Over the past several years , most shortterm and longterm rental property owners created the bulk of their wealth from the annual equity gains related to buying and holding their properties as values increased anywhere between 10 % to 40 % per year . In California alone back in 2021 , it was reported that the average home statewide increased in value $ 11,000 per month or $ 132,000 for the entire year . If so , I doubt that many Airbnb or VRBO hosts collected more than $ 132,000 in gross or net rent profits .
Did you know that San Diego , California was ranked as the # 1 for having the highest gross revenues of any Airbnb region in the world in 2021 ? Please see the complete Top 10 list of the highest grossing rentals in the world later in this article .
Let ’ s look next at just some of the shortterm rental listing companies which assist vacation rental property owners with the leasing of their properties :
● Airbnb
● VRBO ( Vacation Rental By Owner )
● Booking . com
● TripAdvisor
● Expedia
● HomeToGo
● Tripping
● Homestay . com
● Atraveo
● OneFineStay
The prominent travel booking company named Expedia purchased VRBO back in December 2015 . As a result , Expedia continues to be one of the most dominant shortterm rental companies in the world .
As per published Airbnb data , here are the Top 10 states for average annual host or property owners earnings for 2021 :
1 . Hawaii : $ 73,247 2 . Tennessee : $ 67,510 3 . Arizona : $ 60,448 4 . Colorado : $ 58,108 5 . California : $ 54,461 6 . Florida : $ 53,209 7 . South Carolina : $ 49,641 8 . Utah : $ 48,568 9 . Oregon : $ 42,964 10 . Alabama : $ 41,937
If a rental property owner confides in you that he or she collected $ 50,000 + in gross income from Airbnb last year , this number may only represent a small percentage of their overall total revenue collected from both shortterm and longterm tenants ( 30 days +) because they may have multiple income stream options by way of VRBO , Booking . com , or other companies that help supply them with consistent tenants . This is especially true when the property is located in a populous metropolitan region or a prime vacation getaway area like those found in San Diego , Santa Barbara , or Miami .
No Income Verification Loans for Rentals
Most real estate investors usually need thirdparty mortgage financing to purchase one or more rental properties even if they are very wealthy themselves . Many years ago , it was quite challenging to qualify for a rental property because you were asked to provide two years ’ worth of tax returns , a detailed profitandloss statement , and the mortgage underwriters would only give you credit for 75 % of your gross monthly rents when attempting to qualify or deny your loan request . This 75 % number was due to the fact that lenders assumed that you had property management fees , vacancy rates above 0 % throughout the year , and operating expenses for repairs .
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