Buying a vacation home can be a lucrative investment, especially with the right marketing (such as eye-catching photography and a smartly written vacation rental listing), offering amenities that guests want, decorating intentionally to boost bookings, and more.
But earning the most profits starts right here—choosing the right Airbnb property, in the right place. There are countless vacation home options, from mountain cabins, to beach condos, to lakefront homes.
We manage 44,000+ properties across the country and have seen it all. Let’s walk through how to find the best type of Airbnb for you and your goals.
What’s your financial goal?
First things first, determine your financial aim early on.
Here are some questions to address upfront:
- Do you want to generate extra income? Or, simply cover costs?
- How often will you want to use your vacation home?
- How much would you want to rent to paying guests?
- How much will you allow friends and family to use it?
- Do you have the time and money to manage the vacation rental yourself?
- Do you want to work with a vacation rental management company like Vacasa to market and manage the home for you?
Determine your budget
A savvy approach is to invest in an Airbnb property that you can comfortably afford, so consider all the expenses and costs that will impact your ROI. These include:
- Property taxes
- Covering the mortgage during times of low occupancy
- Stocking your vacation home with essentials
- Insurance
- Furniture and decor
- Property management fees
- Maintenance and repair fees
- Utilities
One of the biggest benefits of owning a vacation rental is that many of these expenses are tax deductible. So, be sure to document them come tax time.
Choose a location that already attracts visitors
As with any real estate investment, location is crucial. Your location determines both your bookings and your profit.
While it’s especially convenient to own an Airbnb close to your home, don’t limit yourself. Instead, expand your search. Some ways to do that:
- Research the most profitable cities. Even easier—consult our Best Places to Buy a Vacation Home report, where we rank the year’s top 25 U.S. locations based on ROI.
- Look at locations that draw a large number of visitors. In general, most travelers head to beaches, mountains, lakes, city centers, national parks and areas close to major events. However, keep in mind that even smaller towns and local gems can garner major appeal.
- Determine the seasonality of the location. When are the low and high seasons?
- Identify potential guests. Who is the location most desirable to—such as families, business travelers, or adventurers?
- Not all neighborhoods are equal. Which neighborhoods attract the most visitors or have the must-see attractions?
