Is 2021 your year to add a vacation rental to your income portfolio?
If so, I’m sure you’re wondering HOW TO I CHOOSE A HIGH-DEMAND LOCATION for the rental…
In today’s episode, I share the two big filters that I value as critical when I’m looking at an area for a potential Airbnb or VRBO property.
Additionally, I share a strategy (which I like to use as a secondary strategy) that ticks all the requirements but serves a specific audience.
Are you looking to add a vacation rental to your income portfolio but you’re not sure where to start?
Do you know 2021 is your year to finally move toward financial independence and know real estate is a part of that plan but you’re just not sure HOW to get in?
If so, I’ve got something just for you… In fact, I’m working on it RIGHT NOW!
It’s called The 6-Figure Vacation Rental Blueprint: How to Find, Furnish, and Fill Your Profitable Short-Term Rental and I can’t WAIT for you to check it out.
If you want to be the first to know when it’s live, pop over to ginnytownsend.com/rental to claim your spot on the waitlist.
I’m so excited for you and the possibilities that are ahead of you.
And if you’re curious about how much you could potentially earn with an Airbnb in your area, I can send you a free and pretty powerful tool to help you estimate…
Visit GinnyTownsend.com/estimate to claim access to this powerful free tool!
Thanks for joining me, and until next time, continue to be up and to the right.
What’s up, Podcast Nation! Ginny Townsend here. I thank you so much for joining me for another episode. I hope this first week of 2021 has been a wonderful one for you. So last night out here in the Northeast. We had a little bit of a snowstorm. It wasn’t anything like, you know, it wasn’t a blizzard or anything, but we woke up to
A perfect little Winter Wonderland. Oh my gosh. It was just like there was no wind. It was just like really quiet snow that fell and we woke up to a couple of inches just resting precariously on every limb of every tree stunning. So if you hear a little bit of background noise, which kind of seems to be the trend of late. My husband is out on the tractor kind of clearing the driveway and good time.
Right good height times. Have I also that’s what’s happening over here. Now, let’s dive into today’s episode. I am really excited to talk about this topic of finding a location for your Air B&B because if you are considering adding a vacation rental a short-term rental furniture rental, whatever you want to call it to your income portfolio. I’m sure you have wondered but where do I even start with the location right? Because if you’ve heard
any kind of isms or phrases in the real estate world the real estate investment world. I’m sure you’ve heard like the three most important kind of factors for a property in real estate are location location location. I’m sure you’ve heard that right, but then also it really is the only thing you can’t change about a property you can always update a property you can put on an addition you can reconfigure the rooms within your property. I mean, it’s pretty Limitless except for
Probably can’t change the location of the property. So now with that in mind, there are a couple of different I think wonderful approaches to finding the right place for your first or next Airbnb and how I’m going to approach this today because I don’t know your situation specifically and I’m just going to share with you my Approach and I hope that it is helpful and then you
Kind of layer over your lens of your specific goals your specific situation as you plan to add an Airbnb to your income portfolio. Okay. All right.
Let’s start with the bottom line. I want to have a property that has appeal in any Market or economy. So with that I mean an up economy a down economy an economy that’s dealing with a pandemic. I want my properties to have Universal kind of all Market appeals. And yeah, I just Evergreen right. I was talking about this. I think it was in the previous episode.
Just like find the toilet paper in your industry. Right what find the thing that people are always going to buy in in your in your area in your region, whatever because I don’t want to have and again, this is just my take on things, but I don’t want to have the largest most spectacular property on Airbnb. Like I’m not looking to add a an enormous mansion in Malibu to my problem my portfolio right at that is not my
Take on this my take is I would much rather have a little bit smaller, but you know two or three-bedroom listings that get consistently booked that have consistent revenue and have consistent profits. That is what I’m looking for in this and I like just because a place is smaller like that doesn’t mean it’s not going to be a great experience or that it’s not going to be well-appointed. Like it’s it’s still going to be charming and beautiful and you know, I’m thinking through the guest experience at every level.
No, but I’m thinking from a property and vocation perspective. What is going to have an appeal in every market and then in addition to that I’m also looking for a place or a location that has like multiple types of Travelers or avatars are drawn to it in pretty much any kind of economy. So not and I’m not high standards that all right. It needs to have just general appeal but not just one.
Specific type of traveler appeal I want multiple different types of Travelers. So if if one type kind of falls off, there are still several others who are still looking for that type of a place make sense. Okay, and then I so today I’m going to share with you to kind of filters or lenses to look at this through with with a secondary strategy to both. Okay?
