How to build an Airbnb business: What Property Size Makes the Best Short-Term Rental.
Which property size makes the most sense for your short-term rental? Consider that some properties will have better occupancy, lower expenses and attract the ideal guest. Tim discusses what he has found to be the best rental property size for a short-term rental based on the dozens of properties he has acquired and the investment returns he has earned.
- Higher occupancy and returns!
- Lower utility expenses
- Lower your construction/renovation costs
- Lower furnishing costs
- What’s your ideal guest?
For more visit restmethods.com
Welcome to short term rental riches will discuss investing in real estate but with a specific focus on short term rentals quick actionable items to acquire manage and scale your portfolio I’m your host Tim Hubbard.
Welcome back to the short term rental riches podcast we have an excellent episode for you today. Very important one and that is what makes the very best property for short term rental so there’s lots of options out there you have vacation type properties re and resort areas you have urban condos in dense downtown environments you have single family homes and you have everything in between so we’re gonna talk about what I’ve found to be the very best short term rental property in terms of returns and also the work involved.
So I’ve experimented I’ve experimented with properties in different areas end of different sizes and what I’ve found to be the very best is a small unit so even a studio and if you think about it you know hotels traditionally are there’s relatively small 5500 square feet is probably average size hotel room but they’re laid out you know they that’s just a bad the night stands you can actually get small studios and put a nice little compact kitchen in there and have a much better space for someone and also be in an area where they’re gonna have a better experience you know that that unit will be different than the other ones so that I have found has been my most profitable so small little apartments studios and for multiple reasons one of them being just simply the purchase price of these properties if you’re buying a property that has let’s just say for large 2 bedroom units that’s most likely going to cost more than 4 small studios of course there’s lots of variables here but just on a construction cost basis it costs more to build a bigger unit than it does a small unit and so if you’re looking for a smaller property it’s probably gonna be a little cheaper on the onset.
And it now if this is a property that needs renovation it’s gonna cost less for you to renovate it the flooring there’s less flooring now you can put smaller appliances and they’re smaller fridge smaller apartment size so and the utilities are gonna cost less as well because you’re not running a giant central heating and air system with multiple rooms you know a lot of these small studios depending where out the country into depending on the climate you can get by with the small little mini split system or even a window unit that does AC and heat so you’re gonna be more profitable just in the sense that you’re going to have less expenses and regards utilities now when it comes to furnishing same thing is true it’s going to cost less to furnish it because you don’t need as much so you know one bad some lamb smart work way less space to furnish them let’s say a single family home for example now I’ve been focusing with my properties on catering towards a business guest but also tourism and I found that the small units work really well for both especially the business people because a lot of times someone come in and traveling for business they make on Airbnb or homeaway one of the online travel agencies and just automatically put in a filter that says one bedroom thinking you know it’s going to be less expensive to rent a one bedroom then it would be a 2 bedroom and if it’s one person coming to town they don’t need a 2 bedroom so the occupancies I have found are a lot higher because their track teen more gas business people families visiting their kids in college and you know a a couple traveling together exploring.
New areas being tourist so I have found that the occupancies are higher and now another reason that the occupancies maybe hires because a smaller unit you’re typically going to charge a little less for.
But I have units that are bigger you know 23 bedroom and the amount of short term rent that they’re getting compared to the small studios is not that much more and so when you factor in that the difference and nightly rate is not that much greater and the occupancy is higher these smaller 1 bedroom studio apartments have been the biggest bang for the Buck for me also and this is maybe 1 of the best part is that they’re easier to manage just think about it if you have 1 gas coming in the traveling by themselves versus a party of 6 or 8 that staying in a bigger house or bigger apartment there’s less chance of party the wear and tear is likely going to be less on the property so from a management standpoint it’s easier as well and that’s something that you always would wanted to consider that is a big piece of the equation in in in line with management housekeeping housekeeping is going to be easier as well it’s a smaller unit so if especially if you’re paying a housekeeper by the hour it’s not going to take a very long to turn this unit over.
So those are just a few of the reasons I’ve found why I like the smaller units but of course there are lots of properties that work worldwide and for different reasons but from a strictly investing standpoint I’ve got the most bang for my Buck from these small little units they stay the most occupied and I get the highest return so I hope that helps I hope if you’re out there looking for properties.
Maybe consider some that have the smaller studios and I think you’ll find that they operate very well until next.
Want to get on the fast track to financial freedom through short term rentals what all sorts of the properties you.
You want to make sure that you acquired the right properties I want to give you my E-book that will show you how to do just that there is no charge to my gift to you for being one of our subscribers just go to restmethods.com that’s R. E. S. T. methods.com.
