The landscape of the real estate market is changing dramatically, thanks to short-term rental properties. The increasing popularity of Airbnb and other similar services is encouraging property owners to invest in homes and condominiums that tourists find desirable. Our REALTORS® want you to make the best long-term investment choices possible. When considering properties to invest in for these purposes, we encourage you to ask the following questions:

• Which area is idealfor investing?
  Although you may earn renters with a home in any location, one reason renters choose Airbnbs is convenience. They desire a comfortable, affordable space that places them right where they want to be. Look for investment homes in up-and-coming neighborhoods or in established neighborhoods which are hotspots for tourism. Choosing an areaclose to reliable public transportation, amenities, and attractions is also a wise decision.
  
  
• How much are you willing to invest?
  As you scope out properties for sale in New England, you'll see a range of listings in and out of your budget range. Before you make serious considerations, you need to set boundaries for how much you're willing to invest. This includes more than just the purchase price; you'll need to pay for upkeep and maintenance. You'll also need to factor in any potential income you may lose if your property is not rented out as frequently as you hope.
  
  
• Will laws, rules, or ordinances prevent you from renting your home out?
  Here's a tricky problem that many homeowners fail to spot. HOA bylaws, city legislation, and county ordinances may prevent youfrom using your property as an Airbnb. This is especially common in newer developments. Do your research into the current or pending rules that would prevent short-term rentals.
  
  
• Who will manage and maintain your property?
  It's not uncommon for a real estate investor to purchase a rental property far from their primary residence. Although this is a lucrative option, it also requires reliance on others to manage and maintain the space. Consider who you will entrust to look over the property andassist renters. You also need to have an emergency contact available.
  
  
• What is your long-term contingency plan for the property?
  If all goes according to plan, you'll enjoy a consistent income from your short-term rental property. However, you should still have a backup plan if this property fails to attract short-term renters. If you'll keep the property, decide whether you'll live in it or open it up to long-term renters. If you plan on selling, consider which enhancements you can make to ensure you can earn a return on investment.

Here are a few other features and factors to consider when searching for a rental investment property:

• Comparable rentals in the area. Search Airbnb and similar sites to seerental homes available in your area, what amenities they include, and the rate they charge.
• Property taxes, neighborhood fees, and total monthly bills. The cost of owning and operating your rental property will subtract from your net profits. Determine how much you'll spend each month on average and compare that to your anticipated monthly income.
• Potential growth. Ultimately, your successful investment will rely on everything within proximity. Be sure to research trends and invest in an area that has a high upside for the future.

If you'd like to begin looking at potential rental investment opportunities around New England, contact us!