Creating an Airbnb rental can be a fabulous income-generating opportunity, but it's not a fit for everyone. Airbnb rentals can vary greatly in your return on investment. Here's what you need to know when considering creating a nightly or weekly rental in and around Excelsior, MN.

Location, Location, Location

What kind of draw does your property have? Are you near any tourist hotspots in the area, such as a cabin near the waters of Lake Minnetonka? How close is your location to local public transport and can guests get a Lyft or Uber easily? Consider if you have parking or whether you're close to local grocery stores and restaurants. The location of your rental matters, as it can greatly affect both demands for lodging and the price that you can ask. Additionally, consider the privacy of the listing, whether it's a room in your existing home or a separate dwelling.

The best cities for Airbnbs typically have a cost of around $100 per night and are occupied over 50% of the time.

Startup and Investment Costs

An Airbnb can be a great earner, but like any other business, there are startup costs that must be considered. Make sure you have a great property with working utilities, sturdy walls, and windows that open—essentially a room or dwelling in great condition. You'll need nice and clean furniture and bedding as well as adequate bathroom amenities for a typical listing. Some Airbnbs add meals and/or kitchen access, so food costs may be a consideration. 

In addition, you'll also have to clean the rooms after each guest. You can clean yourself or hire a service to do so for you. Other costs may include landscaping, pool or hot tub maintenance, insurance costs, and Airbnb fees. Don't forget to calculate the 3% off your profit that comes from the listing platform. Lastly, consider listing setup costs including possible web assistance and professional quality photography.

Rules and Regulations

There are many rules and regulations surrounding short term rentals. These rules can vary between city, county, and even local subdivision. Beyond that, rules can also change quickly. Before beginning an Airbnb rental. you'll want to check with the experts to understand your local laws surrounding short-term rentals and investment properties. Contact Homes by Joel to learn how to choose the right location inside or outside city limits for your new Airbnb.

Airbnb is the next "big thing" in income investments. Don't let this opportunity pass you by. Learn more about purchasing and providing for your next income property by viewing the right Excelsior homes for sale with experienced real estate experts.