Owning an Airbnb in Another State: How to Invest and Manage from a Distance (2024)

FAQs

Owning an Airbnb in Another State: How to Invest and Manage from a Distance? ›

Managing Airbnb properties out of state can be difficult though not impossible. It requires you to design your short-term rental business to be more proactive and collaborative. With that said, hiring a professional property manager is ideal, saves time, and grows your business.

By becoming an Airbnb host, you can diversify your income without needing to be a real estate expert. Airbnb's rise in popularity has made this a potentially solid approach to buying an investment property, but that doesn't mean it will work for everyone.

Managing Airbnb properties out of state can be difficult though not impossible. It requires you to design your short-term rental business to be more proactive and collaborative. With that said, hiring a professional property manager is ideal, saves time, and grows your business.

Depending on the type of vacation rental you are running, you could be looking at spending 2-3 hours a day managing your property and between 5-8 hours on days where you have a change-over of guests. What takes so long, you ask? Here are some things that are likely to eat away the hours in your day…

For Airbnb hosts looking to make a living on the hospitality platform, full apartment rentals are the way to go. Rates for full apartments are significantly higher than those for single rooms and income after expenses ranged from $15,000 to $31,000 in our analysis.

I make over $600,000 in revenue each month from Airbnb. Here's how I used rental arbitrage to become a multimillionaire. Chris Choi has over 100 listings on Airbnb and is projected to make $10 million in revenue by the end of 2022.

What is a good ROI for Airbnb? ›

What is a good Airbnb return on investment depends on a number of factors, including the market, the property type and size, the management strategy, and general US housing market trends. Generally speaking, when we look at Airbnb cap rate, a range of 8%-12% is considered optimal for rentals.

Investing in Airbnb can be an excellent source of passive investment income and is a great option for a beginner investor. But please keep in mind that not all real estate investment properties are Airbnb investments. There is a big difference between the two.

Airbnb lets you generate passive income from your home or spare room. Being an Airbnb host involves listing your property on its platform, which handles bookings and communications with guests. Hosts are paid out based on guest stays.

Difficult guests

Having unruly guests can be a major headache for an Airbnb host and cause a lot of stress. While you can place screening measures in place, there's always a possibility that you end up renting your property to guests who cause problems or damage your investment property.

Remote Airbnb management doesn't have to be difficult. Many Airbnb hosts already manage their Airbnbs remotely with great returns. You can, too. The key is implementing processes that both exceed guest expectations and make it easy for you to manage Airbnbs from afar.

Becoming a host on Airbnb is a great way to achieve passive income while being able to manage your own personal life and finances. Airbnb hosts have to go through a four-step process before they can actually start listing their properties. The sign-up process includes: Inputting your personal and property information.

It's vital that you display an accurate location on your Airbnb listing.