To start this file on Airbnb rental, we suggest you start with the first step that investors have to take: the search for a property for Airbnb rental. It should be noted that the majority of seasonal rental property owners already had a property available before resorting to seasonal rental. The popularization of platforms like Airbnb led them to take the plunge naturally, rental between individuals having become accessible to all. We place ourselves here in the shoes of future investors, currently having no property to rent and seeking to make a first investment in seasonal rental.
Know the properties that rent best on Airbnb
If there is no miracle recipe for the selection of a property, we can only note that some properties are more effective than others for Airbnb rental. The latter benefits from its own rules and specificities. Knowing the properties that are best rented on Airbnb is a first step to better define your investment project while giving it credibility.
Target Airbnb High Yield Cities:
Targeting high-yield cities allows you to find much better profitability in seasonal rentals compared to long-term rentals. By taking advantage of the seasonality of activities, tourist influxes and the reputation of cities, you maximize your chances of making a profitable rental investment. This profitability takes into account the main indicators of Airbnb rentals: the occupancy rate, the average income per night which together determine the average annual income. Below are the cities in France offering advantageous returns compared to long-term rental:
- Montpellier (x2)
- Maroon (x2)
- Bayonne (x2)
- Lyons (x2)
- Marseilles (x2)
- Toulouse (x1,5)
- Anglet (x2)
- Biarritz (x1,5)
- Paris (x2)
- Strasbourg (x1,5)
- Nice (x1,5)
- Chamonix (x1,2)
- Canes (x1,3)
The location of the property in the city and its environment:
The analysis does not stop at the city and its profitability. You must also consider the location of the property in its sector and its ability to position tenants as close as possible to what brings them to your rental. For work, holidays or any other reason, the location of the property will be decisive in defining its ability to attract tenants. In addition to favoring the possibility of an apartment with a breathtaking view, a location in the city center will often be preferred. This is because your Airbnb accommodation will be placed near:
- shopping
– transport (bus, metro, train stations, etc.)
– halls, palaces, congresses…
- monuments
- activities
This geographical situation is of course to be studied closely and according to the city and the geographical sector chosen. It is important to carefully consider this point which is however often underestimated. Only a few hundred meters sometimes separate a dwelling that is still occupied from an empty one. A specific neighborhood or street can sometimes lead to very big differences in terms of success on Airbnb.
Lionel, director of our Concierge Reunion
The rental period of your future seasonal rental:
The rental period is a very important criterion to better define the interest of a geographical sector. Indeed, some cities receive a steady flow of tourists throughout the year while others are very busy during good times and deserted at other times. Incidentally, this criterion is totally independent of the estimated yield of your property since the seasonality of a destination also implies an increase in prices. A city like Paris will be able to attract visitors permanently with a relatively limited price fluctuation. A city like Cannes, for its part, will be particularly busy during the period of congresses, festivals and summer and much less in winter. However, with rental prices fluctuating significantly upwards during the summer, Cannes remains a prime location for an Airbnb investment.
The rental period must therefore extend over several months of the year and allow a significant increase in prices per night if this is limited. Once again, everything depends on the specificities of the geographical sector chosen and in-depth research on the sector and its specificities must be carried out carefully.
Should you invest in a property close to your main residence?
Certainly one of the questions asked most by owners making their first rental investment. The proximity of an Airbnb rental to the main residence offers many advantages. first of all, in the event of renovation work to be carried out and for the development, proximity will be a major asset allowing you to manage the project well and make your daily life easier. Geographical proximity is also reassuring for many owners: possibility of regularly coming on site to check the condition of the accommodation, carry out maintenance and minor repairs, closer monitoring and ease of rental… The advantages are numerous.
Be careful, however, that they do not weigh disproportionately in the balance: proximity should not make you forget the points discussed above. In terms of rental investment, the ability of the property to generate a good return by attracting visitors with attractive prices per night prevails over your personal comfort. This point is therefore to be approached with pragmatism: it is better to concede a longer journey to get to your rental and gain in profitability than to favor proximity and invest in accommodation that is not very or not profitable.
