Vacation rentals are becoming increasingly popular in Atlanta as travelers look for budget-friendly accommodations in some of the most popular parts of the city. Rentals provide an authentic, local experience for business travelers and vacation-goers and lucrative money-making opportunities for homeowners.
Atlanta is one of the largest metropolitan cities in the United States. It has been ranked as the #1 city people are moving to, and the 7th most visited city in the country. 29 Fortune 1000 companies are headquartered here.
As the busiest airport in the world, over 100 million travelers pass through Hartsfield-Jackson each year, half of whom travel here to attend one of the countless trade shows and conventions held here annually.
With so much traffic coming to our city each year, Atlanta’s market for Airbnb properties has experienced constant growth in both the suburbs as well as the metro area over the past few years, as the popular short-term rental concept catches on with more of the public.
So how much money are Airbnb hosts in Atlanta really making?
We recently sat down and crunched numbers and analyzed thousands of rental listings all over the city. The result was a fascinating insight into this lucrative opportunity for homeowners.
Here’s what we found:
As of November 2016, there are currently 3,514 active Atlanta properties on Airbnb. That number seems like a lot until you consider that nearly 6 million people live in Atlanta and another 100 million are visiting here each year.
Compare that to a city like Los Angeles, which currently has nearly 17,000 active properties on Airbnb, and you quickly find that the opportunity for Airbnb growth in Atlanta is enormous.
Of these 3,514 properties, 2,637 of them have the ‘Entire Home’ available, versus just a private or shared room.
- 393 of these are studio apartments or condos
- 1,157 are listed as 1 bedroom condos, apartments, or lofts
- 655 are 2 bedrooms
- 311 are 3 bedrooms
- 121 are 4+ bedrooms
90 properties in Atlanta are currently being advertised as a Shared Room.
1,128 properties are being offered as a Private Room.
How much are people paying to stay in these properties?
The average nightly rate being charged in Atlanta ranges from $96 – $466 per night. Of course the exact amount being charged depends on certain factors like the number of bedrooms in the home, the property’s location, demand on that particular day (which changes daily depending on what events are taking place in the city), and the home’s features.
Depending on what type of property you have, nightly rates in Atlanta have increased 10-20% in the past 12 months, a great sign for anyone considering jumping into this type of real estate investing.
An Airbnb property managed correctly in Atlanta should easily stay booked at least 125-150 nights a year, under normal conditions, when managed properly.
How much do Airbnb hosts in Atlanta earn?
Currently, the average income being made by Airbnb hosts in Atlanta ranges from $12,760 – $32,333 a year. Again, the exact amount an individual property earns will depend on the type of property, it’s location, features, nightly rates and availability.
And in case you were wondering, only 10% of Atlanta’s Airbnb properties earn more than $32,000 a year.
Keep in mind, these numbers are averages. Homeowners who are doing a poor job of managing their property will likely earn less than $12,000 a year. These are usually people who are self-managing their own Airbnb listings without professional management help, so their income is unfortunately limited.
When working for our clients, we always utilize some form of dynamic pricing when placing a home on Airbnb. This is the same type of pricing used by airlines and hotels. When demand goes up, prices increase. The same should be true for your Airbnb rental. Optimizing your pricing on a per day basis can lead to a significant increase in monthly earnings.
If you’re trying to compare the pros and cons of listing your home on Airbnb versus going the traditional way of finding a full-time tenant for your home, consider this:
The average monthly income you’re likely to receive in Atlanta from renting your home with a traditional tenant on a 12 month lease is $1,663 (if you’re lucky). The average monthly Airbnb income is at least $2,606 (or more). Which would you rather receive from your property?
These are the current numbers for Atlanta. Keep in mind, these projections are based off general market data for the area and these projections are pretty conservative from our standpoint. If your property is managed correctly it’s very possible to exceed these projections.
As a management company specializing in Airbnb rentals, we help our clients generate the maximum income from their rental and investment properties. Whether it’s a private room or the entire home, we take care of property listings, guest reservations, looking after your home, and everything in between.
We are focused on building the best experience for hosts. Just hand us the keys and we do everything else.
Basically, you do no work, and make more money. How? Our core is data and rent optimizations. We have a complete and thorough schedule of all the events, conferences, concerts, and sporting games and understand how to price your property. We also update pricing daily to ensure you have the lowest possible vacancy.
Plus, as a full service real estate team, when the time comes for you to buy or sell your property, we can handle that too.
If you’d like a free consultation to discuss the income potential of your property or to learn more about our services, click below to schedule your free discovery call.