Considerations to Think About Before Investing in a Vacation Rental Property

The idea of generating multiple streams of income has always been at the top of mind for many people. Driving for rideshare companies, picking up a second job, …

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The idea of generating multiple streams of income has always been at the top of mind for many people. Driving for rideshare companies, picking up a second job, and freelance work have all been pretty lucrative ways to generate additional income if done right. But depending on your schedule, it can prove to be exhausting. So how are people finding ways to generate more income without over-exerting themselves?

Passive income, and more so in the area of vacation rental investments.

You see all the time how people are listing their homes on sites like Airbnb and making money from it. But the question is how can you do it? From the commercials and how your friends describe it, it sounds almost too easy, right? So should you invest or not?

Well, investing can be a lucrative investment, but before you dive in head-first and fully invest, take these important factors into consideration first, especially if you’re a beginner.


When choosing a vacation rental property, you want to take the time out to choose your location very carefully. Location is very important because you want to make sure you’re investing in a property that’s in close proximity to the things that travelers enjoy like restaurants, attractions, and shopping.

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The second reason location is important is for safety. Before investing in a rental property, you’re going to do a bit of research to find a location that’s safe that you think guests will enjoy. According to, 2.5 million burglaries happen every year, and the last thing you want is to invest in a property that’s “sketchy” or looks suspicious.

When guests hop onto the Airbnb site, they’ll look at the pictures you post and look at the outdoor pictures to get a good idea of what the area is like, or they’ll look at Google Maps to see the neighborhood. When users look at the area, and they feel it’s unsafe, they won’t book with you.

Maintenance Costs

All homes require maintenance, and in running an Airbnb, your property will require even more maintenance and upkeep. Because you won’t have the same guests staying in your property, you’re running the risk for more property damage.

You’ll, of course, need to invest in property insurance, but in addition to that, you’ll need to assess your property after every guest stay to not only get the property clean for the next guest stay but you’ll also want to assess the property to check for any damages. The thing to consider here is whether or not you’ll be willing to invest the time and money necessary to maintain a vacation rental property.

How Much Money You Can Make

When making an investment of any type, the main concern is how much money you can make from your investment. When investing in a vacation rental property on Airbnb, the question is “How much is the average host is making?”

There are quite a few factors that play a pivotal role as to how much money you can make as an Airbnb host.

  • The location of your property
  • Nearby attractions, restaurants, and shopping
  • Number of bedrooms
  • Cleanliness and decor
  • Convenience
  • Amenities and features
  • Pictures

Based on these considerations, your vacation property can generate a considerable amount of income, but it won’t happen overnight, nor will it happen without some effort on your part. Everything from furniture selection to the selection of the actual vacation rental property, the amount of money you can make is solely dependent on the choices you make as a host.

There are more considerations to think about before investing in a vacation rental property but the ones listed above are some of the top considerations to think about that can generate the passive income you desire.


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