Okay. So the first one is actually a phrase that I had used at the top of this episode by calling it an evergreen location. So
I would imagine that you have been to a state or national park. I don’t know where you’re listening to this from but obviously like in the United States there are State and national parks that people love to visit and they love to visit in any economy. There are people who do this. I mean in any up economy, it’s not a bad thing to go to a national park or State Park like it’s not you’re not suffering by doing that right, but also in
Down economy is maybe people are wanting to still do a family vacation, but don’t want to spend an exorbitant amount of money on that vacation that year so they might look for more of a state or national park trip Bingo right that that ticks the box for upmarket down market and then as we’ve seen the pandemic people are kind of flocking to the well not flocking there the anti flocking to rural areas and a little bit, you know more breathe.
Living room literally. So again another type of way to look at Evergreen locations is water. So Lakes our Rivers, I think people will always always travel to places with water. There’s something so peaceful about it, especially kind of getting away from whatever hectic or stress people love to go to water. So it doesn’t have to be like I said an enormous mansion on the beach in Malibu.
In fact know at least for me. No, but there are so many lakes and rivers throughout the country that are in more cost-effective places that will have a draw for people for multiple reasons in any economy. So again, it could be a family wanting to do a little bit of a less expensive but still experience Rich vacation, but that it could be someone who is just graduated from college and
and once did have you know, whatever kind of solo trip and just wants to be out in nature. It could be there’s just multiple multiple reasons people travel again to stay by water now speaking of avatars for state or national parks or lakes or rivers or hiking obviously we all I love hiking I’ll speak for myself. I love hiking and so to be able to stay in a place that is right off of it.
Rail system is incredible, right? So again these avatars for this Evergreen location kind of batch. I’m sharing with you right now would be families young families, whatever older families but as well as singles couples friends or what I’ve seen interestingly increase over the last couple of years our full-time Air B&B guests and this includes a couple specific groups though. There are
are many outside of these specific groups who who stay at airbnb’s often now, it might not be a hundred percent of the time but they book and book and book and book and just kind of move around. So one group is a millennial traveler. So if someone’s job, I mean pre-pandemic was remote and they could work from wherever they did and I think they still do right A lot of people still do and there’s also retirees
So they’re not necessarily locked down to a like to the need to be in one place anymore or wanting to experience the country experienced different parts of the country and see beautiful things along the way you’re yes. Oh so for these Evergreen locations again, I’m going to name off the avatars that I noted for you families singles couples friends Millennial Travelers who kind of live full-time Air B&B retire?
Our he’s that maybe not for the full year, but like spend a considerable amount of time on Airbnb properties that is an enormous percentage of the population looking to stay at these kinds of Evergreen locations. So that in my mind is gold very very literally gold but then also note and this isn’t going to stay this way. I don’t think forever but I
I feel like it’s worth noting for the at least short to mid-term Trend. I think things will continue to be rather virtual and buy things. I mean work and maybe even school. So families have the ability to travel a lot more and not just over Christmas break or winter break or summer break or spring break or some schools have flow breaks, but families are having the flexibility to be able to visit places.
Aces pretty on going without time limitations and what’s interesting is they’re staying places longer. So again, it’s not just a weekend because the weekend isn’t necessarily mean much for Mo work or school perspective right now, but then yeah, it’s almost like they’re Travelers that are almost no, it’s like Nomad traveling. I guess we could just say that so that is the Evergreen location again with all
The different avatars who are drawn to it gold. Then something else that I like to look at is does the place so maybe it’s not near a state park or national park or it’s not right by lake or river or hiking whatever but does it have four-season appeal? So I like to think twice about a place that only has seasonal appeal and I know this isn’t a perfect example, but
But I think it’ll make my case ski resorts. So if yeah, so if there’s not many activities on either of the shoulder Seasons or in the summer Nur the ski resort, you were pretty much relying on there being a snow Rich ski season that people are going to that Resort that you’re going to be booked solid like you’re putting so much value.
It’s weight on a ski season being successful that I don’t like all of those factors being completely out of my control. And so again, I know there are plenty of ski resorts that have built-in summer activities or the towns that they’re in have more summer activities. So this isn’t a etched in stone rule, but it’s probably not something I’m going to invest in anytime soon. So take that again for what it’s worth it. Just thinking about like if if
People leave a certain area during a certain time. I kind of you know, there will always be people coming into that area traveling but I want to know does a place does a region have its own for season appeal. Is there a draw to that area for each season? And if so, that’ll make it onto my consideration list in my consideration list is rather long, and I’m always narrowing places down. Okay, so the two
Biggest strategies that I can give you or two biggest filters that I can give you as you are looking to find a location for your Air B&B whether it’s your first your next whatever is making sure it has an evergreen location that people will always regardless of the economy. There will always be a draw or an appeal to that again. It tends to be more Rural right now or at least not in the middle of a city and then also for season appeal is there.
