INVESTING than you ’ d make from a traditional rental by about R215,000 .
Bear in mind that these numbers are rough estimations to show that shortterm rentals can offer higher returns . They don ’ t represent actual housing market figures . Amounts could be higher if the property ’ s fair market value as a vacation rental appreciates . They could also be lower depending on the property expenses and taxes .
2 . More diverse portfolio of renters With traditional long-term rental properties , you lease your property to a single tenant for an extended period . This is synonymous with putting all your eggs in one basket . While it can be beneficial for you when the tenant is financially stable and treats your property well , it can also be detrimental should they miss out on a payment or cause too much damage .
Airbnb rentals give you the opportunity to collect rent from different tenants regularly . Each guest is a small percentage of your total rental income . If any of them cancels their booking or fails to pay , it might not have that much of an effect . In other words , renting out to multiple guests lowers the risk .
3 . Potential Passive Income Most investors are usually looking for an investment that won ’ t require their presence or energy to generate an income . While passive income investments still require some level of work , the win for you is that you get a good income with little to no effort .
Once you ’ ve purchased a rental property and listed it on Airbnb , you can sit back and earn money every time your property gets a booking . You don ’ t have to be present to entertain your guests or keep them company . Simply list the property and always ensure it ’ s in top condition .
Keep in mind that an Airbnb investment property generally requires more maintenance and management . Airbnb management tasks include responding to queries on Airbnb , managing bookings , handling guests on check-in , ensuring guests enjoy their stay , and cleaning the property after each check-out . These tasks can be a bit overwhelming .
The best thing about these properties is that you can choose a vacation renatl management platform to help you streamline the process and take care of these tasks .
SA Real Estate Investor Magazine MARCH / APRIL 2023 53