PROPERTY MANAGEMENT
Airbnb investments are a perfect way to generate passive income . They are suitable for you whether you ’ re getting started in real estate investing or you ’ ve just heard about them and desire to explore their potential .
Airbnb properties are a great option for investors who want to invest in rental properties but wish to forgo the responsibilities of being a traditional landlord .
With inflation and a rising cost of living , it ’ s no surprise that earning extra money and saving more in 2023 are near the top of many investors New Year ’ s resolution lists . If you ’ re determined to earn more in 2023 and stick with it , becoming a Host on Airbnb might be just your answer . New Hosts last year collectively earned over R115 million in income between January and September 2022 in South Africa alone , with the average new Host earning over R8,350 over the same period .
Hosts are joining the ongoing travel resurgence after Covid restrictions and new economic opportunities for communities , as well as new Hosts looking to earn extra income . New insights from Airbnb show that about
15 percent of South African Hosts that became active last January went on to become Superhosts .
What ’ s more is that new homes globally on Airbnb are getting booked almost immediately with half of listings activated and booked in Q3 2022 receiving their first reservation within three days .
1 . Higher ROI ’ s
Owning an Airbnb rental property with a good occupancy rate consistently throughout the year can generate higher profits than renting out the same property as a traditional rental . Remember , you ’ re charging the rental rates on a nightly basis instead of the traditional monthly basis .
Let ’ s assume you purchase an apartment and get a long-term tenant who pays R12,000 per month for it . If you lease the property to the tenant for a year , your income within a 12-month period will be R240,000 .
Now if you list the same property on Airbnb as a short-term rental for R2,500 per night . Of course , you won ’ t host guests every night of the year . Assuming you enjoy a 50 % occupancy rate , which is 182 days of the year , you ’ ll make R455,00 . This is more
52 MARCH / APRIL 2023 SA Real Estate Investor Magazine