any time. Perhaps the AC unit isn’t working or they need more bathroom supplies. As a host, you will be their point of contact for anything that they need. You are expected to remain attentive and available for your guests, morning or night. Providing great customer service and fast responses plays a major role in how well your guests enjoy their stay. The difference between a good and bad review can affect your profitability, reputation, and future bookings.

Conclusion

Remember that in order to gain profit from renting out an Airbnb means that a lot of work needs to be put into it. If you’re ready to take on these challenges and are set on investing in a second property, American Mortgage Resource, Inc. can help you find the best loans. Feel free to visit our website to learn more. Consult with our loan experts today!

Pros and Cons of Buying a Second Home

Many people dream of owning a second property, whether it be a beachfront vacation home or a home in the mountains. A second home can also be rented out and used as another source of income. Regardless of the reason, investing in real estate can be a costly and time-consuming endeavor and there are any considerations to take into account. In this month’s blog, we list the pros and cons of buying a second home.

Things to Consider

So why do people bother investing in a second home in the first place? As mentioned, many people look for a second home to use as a vacation house in another state or country. It makes personal vacations easy and is a great spot for family and friends to gather. Others may look into a second property to lease out to renters in the area and have another stream of income.

However, a very important thing to consider is to make sure you can actually afford another home. There are many costs associated with it and you should evaluate your financial situation beforehand, such as any debts, retirement funds, college savings for your children, and so on. Once you’re sure you have the financial means and budget to purchase a second home, it’s time to weigh the pros and cons.

Pros

There are many advantages when it comes to owning a second home. Here are some benefits:

  • You can use it however and whenever you like.
  • If you’re using it as a vacation home, you can travel light and don’t have to worry about booking a hotel.
  • You can lend it to friends and family.
  • You can rent it out for extra income and use it to cover ownership costs.
  • It can give you tax benefits such as deductions for any rental-related expenses.
  • It will be an asset that can have positive capital appreciation, or an increase in its value.
  • You can retire there.

Cons

Of course there are some downsides and considerations that you have to take into account. Buying a second home is a very important decision that you should think through, especially when it comes to costs and the time you need to put into it. Here are some cons:

  • Second homes are expensive and are very costly. Other than mortgage payments there will be property taxes, insurance premiums, utilities, and other maintenance fees including repairs and renovations.
  • The distance may be a problem and can be a hassle to travel there if you need to handle maintenance or any issues.
  • Unless you hire a property manager, you will be responsible for maintaining the home. This includes things like yard work, house cleaning, scheduling appointments with contractors and maintenance workers, etc.
  • Depending on the housing market, it can be difficult to sell it later on.
  • You may also have difficulty finding renters and can lose out on rental income.
  • Some people may experience staleness with their vacation home location.

Learn More

Investing in another property should be considered carefully with the pros and cons in mind. If you’re ready to make the decision to buy second home, you’ll have to decide how you will finance it. Here at American Mortgage Resource, Inc., our professionals can help you decide on the best loan options and what to do moving forward. We offer mortgage consultation to homeowners and home buyers in Boston, MA and the surrounding areas. Learn more by visiting our website or make an appointment with an expert today.