🏠 Why everyone’s talking about Airbnb…
Most of you know Airbnb - the #1 app for booking places to stay while traveling.
But have you ever thought about owning an Airbnb?
Thousands of entrepreneurs build businesses renting out Airbnbs. Most make a good side income, and some make millions a year.
After speaking with a friend of mine who lives in the U.S but owns a few Airbnbs abroad, I asked myself…
“If I were to build a 6-figure Airbnb business on the side, how would I do it?”
I decided it all starts with the ‘where.’
So, here’s my breakdown of the top 3 cities to buy an Airbnb.
PS - If you like this breakdown, let me know in the survey at the end. I liked writing it, so if you’d like more on this topic let me know!
🧠 My Methodology
There are over 100,000 cities listed on Airbnb. That’s a lot of places to look through…
So to start off, I made a list of the top 50 cities with the highest Airbnb revenue based on stats from a few different websites.
Then, I narrowed the list down to 10 based on these 3 factors:
The median property cost for the city
The median nightly rate on Airbnb
How often Airbnbs in that area are booked (percent occupancy)
Once I had my top 10, I picked 3 based on these preferences:
Near popular attractions like beaches, mountains, tourist attractions, etc
Small Airbnb market (not saturated with Airbnb listings)
Available commodities like restaurants, shopping, gyms, etc.
Finally, I had my 3 cities. Turns out, a lot of YouTubers recommend these as well!
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🌎 My Top 3 Spots
To be completely honest with you, I was not expecting this one to make the list. But numbers never lie and this one ranked #1 of 50. Why?
According to Business Insider, the average annual revenue of Fairbanks Airbnb owners is $49,389.
Milan made #2 on the list because of its 75% occupancy rate paired with a high median nightly rate of $140.
This makes sense as it’s one of the largest cities in Italy (population) and has year-round attractions like fashion shows and trade fairs.
The only reason Milan didn’t make #1 was because there are more Airbnb listings here than in Fairbanks.
With a 101% increase in RevPAR (Revenue Per Available Rental), people are calling Leikanger the next big thing for Airbnb.
What’s nice about Leikanger is that most tourists visit for the outside attractions. So Airbnb hosts here can charge similar night rates to bigger cities without offering a luxury apartment.
🧰 The Airbnb Investor’s Toolbox
To build a 6-figure Airbnb business, there’s a lot more that goes into it than finding the cities (obviously).
However, I like to keep this newsletter less than 5 minutes long.
So, I linked a few resources for you to help you build an Airbnb business.
AirDNA: A great tool for finding hot Airbnb markets around the world and evaluating your competition. For what it’s worth, I’ve had a lot of fun playing around with it these last few days.
Automate your Airbnb: The best part of owning an Airbnb is that 95% of it can be automated like cleaning services, checking, and maintenance. Use this guide to boost profits and efficiency.
Pricing your Airbnb: Before you purchase an Airbnb, it’s important to know how much you can rent it out for. Use this guide to learn about pricing, and when to expect a return on your investment.