How Your Clients Can Benefit From Real Estate in the Big City
In the current gig economy, it’s easy to market lucrative alternatives in every aspect of life. If you were selling a new car, you might promote the fact that the buyer will have a nice enough car to use as a part-time Lyft driver and that that side job will take care of some of their car loan. Homes should be no different. If you are selling a home in an up-and-coming area, remember to also promote these extra investment opportunities.
Airbnb provides an alternative housing source for travelers. Rather than booking an expensive hotel, tourists can reserve an entire home or private room from Airbnb users. This service allows homeowners to secure a steady income by renting to short-term residents.
Even if your buyer does not plan on Airbnbing in the long-term, there is a consistent advantage in a larger city. During a holiday like Mardi Gras or a big sports game or any local event, hotels will have limited availability and your homeowner will be in a perfectly profitable position to rent out their home for the weekend. Many Airbnbers will stay with friends while their own home is rented out. Or, if Airbnb renters are willing to pay high prices for a major event, homeowners can reserve a hotel out of town and still make money on their rental. This outline covers everything there is to know about becoming the perfect Airbnb host.
Our recommendation: know your buyer’s experience and how the local economy is faring before suggesting this option. A homeowner who is willing to welcome new tenants each week must be open-minded and interested in connecting with their extended community.
Renting is a more permanent source of income but if your buyer is located in one of these bustling cities, renting should be something to consider. It’s common to hear about five or six people living together in an ever-expanding city. If your buyer has the means to purchase a home, renting out a portion of their home is a quick way to earn a part (or perhaps the entirety) of their mortgage each month.
For a homebuyer that is nervous about mortgage payments, remind them that “By renting out your home you are able to transform your liability into an asset,” according to BiggerPockets.com.
Buying a home in a growing city and renting it out to temporary tenants certainly has monetary value. Even while the real estate economy is ebbing and flowing, your buyers will have a steady source of income based on tourism.
Fear over paying the mortgage will be a thing of the past, and they’ll meet plenty of interesting folks along the way.