Boston is one of the most lucrative spots in the country for Airbnb
Landlords could make even more money than in the traditional rental market, at least in some months.
Airbnb has taken off around the world, with Merrill Lynch analysts predicting that listings on the home renting platform could make up as much as 3.6 to 4.3 percent of hotel inventory by 2020.
If you’re looking to get into the business you might wonder which spots are most lucrative. Landlords in Boston can already expect to collect sky-high rent from year-round tenants. Could switching to the short-term Airbnb model possibly make even more money? In some cases, yes.
Airdna, a separate service that analyzes vacation rental data, located the most profitable Airbnb cities in the country for owners, revealing Boston as a moneymaking spot for two-bedroom rental units.
The analysts collected data on Airbnb properties in major markets across the U.S. that rented for at least 75 percent of the year with at least 20 bookings in the past 12 months. They compared the earnings on those units to the average rental costs of one- and two-bedroom apartments on the traditional market.
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According to the report, Airbnb units in Boston, New York, and Santa Monica all saw average revenues of $6,000 in the month of June, with the 90th percentile of properties making near $8,000. If traditional Boston renters are paying roughly $3,000 per month, landlords turning to Airbnb could up their intake $5,000 in one month’s time.
It’s not quite as good as that all the time, though. Airdna pointed out that although Boston owners can turn an attractive profit in the summer months, it’s a highly seasonal market that dies down come January and February.
For those traditional renters looking to cover their entire lease by renting a spare bedroom on Airbnb (which may not be allowed by your landlord anyway), the platform might not be so lucrative, however.
Airdna compared the cost of renting a traditional two-bedroom apartment to the price of a private Airbnb rooms listed within apartments, and found that it was nearly impossible to cover rent in this manner in almost every major city.
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