Thanks to the Airbnb platform, investment in real estate has boomed in recent years. In Paris, there are currently more than 30 furnished tourist accommodation available on a full-time basis. But is that enough to say that the Airbnb system is more profitable than traditional rental. Our analysis.
Some figures on Airbnb
The Airbnb platform currently lists more than 3 million homes in more than 65 cities in around 000 countries. France holds the second market for this platform with some 190 housing units in France, of which more than 300 are located in Paris.
According to Le Figaro, an Airbnb apartment is almost 3 times more profitable for seasonal rentals than for long-term rentals in Paris. Since the advent of the Airbnb system, nearly 20 apartments in the city have switched to the platform. In the first four districts of the capital, only 000% of apartments rented on Airbnb are rented seasonally to vacationers.
Management of Airbnb apartments
In general, renting via Airbnb is profitable but it requires great availability and investment on the part of the owner. Indeed, renting your apartment via the platform involves the posting of a personalized advertisement on the site, the management of the household, the handing over of the keys, the management of reservations, disputes, etc. Many investors also choose to call on outside companies to take care of the management of the apartment. Obviously, this process incurs additional costs.
Charges generated by a rental on Airbnb
Renting an apartment through Airbnb generates charges that are completely different from a traditional rental. A rental via the platform concerns in particular a short-term rental where a stay never exceeds 3 to 4 days. The costs incurred by check-in and check-out can thus quickly become high, especially when one chooses to entrust the complex details to a company or a concierge agency. We are talking about a commission ranging from 15 to 20% of the rent.
On the other hand, an apartment rented through Airbnb needs the approval of the site's customers to start becoming profitable. It is therefore essential to offer extra services to attract visitors and increase the profitability of your apartment on Airbnb. This could range from a simple coffee / tea dispenser, to an internet connection, additional TV channels or even tour guides. But with that, it will also be necessary to count a bill of water and electricity which can vary considerably according to the tenants. There is also a tourist tax, claimed in certain tourist towns.
Greater profitability in tourist areas
Airbnb is now a very popular tourist trend in many countries around the world. This system can indeed generate very interesting income, especially in capital cities. Le Journal du Net confirms in a recent study that, in some districts of Paris, you just need to rent your apartment for 10 days to see the profitability of an Airbnb rental compared to a traditional monthly rental.
Among the districts where Airbnb rentals are the most profitable in Paris, we find Notre-Dame, Elysées / Madeleine, Odéon, and Triangle d'Or.
Airbnb or classic rental?
The biggest advantage of an Airbnb rental concerns the possibility of setting higher rates per night than for a traditional rental. However, it is important to properly calculate the potential income before offering a profitable nightly rate. The occupancy rate of an Airbnb rental apartment also depends a lot on its location.
Besides a classic rental which ensures permanent occupation, therefore a stable monthly income and less management costs, a seasonal rental is only really profitable in a recognized tourist location.
