Annapolis and its surrounding areas are beautiful, and undoubtedly why residents love living here. The area also has great historical significance as the capital of Maryland and boasts impressive homes. The popularity of Annapolis because of its unique blend of dining, recreation, and waterfront fun has not gone unnoticed. Residents and visitors to the area often see investment opportunities for themselves through rental property ownership.
Perhaps you're considering buying an investment property? In that case, you might wonder whether investing in an Airbnb is the right step or if a long-term rental might offer more security and consistency. Here are some considerations:
Your Investor Personality
Much around investing begins with understanding your unique personality and mindset related to rental properties in Annapolis. Are you someone who enjoys taking risks or do you prefer a predictable and dedicated outcome? Knowing your unique investor personality can help you determine what path is best for you.
Rental Income
When visualizing how to create rental income in the Annapolis area, you should understand that both Airbnb rentals and long-term rental properties achieve the same goal. They both bring in more money for you. The significant difference is the time commitment. With an Airbnb rental, you need to commit to keeping the property in high demand on an ongoing basis vs. a long-term rental where marketing the property tends to take place on an annual basis.
Airbnb
Pros:
- The popularity of Airbnb has dramatically increased over the years.
- Travelers commonly seek them.
- Short-term rental options allow you to charge more per night than long-term renters.
- If you invest the effort necessary to generate interest, you can make significantly more income.
- Fun fact: The average Airbnb host made $44,235 in host earnings last year.
Cons:
- Marketing the property is an ongoing investment of time and money.
- Keeping the home clean, meeting guests, and overseeing online client reviews requires effort.
- Tenants stay for short periods, which can increase utility bills.
- You’ll have additional cleaning expenses if you outsource that responsibility.
Long-Term Rental
Pros:
- Tenants treat it more like their home and maintain cleanliness.
- High-interest rates have increased rental demand among would-be home buyers.
- Provides consistent and predictable income.
- Requires less marketing time and expense.
- Allows for rent increases as market demand rises.
Cons:
- You may need to handle potential evictions if tenants aren’t screened properly.
- You may not enjoy the landlord responsibilities involved.
As real estate professionals who know the Annapolis rental market well, we recommend scheduling some time with us to discuss your investment goals. Let us help you review both options in greater detail and guide you toward the best possible decision.
Contact us today to get started.