Jasper Ribbers: Maximizing Your Real Estate Investments with Airbnb
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Jasper Ribbers is a full-time traveler and Airbnb expert. The former stock trader found corporate life unfulfilling, so he rented out his home in Amsterdam through Airbnb, and the rest is history. Five years and 60 countries later, Jasper earns great money with Airbnb and is now focusing his efforts on teaching others how they can turn their homes into profit using the site.
During our chat today we cover:
- How Airbnb works
- Investing in an Airbnb property
- How to master Airbnb and maximize profits
Making Money with Airbnb
Your earning potential on Airbnb is dependent on the location of your property. In a good location, you can expect to earn anywhere from 10% to 15% gross ROI.
Example: Jasper’s Home in Amsterdam
Jasper’s home in Amsterdam grossed €1600/month with long term rentals. When he switched to Airbnb, his gross income tripled. Overall, he now nets 12%/year with regards to the value of his property, which is much higher than the 5% to 8% return of typical real estate investments.
Investing in an Airbnb Property
With interest rates at all time lows, a growing number of investors and entrepreneurs are turning to Airbnb property investments as a viable form of income. If this is something you’re interested in, consider the following steps:
Step 1:Start looking at homes and condos in your desired location. Compare these properties to existing listing on Airbnb, or employe the services of Airdna or Everbooked. Both companies provide detailed information on booking rates, occupancy rates, etc.
Step 2:Looking at property prices and use the data gathered in Step 1 to calculate ROI.
Step 3:Before you purchase a property, make sure there are no restrictions in place on subleases and/or short term lets. These types of restrictions are sometimes imposed by the HOA or local authorities.
Step 4:After investing in a property, prepare it for Airbnb and make sure your Airbnb listing is attractive to prospective guests.
Mastering Airbnb
The key to mastering Airbnb is to understand that as a property owner with a listing on the website, you are entering the hospitality industry. Stay at an Airbnb property yourself to get a feel for what it’s like to be a guest.
You need to build a reputation when you first start out. For the first few months you shouldn’t be worried about money - you should be more concerned about making as many listings as possible, so price your property accordingly.
For owners of multiple properties who are interested in hiring a management company to handle their Airbnb listings, Google “Airbnb short stay management + cityname”.
Preparing Your Home for Airbnb
- Invest in a cleaner and make sure your home in 100% spotless.
- Walk around your place and pretend you just arrived after a long flight. Ask yourself: “What do you need?”
- Stock your home with all the essentials for travelers (e.g. shampoo, towels, soap)
- Make sure you take into account the needs of guests from around the world as well as different genders. For instance, female guests will expect a hairdryer. Guests from the UK will expect a kettle for making tea.
Creating a Good Airbnb Listing
- Update your calendar daily
- Post high quality pictures
- Include the Instant Book feature on your listing
Protecting Your Property
Some property owners have concerns about guests causing damage to their property. This happens very rarely. You should have a fairly good idea about who is requesting to stay at your property based on their Airbnb profile. After engaging with them and viewing any linked social media profiles, if you do not feel they will respect your property, you can turn them down as guests.
Make sure to check out…
The Optimal Price For Your Airbnb Listing
