BUYING AN INVESTMENT PROPERTY FOR AIRBNB: Cons Buying an Investment Property for Airbnb in 2023 

Like many other good investments, buying Airbnb properties also comes with a few potential drawbacks. Here’s what you need to know about them before investing in 2023:

Cons of Buying an Investment Property for Airbnb in 2023

Higher Upfront Costs
Airbnb property investors often need to spend a lot of money after buying to make their properties appealing and inviting to guests. Guests want a combination of the coziness they get from home and the comfort and cleanliness they get from hotels.

As a result, you need to invest a significant amount of money in furnishing your Airbnb with fine appliances and fancy decor. You must also buy stocks that your guests will appreciate, such as tea, coffee, and snacks.

Also, since you want to keep the job professional, you might need to hire an interior designer. It will ensure that you achieve the intended vibe.

You will also need to employ a professional photographer to take high-quality photos of the property for listing. It is very important, especially in 2023; yet, many investors tend to overlook this aspect.

Higher Operating Costs
While the potential income is significantly higher, the operating costs are also high. You can expect the following expenses:

Airbnb fees
Cleaning and maintenance
Utilities
Airbnb property insurance
Amenities
Stocks, such as beverages and snacks
Remember, the cleaning and maintenance costs are a bit higher since you must clean the property every time a guest checks out. You’ll also have to pay the property manager to ensure everything runs smoothly.

Greater Risk
Airbnb guests are constantly checking out, sometimes as often as daily. It presents a greater risk when it comes to property damage. Some rowdy guests may host parties that leave you with broken windows and doors or stained carpets. 

Unlike long term property tenants who treat your property like their home, Airbnb guests may not feel responsible for maintaining your property or leaving it as they found it.

You can minimize the above risk by vetting your guests and going through the reviews left by previous hosts on their profiles. Also, ask some additional questions before accepting a rental.

Most importantly, get Airbnb property insurance to ensure that you’re covered in case of any damage.

Success Isn’t Instant
With long term rentals, you simply need to market your property, find a long-term tenant, and start earning a consistent monthly income. It isn’t the case with Airbnb properties.

While you might invest in one of the hottest markets for Airbnb rental properties, you might not receive consistent bookings in the beginning.

You first have to build a good reputation as an Airbnb host. It means you must receive a few five-star reviews on the Airbnb platform. More positive reviews get you more bookings. 

Since you’re just starting, you might have to lower your nightly rates than your competitors to attract your first few guests.

Once you have a few five-star reviews and you’re experiencing at least a 90% monthly occupancy rate, you may now adjust your rates to match the demand.