Something that will bring people to your area each season that you don’t have to you know, necessarily write a season of the year off is like Nick people don’t generally come here for that season. I mean that’s it’s a risk, right? So for season appeal I think is really important. And then also I’ve mentioned this in previous episodes, but I think it’s worth noting for this does tick the list of
It works well in up economy’s down economies and clearly in a pandemic is to focus on a specific audience and the one I’m going to share with you today is care providers. So this would be maybe geared towards travelling nurses who are working at a hospital. So if it’s near a hospital where obviously go back and listen to that episode, I will link to the episode The I can’t remember the episode number at the top of my head, right?
Now but I’ll link to that in the show notes where I explain the all of the pros of having a traveling nurse has strategy for your vacation rental or furnished rental. It’s such a powerful straddle strategy, but traveling nurses aren’t the only people who might be wanting to stay near a hospital. There are obviously Specialists being brought in to all kinds of hospitals right now and that but that thing is that always happens right specialist are always being brought in.
And then there is always the idea of family members wanting to be nearby. So this doesn’t have to be I mean that is this could be a potentially weighty topic but it is also a very realistic topic that people may just want to be nearby if someone is in the hospital or if someone is having a procedure and obviously at this time, they’re not allowed it into the hospital, but they want to be nearby or for instance.
If my daughter had been born a month later, that would have been in the middle of lockdown in March of last year. So I don’t like my husband wouldn’t have been allowed in the hospital let alone any other family and we don’t live near family right now. So everyone would have to come in and having a place to be to stay very near the hospital that would have been really nice, you know, if that need had a rose, so
Paying attention to again being near hospitals is another strategy for up down or pandemic type of economies. Okay. So again to reiterate the two strategies that I love to look at as the Evergreen appeal. So what is again that toilet paper strategy, what are the things that people are always going to buy always regardless of the economy, but then and then also in addition having a four-season appeal
So there are no like things that naturally happen each season that draw people to that area and then my it’s those two kind of can go together. But this other specific one that I felt was worth mentioning because again, it does tick all the boxes of economy down economy and pandemic is to help provide a place for care providers like traveling nurse nurses and Specialists. So in conclusion
I mean if you’d asked me this a year ago, I would have definitely answered this question differently. But I also like that this season has really forced us. Well, it’s given us the opportunity to increase our business savvy to think about. Okay because we had been I went might still be in a bull market. I haven’t quite looked have a quite followed see if it’s still described that way but I’m sure I think it is.
We’ve been in the I think it’s been the longest running bull market in history. Someone DM me on Instagram. It’s Ginny Townsend if that is not the case, but I think it is. So I think we might have been, you know lulled into thinking that you know, maybe this one is here to stay or kind of forgetting the kind of the fundamentals that work in any economy because we simply just didn’t have to have to flex that muscle.
so again, I think this is an opportunity to increase our business savvy around being Evergreen around being Timeless, and I also think
This is a reminder of this season has allowed us to be reminded of the importance of having a long-term approach. And obviously this doesn’t mean that you can’t change course later, but it really is the long-term approach. I think that tends to be more profitable what I’ve seen so I that’s why I want to have vacation rentals that have appeal in all kinds of markets and economies.
So thank you again for joining me today. I hope you found this very helpful. I hope you found this very actionable. So take time and do your research but know that you’re also not alone. So again, I am incredibly excited to announce that I do have a waitlist open for a program that I’m creating with you in mind it is what I would have wanted to know what I would have craved what I would have done a lot.
Got to know when I first started out with my first vacation rental and it is full of systems. It is full of checklists. It is full of ways for you to make sure that you can be as profitable as possible where to spend less. Like where does it make the most sense to spend more? And where do you not have to spend more? Like for instance Wi-Fi, right and I mean
No, I’ve talked about this before but but making sure you have the best Wi-Fi possible. That’s where you spend the money and then you can always find ways to save on other things elsewhere and I’m going to have all of my favorite lists and hacks. I have a very specific list of what I think is the most important to spend money on and to get that wow factor that pop factor and then another is can be a little bit. You know, they don’t have to be as flashy so I can’t wait for this.
This new program to go live and again, I’ve been created with you and mind. So if you hop over to Jenny townsend.com to tool that is where I have the waitlist if you if you want to hear exactly what is coming down the pipe and want to know exactly when you can get your copy of what I’m calling the six-figure vacation rental roadmap how to find furnish and fill.
Will your profitable vacation rental? I’m so ecstatic about it. So again hop on over to Jenny townsend.com to rental and secure your place on the waitlist. Thanks again for joining me today, and I can’t wait until next time but until then continue to be.