Best Countries to Start an Airbnb Business
Автор: traveleconomics
Загружено: 2021-02-24
Просмотров: 9151
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Best countries to start an Airbnb investment: check below the list of the most favorable countries to invest in real estate and turn it into a holiday rental
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Are you considering starting an Airbnb business? Learn below what are the top countries currently to start your investment and earn the most out of it.
Best Countries to Start an Airbnb Investment: Factors
It can be rather subjective what makes a good place to start an Airbnb. Some people prefer warm weather and some prefer the beach. Others may like a cosmopolitan feeling, or the country side.
Regardless of personal preferences, let's try to address some of the main factors to determine the success of your Airbnb business.
The main factors to determine whether an Airbnb is a good investment are: regulations, infrastructure, seasonality, cost of real estate, taxes and rental yields.
Airbnb Investment: Country and City Regulations
Before considering an Airbnb investment, one should know what regulations may affect the performance or viability of the business venture.
In San Francisco, CA, you can only rent your premises on Airbnb for up to 90 days a year. You must also be a full-time resident of the place you are renting (for example a room in your house). Berlin is another city with restrictions, you can only rent up to 90 days per year if the place is not your primary residence.
Another regulation aspect to be considering is owning real estate. In some countries, you may face restrictions to buy real estate if you are not a citizen of that country. This laws are becoming more flexible, and in many cases incorporating a company in the given country would solve this problem.
Finally, if you want to live in the same country as you are investing on your Airbnb project, you may need a residence permit. This varies greatly and will also depend on your citizenship, but it is good to check it before hand.
Airbnb Investment: Country Infrastructure
Another thing to bear in mind in your project is the country infrastructure. While owning a beach resort in Nicaragua may sound tempting, the infrastructure will certainly impact your quality of life and inflow of tourists.
Make sure you prioritize regions easily accessible by road, railways and airports. Ideally, places with an international airport at a 50 km range should be a good idea.
Airbnb Investment: Seasonality
Seasonality is one of the key aspects of any hospitality related invested. With Airbnb is no different. While some cities like Paris or Rome tend to have an influx of tourists year round, other cities are not that privileged.
Locations subject to seasonality tend to have a lower, overall earnings. However, it may not be the case, if the season is long or expensive enough to make up for the rest of the year.
A great tool to analyze seasonality is Airdna.co.
Airbnb Investment: Costs of Real Estate, Taxes and Rental Yields
Finally, probably the main part of any real estate investment are costs. Firstly, we should consider the cost of acquiring real estate, and then its operational costs. Then, taxes and rental yields are also very relevant to your investment.
The cost of real estate is especially critical to assess where you can actually acquire units to rent. Some of the most visited cities in the world like London, New York and Tokyo are also some of the most expensive per square feet / meter.
Taxes are also a huge detail you should consider before investing. The tax from your Airbnb income varies greatly from country to country, usually ranging from 3% to 25% in most countries.
Finally, there are the rental yields. They will determine how long you will have to rent your Airbnb unit to recover the investment made.
Best Countries to Invest in Airbnb
03:30 Colombia
04:01 Spain
04:47 Poland
05:22 Montenegro and Albania
05:51 Cambodia
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