Many renters can see great investment return through rent-purchase agreements if they’re savvy and take notice of the up-and-coming areas that are sure to shoot up in price. Here we talk a lot about your options when it comes to rent-to-own agreements, but what if you’re able to afford to buy a house traditionally? Wouldn’t it be great if there was a way you could get other people to pay your mortgage – both fairly and completely legally?
If you’ve got an entrepreneurial spirit, let’s have a chat about Airbnb.
What is Airbnb?
Incase you’ve been living under a rock, Airbnb is one of the largest vacation rental companies in the world. Over the last several years, the vacation rental industry has been booming with the help of companies such as Airbnb and VRBO that have worked hard to streamline the process and make it easy to not only book vacations, but to become a vacation home rental host. Many people have been making careers from renting out their properties and you can, too!
How Airbnb could pay your mortgage
When you’re thinking about becoming an Airbnb host, you might be wondering if you need to own multiple properties to make this work. The short answer is, MAYBE. A good thing about the vacation rental industry is the desirable element of creativity. People will pay top dollar to stay at a unique property, so this gives you the freedom to really work with what you’ve got to create a one-of-a-kind experience for your guests.
There are several ways people have been able to earn enough money to become nearly or completely financially free by hosting people’s vacations.
It’s important to note financial freedom means you’re able to earn enough passive income to the point where you no longer need to work that 9-5 job to support yourself and your lifestyle. This way of life has become popular among millennials and those who strive to evoke inspiration that you don’t have to conform to the societal norms to be successful.
On theme with being creative, here’s some ideal situations for becoming an Airbnb host:
Your personal home is on land
- Oh, the joys of owning land to be able to spread out! Maybe you have a back acre that’s not being used? You could take this opportunity to build or acquire some sort of small dwelling. This could be as simple as a camper or even a high-quality tent.
You travel a lot
- If you still want a home-base, but are wanting to make a little passive income while you’re off traveling the world, consider renting out your space with Airbnb. Most people who choose this route devise a plan to lock up their personal items while they’re away. More often than not, this is a successful solution. Even though this probably isn’t the most appealing option, it is an option!
You buy a property with the sole intention of renting it out
- If you’re one that prefers complete privacy between your personal home and your rental, this is probably the most ideal option for you. This is also the most common way people go about it. For this option, it’s important to do your research and find areas that will give you the kind of traffic and return you need.
It’s totally possible for one property in a prime location to pay not only for itself, but also your personal property! Obviously, there are many factors that go into this. It’s important to grasp knowledge of the peak travel seasons in your area and market your space accordingly so you can keep vacationers flowing in and out consistently.
Under certain circumstances, it may even be possible to use your rent-to-own home as an Airbnb rental! There will be a few more legal hoops to jump through, but as long as all your ducks are in a row and you get full approval from your seller and lawyers, there should be nothing standing in your way.
How do I get started?
- Determine your rental space
- Get permission from all involved parties, i.e., local and state regulators, HOA/subdivisions, Landlords (if you’re sub-leasing out the space) – it would be kind to get the input of any neighbors as well
- Download the Airbnb or other host app and apply to be a host
- Research the market and set your price
- Hire help (some people wish to hire cleaners and property managers, but this isn’t totally necessary, especially if you want to be hands-on with your property and do the work yourself)
- Advertise, Advertise, Advertise!
Your time is valuable. Figuring out a way to make your home or asset property(s) work for you is an incredible way to discover freedom you didn’t know you could have. Nowadays, it’s easier than ever to share a little slice of the place you call home to help create everlasting memories for others and be on your way to living mortgage free.