Seasonality If you want a seasonal business that sees slower months during which you can catch your breath and work on business strategy, you could consider remote locations that have more appeal during certain times of the year. If on the other hand, you prefer a venture that churns a consistent profit all year round, you’re going to want to open your doors in an urban location or an evergreen vacation resort that draws guests from January to December. Airbnb Occupancy Rate The cities that have a booming economy will naturally attract more tourists. There will be a large number of business travelers as well. It implies the number of Airbnb guests will be high all the time. The demand for short-term rental homes will be constant in these locations. The Rate of Occupancy will be high in these developing cities of the US. Making an Airbnb investment in a location with a high occupancy rate will result in high profits for most of the year. Airbnb Return on Expense A business succeeds when the return on investment is high. Cities that have a high return on investment will have occupancy rates much above the average. You can also have high nightly charges for houses in such cities. One popular way to measure the return on investment is the capitalization rate. Using this rate, you can compare the rental properties in different markets and choose the best one. Airbnb standard daily price The average daily rate of rental properties is different in different US cities. The higher the average daily rate in a location, the better will be the rental income. A high average daily rate combined with a high occupancy rate will make for a profitable business.
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