Did you know that to start an Airbnb business you don’t have to own an apartment?
Did you know that the investment capital could be less than 15000 euros ?
This and more you will find out in my video.
Hello!
My name is Maria,
a former travel journalist, I run two successful businesses together with my partner Antonio: 5 airbnbs and a restaurant n Rome.
In 5 years I opened 12 airbnbs for other people and right now I am ready to share my knowledge and experience with you. No wasting your and my time, only facts, practical information and my personal experience.
Follow my channel and start your own Airbnb business.
Why Airbnb is so cool?
It is a low risk business if we are not speaking about the pandemic, with a hight profit and around 20% margins per year,
And after you set it up it requires your minimum presence and attention!
Today we will begin with Airbnb fundamentals.
Many people think that you need to OWN the apartment to start this business, and it is a common mistake.
How does it really work?
Here is an explanation.
There are three ways to get an apartment where you can set up your business. First of all, you can set up a commercial contract with an apartment that is in rent
Basically, you come to the owner and say, I would like to open an airbnb in your apartment. Would you like to do that? And you set up a commercial contract with this owner.
This way you guarantee that for 8 or 12 years your money will be frozen there and will bring you profit. Its a very profitable and easy way to start an airbnb business. Complicated part and disadvantage of this option is that not every flat owner would like to do this contract with you because in this case the owner will pay more taxes and probably he doesn't trust you to make an airbnb in his apartment.
If you will manage to convince the owner to convince the owner to set up an airbnb in his apartment its not the easiest, but the best and most economical way to start the airbnb.
Second option is the most expensive one. You can buy an apartment. Here you need to be very very careful, because when you buy an apartment in a distant area, it won't bring you profit or clients. So it's just a waste of money and your time.
Also if you're buying an apartment first of all you should go there with an architect, who will take measures of the apartment and say, that you can make an airbnb there.
Because there are many apartments that are not disposed to become an airbnb. For example in the corridor you need to have at least 14 square m. and if you don't have them the apartment cannot become an airbnb. So you should be careful, not to waste your money and time.
Another thing is if you're buying an apartment in the city centre its quite a big investment so you have to be ready that you wont get a money return in the first year. And you should count in how many years you'll get your money back and in how many years you will start gaining profit. So if it makes sense for you or if it doesn't.
And the third option that I would recommend to everyone who is starting an Airbnb business and has no contacts with flat owners and doesn't have a big capital to buy an apartment. I would recommend you to buy a ready Airbnb business. Some of you didn't know about this option, neither did I before I started this business. So in the market there are flats for rent, apartments for sale and there are apartments - businesses.
So it's a ready airbnb business with a contract, licence and furniture inside. So when you buy and airbnb business what are you getting?
You're getting a licence, which is really important. every respectful business has a licence, so every airbnb business should have a licence. So if you're a client of airbnb you can check the licence on the door or inside apartment.
Second thing is when you buy and airbnb business you buy a contract. And first thing you need to check is when did this contract start.
For example if this contract started 6 years ago and you have only 2 years left, the price should be really low or you don't want to buy this business, because it doesnt make sense for you and you're just wasting your time again.
And the third thing is of course furniture. If you see that the furniture is old and you don't want it you can bargain, because if not it doesn't make sense for you. you would need to throw away all the furniture and pay for it as well and you would need to buy a new one.
The forth thing you need to check is the air conditioning, because you will spend a lot of money to create a new system of air conditioning. and heating. But its a separate chapter and I will talk about it later.
If you're choosing the third option please don't forget about extra costs that you might face in this case.
First of all, the apartment owner would probably ask you to leave a deposit, it would probably be 3 or 4 month rates, that you will be asked to leave in the bank account. This money will be then frozen and then if you don't pay rent the apartment owner would be able to take this money and use it.
The second thing of course is the agency cost. This will depend on the investment value.
according to my experience its about 3-4000 euros.
Season in Rome is very very long, its not like on Amalfi coast for example, where they have season from May to September. In Rome the high season starts on the 1st of April and ends on the 31st of October. And you also have 2 weeks in December.
So basically its a very long season and its rare that you can find such a long season in another city. So consider this as well when you'll have higher margins in your apartment.
Would you like to know more?
Feel free to contact me to get a private consultation on your future Airbnb business.
And don’t forget to follow my channel, because in the next video I'll tell you how to choose an apartment for the airbnb business.
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