Investing in Airbnb Apartments: Why outstanding design is so important
Airbnb rentals have a reputation for being a money-printing machine for owners. In Budapest in particular, the situation is exceptionally attractive: very low taxation, a capital with 365-day tourism, and so far no regulation like we find in other major European cities (e.g. a time limit of 30 to 90 days a year).
Unlike in holiday areas, you can earn money here all year round - with accommodation prices starting at 50 euros a night, even in the bad weather months.
A predictable consequence: new apartments come onto the market every month.
Even though tourism is back at record levels, and even if hotels are not even remotely able to meet this demand, it is foreseeable that revenues will decline as the market becomes more saturated.
Unless the apartments have something special. You will have competition in every district, and it helps enormously if you can show with the pictures that the apartment meets high visual and quality standards.
That's why we attach great importance to making all of our apartments unique. It's like cooking. Everyone has more or less the same materials at their disposal, but it's the preparation that counts.
Our recipe essentially consists of three components:
1) At the location excellent public transport connections regard
2) The one available Place design optimally
3) Outstanding design
1) Why the location is only as good as the public transport connections
In this case we are dealing with an apartment that is very central, but still not in the 'touristy' heart of the city. The building is also not particularly well preserved, compared to the 5th district (parliament), where much has now been restored.
Since the traditional city traveler comes to the city without a car, the connection is essential for a great city experience. This is actually the case in Budapest, just think of the S-Bahn 4 + 6, which run 24 hours a day, usually every 4 minutes, on the city's ring-shaped boulevard.
By making sure that the traveler can get to every corner of the city quickly, we don't necessarily have to buy an apartment directly in the tourist hotspot, which is correspondingly expensive.
For Return So the slogan “the more central the better” is not entirely correct. If the achievable overnight prices are similar, it makes a difference whether you spend 2,500 euros per square meter or 4,000 euros.
You can find the first one here Apartment on Blaha Luijza Square on Airbnb ›
2) Make optimal use of the space: We turn one apartment into two Airbnb apartments
The apartment presented here is not particularly large at 54 square meters, but that is not a disadvantage with Airbnb, on the contrary: small Airbnb apartments bring in hardly less money than apartments twice as large, and the fact that they are not suitable for larger groups is actually a positive thing - both for the condition of the apartment and for the nerves of the neighbors (which could even cost you your license).
Another advantage: small apartments can later be sold much more quickly - in good locations they are usually only on the market for a few days.
The two separate entrances to the apartment were a stroke of luck. Through them we were able to divide the apartment into 2 independent units.
However, such a division also places special demands on planning
- We need 2 kitchens and 2 bathrooms, and they have to be full toilets, an electric toilet with a shredder is not acceptable
- Electric circuits and water pipes must be independent of each other or can be recorded separately
- We need a new heating and cooling system because previously one boiler was responsible for the entire apartment
- The furniture and equipment must be tailored to the Airbnb market and the city's approval criteria. If you don't take this into account in the planning, there is a risk of subsequent corrections, which can be expensive.
3) The impact of design excellence
Anyone who books via a platform is guided by three criteria: location, price, and interior design. In fact, travelers want to feel comfortable in the apartment, even if they are actually just staying there overnight.
A carelessly designed, cheap-looking apartment in a prime location has a bad chance if it is seen in the list view next to another apartment, perhaps 500 meters away, that is well designed.
Yield boost: B location meets above-average design
By the way, investing more in design and materials does not mean that we use luxury brands, but rather that we create an exciting mix of the style of the apartment and modern design. We use furniture, tiles, wallpaper and lights from established manufacturers and dealers, both locally and through special online shops.
Of course we like to use stucco and let the height of the rooms have an effect. If it's possible, we use classic chandeliers, but we don't stop at very modern lights either.
Our goal is to furnish the apartment in such a way that the photos of it have the greatest possible impact on the booking platform. At the same time, the quality of execution must correspond to the expectations raised - cheating here (“home staging”) would be really short-sighted.
Speaking of which, the more “Schedule F” apartments come onto the market, the more important it is to stand out. This means you get better prices even if the supply becomes so large that saturation effects occur.
Magnetism: Design helps to address an appreciative target group
The design has another task: it should attract people who value the interior and treat it with care. This doesn't always work, but surprisingly often.
As a result, we receive a lot of praise and an above-average number of 5-star reviews. All of this has a financial impact.
You can find them here Second apartment on Blaha Luijza Square on Airbnb ›
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