Where you’d only have to rent your home for four days to pay your mortgage
Airbnb may be the key to your making bank.
Though pads in pricey cities like New York and San Francisco can command astronomical nightly rates, it’s humble Virginia Beach, VA where Airbnb hosts, on average, can make the most profit, according to data released this week from Homes.com.
The analysis, which looked at the difference between the average daily mortgage cost and the average daily Airbnb rate, found that hosts there can rake in profit of $183.33 per night. Compare that to the national average — a profit of $99 among the 75 cities studied — and you’ll see this beach town can help your home bring in the big bucks.
Virginia Beach tops the profit list for two big reasons, explains Grant Simmons, a marketing vice president for Homes.com: First, there is a decent demand for Airbnbs in the area thanks in part to military visitors (Virginia Beach has a large military presence), as well as beachgoers who flock in for spring break and summer. And second, home prices hover around $250,000, so mortgages aren’t sky high.
What’s more, in some spots renting your home on Airbnb for as little as 4-6 days per month might pay your entire monthly mortgage. That’s true in Virginia Beach (5.13 days), as well as a number of Ohio cities, including Akron (4.21), Cleveland (4.54) and Cincinnati (5.39). Simmons says that this may be because home prices in these spots are below average, and there is a decent amount of demand in those areas thanks to industry and colleges.
Meanwhile, in pricey spots like San Jose and San Francisco, you’d have to rent your home out on Airbnb for nearly an entire month to pay the mortgage. Simmons says that’s largely because home prices are sky high in the Bay Area.
Tips for making bank on your Airbnb — no matter where you live:
Get multiple high ratings from guests. “High ratings are absolutely essential if you plan to list your space on with a higher-than-average price tag for your area,” says Jeff Proctor of personal finance site DollarSprout.com. In addition to making sure your home is very clean, he recommends keeping it “stocked with toilet paper, paper towels, extra toiletries, etc.” to ensure high ratings from guests.
Use high quality photos and engaging descriptions. “The intent here is not to mislead anyone, but simply to show your space in the best possible light for prospective tenants. A listing with poor quality photos is never going to catch the eye of people willing to pay top dollar for a space,” says Proctor.
He adds that you should “be as descriptive as possible in your listing. Instead of ‘one bedroom apartment,’ a better option may be ‘spacious one-bedroom apartment centered in the heart of Blacksburg.’ Set your listing up for success with an appealing, detailed title.”
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