I’m having great luck in total revenue by renting a 1BR on airbnb relative to the long term rental option. I’m wondering if that will hold true for larger units that are 2 or 3 bedroom apartment. It seems to me that people who are travelling will not place as much value on the unit being larger, having multiple might lead to more parties or noise, and in general pricing wise there would be diminishing returns for larger apartments. On the flipside, long term tenants definately like having 2 bedrooms, and diminishing returns don’t necessarily kick in until you get to 3 bedroom apartment long term. I’m wondering if anyone has empirical experience on this matter.
I have a number of listings ranging from studio apartments (2 of them) to three bedroom apartments (5 x 3 bedroom apartments). I would rather have the smaller apartments. The smaller apartments are, of course, lower costs. This makes a big difference in the very slow months when we’re lucky to have any bookings. We really struggle to get enough bookings to cover our costs on the big places, so now we have to really hustle in the medium/high periods to cover the three months of less than 25% vacancy. We seem to manage to cover our costs on the small places as in our area, it’s more likely to have a single or couple travelling than it is to have large groups or families, who tend to travel more March - December.
We have a 3 bedrooms appartment and getting very good success in medium/ high season
For low season we have to reduce quite much the price
edit:we are aroung 4 time more gross income than long term tenant