Is Buying an Airbnb a Good Investment in the Poconos
Buying real estate is a big decision no matter what your motives or where you plan to buy. But if you have a rental property in mind, more specifically, Airbnb properties, keep reading. There is a growing trend and popularity for Airbnb experiences. And there is significant revenue potential available to you if you’re smart about where and what type of property you purchase.
One of the most attractive and high-profile tourist areas in the Lehigh Valley is the Pocono Mountains. With thousands visiting every year, you’re wondering if buying an Airbnb there is a great idea. And today, we'll shed some light on how Airbnb works, the benefits of choosing a property in the Poconos, and what you'll need to consider before buying an Airbnb property for the first time.
Understanding How Airbnb Works
If your goal is to establish passive income, a vacation rental property is a great investment to help you do just that. More specifically, you can look to market its availability using the Airbnb platform, which is essentially what differentiates a typical vacation rental from an Airbnb rental. Airbnb is an online marketplace of rental spaces, some partial, others entire properties, where travelers can visit and book short-term stays. When you own one of these rentable spaces, you have the potential to turn several guests throughout the year. The key to a profitable short-term rental lies in its ability to attract new guests year-round and ongoing. At first glance, buying an Airbnb in the Poconos sounds like an incredibly lucrative idea. With so many already traveling to the area, you're already a step ahead in attracting vacationers.
How Airbnb Properties Are Different from Traditional Rental Properties
Every property is going to present unique benefits and challenges, regardless of its location or Airbnb marketability. But there will be some nuances with the Airbnb property that you won’t have with a traditional rental property. For example, when you own a short-term or vacation rental, you’ll have to deal with decorating and furnishing the space. Your maintenance will be different, too. You’ll change out bedding and amenities after each guest, which, with a short-term stay, will be more frequent than with typical long-term lease agreements. Here are a few other variances you’ll need to expect with an Airbnb:
- You’ll pay for utilities
- You’ll be responsible for ongoing and routine maintenance
- You’ll likely pay for subscription services, like television and internet
- Your home insurance might be more costly
Why the Poconos Is an Ideal Location
There are so many reasons to buy vacation rental property in the Lehigh Valley, whether it’s Allentown, Bethlehem, Lancaster, or small towns dotting the region, chock-full of character and charm. But the Pocono Mountains present even more advantages if you find the right gem to buy.
The popular Pocono Mountains offer tourists, guests, and passers-by the most amazing views and potential experiences. From thrill-seeking adventurers to retired family reunion getaways, the Poconos is a perfect place to vacation. So, naturally, buying an Airbnb there makes sense. Before selecting a property in the Poconos to buy, you’ll want to create a marketing plan to outline all the fun and unique things to do in the area. This list makes your vacation rental more marketable, thus, more lucrative.
- Zip lining through the mountains
- Exotic bike trails for novice and experienced riders alike
- Mouth-watering dining venues with unique dishes and fare
- Wildlife viewing and photography
- Snow skiing trips
- Water activities, including float trips, canoeing, boating, and swimming
Pros and Cons to Consider Before Buying any Airbnb Property
Before you take the leap, sit down and examine your finances to prepare. Once you’re confident you can take the next step, evaluate the various pros and cons before buying an Airbnb property. Again, because these are different from owning and managing than traditional real estate rentals, you’ll want to weigh all the options, good and bad, before making a purchasing decision.
Pros to Consider
- The potential to see significantly higher revenue
- Less dependency on long-term leases and tenants
- Airbnb takes all the guesswork out of “where” to market your space
Cons to Consider
- It might cost more to get furnished and setup
- Operating costs might be higher with a more frequent guest turnover to manage
- Listing on Airbnb and effectively managing it will be a part, if not a full-time job
Tips for Finding Your Ideal Poconos Airbnb Opportunity
The real estate market in the Poconos continues to be hot, and properties don’t stay listed for long. But don’t rush to purchase because you fear missing out on an opportunity. And the Poconos is the perfect setting for all types of properties that would be perfect Airbnb assets. From cozy, remote mountain cabins to upscale and posh waterfront condos, there are a host of property types from which to choose. And all will present their own unique vacation rental experiences you can market to attract guests.
Start with identifying a great location and then explore the various amenities and attractions unique to the space. Remember, you’ll be marketing the vacation experience, which is different from traditional marketing of a living space for a long-term rental. Don’t be afraid of the bizarre or unique layouts, either. Essentially, those are more marketable and stand out from other Airbnb properties in the area.
Most Common Airbnb Ownership Questions, Answered
If you’re buying an Airbnb for the first time, here are some of the most common questions asked, along with the answers you need to better understand your opportunities.
How much does it cost to start investing in a Poconos Airbnb?
Buying an Airbnb property is going to essentially be the same process as buying a traditional home or real estate property. You’ll need to secure a mortgage, which may include a down payment, insurance, title work, and taxes. Explore some of the lending programs available to help you finance your vacation rental purchase and talk with your lending professional for resources and advice for your financial situation.
Is it hard to run a successful Airbnb?
The short answer is maybe. You will need to make a substantial commitment in time and effort if you want your Poconos Airbnb to be successful. The most successful vacation rental owners say it’s a daily effort to stay on top of your task list of marketing, operations, and guest satisfaction.
What type of Airbnb is the best to buy?
Again, unique and special are the best traits of any vacation rental property. And location matters most, making any Airbnb in the Poconos a great first location to buy.
How much does it cost to officially list on Airbnb?
According to Airbnb, most hosts pay a flat service fee which is roughly 3% of the booking subtotal. Guests choosing to book using Airbnb pay around 14% in fees to Airbnb.
So, if your question is whether or not buying an Airbnb in the Poconos is a good and sound investment, the answer is a resounding yes! Consider all these suggestions as you explore your real estate purchasing options and let the team at Homeway Real Estate help you find the perfect Poconos vacation rental to buy. From remote shacks tucked away in the mountains to high-profile condos near the heart of the Poconos tourist towns, our team can help you find it!