Whenever possible, I try to diversify my income sources. By having several irons in the fire, I’ve found I can more easily navigate the unexpected, ensuring I’m financially stable even when economic conditions shift or unprecedented events occur. Currently, I’m exploring the option of owning my own Airbnb property. Here’s a look at why I’m thinking about making the leap and becoming a host.
Why I Want to Own an Airbnb Property
One of my main motivations for owning and operating an Airbnb property is simple; short-term rentals are popular in my area. I have several friends that dramatically boosted their income by becoming hosts, making it even more appealing.
While operating an Airbnb comes with challenges, others I know who have hopped into this marketplace feel the effort is worthwhile. Most guests are kind and courteous, as well as generally low maintenance. Since that’s the case, I believe that the earning potential caused by the overall popularity of this type of accommodation makes it worth doing.
Additionally, as I mentioned above, I prefer to diversify my income streams. While most of my income comes from freelance writing and I have good long-term, reliable clients; situations like the pandemic show how unpredictable the world is overall. I currently do earn income from other sources aside from writing, but I’m always interested in expansion opportunities. By adding something new to the mix, I can overcome unexpected shortfalls in one area with income from another.
Finally, adding an Airbnb property is something I’m looking at doing with my daughter. Since we’re interested in managing one rental together, it reduces the overall workload. While that means splitting any profits, the earning potential in my area is high enough to make that a non-issue.
My Dream Airbnb Property
Currently, my daughter and I don’t own a property that would work well as an Airbnb. As a result, we’re keeping our eyes open to see if the right opportunity comes along. Overall, we’re prioritizing location since certain parts of our city are more enticing for visitors than others. However, we also want to make sure critical features are part of the equation.
When it comes to design, my daughter and I think a themed Airbnb would be the most fun. Many people want to enjoy the Atlanta nightlife, so integrating design features that align with that idea could help our property stand out from the competition. Plus, it makes the process a bit more fun for us, which is a nice bonus.
My Goals for an Airbnb
Ultimately, I have two main goals for an Airbnb when I take that leap. First, I want it to earn enough money to offset the purchase price and operating costs while providing a bit of profit. That makes the Airbnb financially worthwhile, which is crucial.
Second, I want the Airbnb to be yet another way that I can diversify my income. Again, it never hurts to have several income sources, especially since life can be unpredictable. It also helps my daughter diversify her monetary resources, allowing me to play a role in keeping her on a strong financial path.
Overall, I think those goals make sense, particularly since purchasing a new property would be involved. In the end, choosing to operate an Airbnb is mainly about the financial side of the equation. Sure, it can be fun, but it’s also work. In the end, the numbers need to work out. If they do, I’ll consider my venture into the world of Airbnb hosting a success.
Do you want to own an Airbnb property? Why or why not? Do you already operate an Airbnb property and want to tell others about your experience or offer tips to those thinking about making the leap? Share your thoughts in the comments below.
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Tamila McDonald has worked as a Financial Advisor for the military for past 13 years. She has taught Personal Financial classes on every subject from credit, to life insurance, as well as all other aspects of financial management. Mrs. McDonald is an AFCPE Accredited Financial Counselor and has helped her clients meet their short-term and long-term financial goals.