How to Find the Right Realtor For a Profitable Airbnb Investment
While most realtors can talk the talk, very few walk the walk. All realtors are well aware that short term rental properties and Airbnb properties can make good money, but very few have hands on experience operating one. Finding a profitable Airbnb property seems like an easy task on paper, but in reality the numbers can be deceiving. Finding a realtor that actually has experience specific to short term rentals will significantly improve your odds of finding the right property.
1. Find a realtor that is also an Airbnb host
While most realtors can talk the talk, very few walk the walk. All realtors are well aware that short term rental properties and Airbnb properties can make good money, but very few have hands on experience operating one. Finding a profitable short term rental (STR) property seems like an easy task on paper, but in reality the numbers can be deceiving. If you are looking for a profitable investment, we always recommend to align yourself with a realtor that owns and operates an Airbnb himself/herself. They can not only provide insight into the day to day requirements, but can also provide recommendations on how to improve profitability and what features to look for. Short term rental properties are a different monster than typical rental properties. Find a realtor that has personal experience and truly understands the differences.
2. Make sure your realtor has a deep understanding for the local STR rules and regulations
Anyone can look up local STR rules and regulations, but the rules are constantly changing. In some areas there are little to no regulations which is great for the hopeful investor. However, some areas are far more restrictive and sometimes prohibit Airbnb’s altogether. This would obviously be an unfortunate discovery after you’ve already closed on your new home, so understanding any possible restrictions in advance is critical. Having a realtor who also fully understands those dynamics is key. Make sure that your realtor isn’t just saying what you want to hear, but actually understands the local regulations.
Our recommendation is to first establish a basic understanding of the regulations for yourself. You can do this by quickly looking up the regulations yourself and asking fairly basic questions. The goal is not to trip your realtor up or quiz them, but just to ensure that they are not full of shit. If you read about zoning restrictions in the area, simply ask your realtor to give you a brief overview of how that impacts the local STR’s. You’ll get a pretty good sense on whether or not that realtor actually knows his stuff or if he/she is just feeding you nonsense.
3. Request occupancy and profitability estimates from comparable Airbnb's
Regardless of the industry, all investors are looking to maximize their ROI / profitability. However, not all realtors really understand how to find profitable properties, especially when it comes to Airbnb’s. All realtors are trained on how to pull comparable home sales, but very few are trained on how to produce comparable short term rental estimates. Understanding both is the key to securing a property that will not only maximize your profitability, but minimize your risk. Make sure you find a realtor that fully understands both and can make recommendations accordingly.
Here at Simplify STR, we do the legwork for you. We have a team of licensed realtors ready to help you find and set up a profitable Airbnb investment property. We service the entire US. Our team of realtors are not only fully licensed, but all manage their own personal portfolio of profitable Airbnb properties. Our STR realtors are not only successful hosts themselves, but love to help others achieve success in the industry as well. They can not only help you find and close on your new investment, but can provide recommendations on where to look and services to consider to further improve profitability in the future. And if we don’t have a qualified realtor in your area, we will find one for you – all at no cost to you. For more information on this service, please reach out to us here.