Top 5 Reasons to Start your Airbnb in El Paso, TX

Top 5 Reasons to Start your Airbnb in El Paso, TX

Season 2: Episode 2

In the last couple of years, Airbnb hosting has become a popular method to maximize your rental income. These 5 reasons will help you think about investing in our hometown, El Paso, Texas.

Here are the Top Five Reasons why you should start your Airbnb in El Paso Texas:

1. Big Demand, Low Supply of Airbnbs

You might be wondering if there would be any demand for your property on Airbnb once you start. After all, El Paso is not a popular vacation destination for many.

The truth is, there are actually multiple reasons why your property in El Paso will do extremely well on this market. Firstly, it's important to understand the market’s demand and your potential customer's perspective so that you can price and book your property successfully.

El Paso has a healthy flow of guest looking for a furnished home:

  • Traveling Professionals - Do you know that many professionals need a place to stay in El Paso for a week, two weeks, or a month? Traveling Professionals require a furnished space with all amenities for a relatively short time. This includes traveling nurses, construction specialists and many more.
  • Military Base Travelers - Being in a city that has a Military Base there is a big demand for furnished properties that will allow hosting a guest with a short term contract.
  • Families with Pending Home being Built - Texas has seen a lot of new residents moving from California and elsewhere looking to find an affordable home and sometimes they build it from scratch. Sometimes they bring a large family (with pets) and must wait months. In the meantime, they need a furnished place to stay.

2. Affordable Properties and High Rents

A common saying in Real Estate investing is that “You make your money when you buy, not when you sell.” - this is true for Airbnb investment, and El Paso is a great way to buy cheap in a big city.

Property values in the city have not increased much until recently, but it remains an affordable destination for investors. In fact, El Paso was ranked #7 most affordable Large  City for Homebuyers by AdvisorSmith study. And per our experience properties in great locations are still affordable, unlike other major cities in Texas.

Rents in El Paso are considerably high with a stable tenant pool. This provides a comfortable cushion that allows for your mortgage to be lower than a rental income. Airbnb provides a higher margin of profit, making rental a great back up. Here is a great article from Century 21 on Rental Investing in El Paso TX

 3. Reasonable Upkeep Cost

It's crucial that the costs of maintaining your property are reasonable and that you feel your money is actually staying in your pocket rather than being spent on everything.

  • Affordable Utilities - El Paso is very affordable in terms of utility bills, maintenance, cleaning, and other facilities. For example, electricity rates in El Paso TX are about 28% lower compared to the national average per this Study by FindEnergy.
  • Relatively Low Labor Costs - The reason we have a low labor cost is that the federal minimum wage is relatively low, and Texas has not increased. It's great for us because they feel like their money is being well spent, and for us, it's relatively inexpensive. You get to keep more of the profits you make, it's a win-win.

4. Welcoming City

Friendly City - El Paso has a southern friendly atmosphere where everyone behaves kindly to each other. There are a lot of friendly people you can talk to and network with and have a relationship with. Feels so positive, isn’t it!?

Safe - Overall, it's a very safe city. As a matter of fact, we're right downtown, we have 14 properties downtown, and I have no negative reviews-which speaks volumes in and of itself about safety. I can tell you from personal experience that a high percentage of people in El Paso are very friendly, not rude or racist or anything that makes a visitor or a visitor feel unwelcome.

Whatever location you choose in El Paso for your Airbnb property, it would be surely profitable because the majority of them are simply great neighborhoods. People can walk around freely in this city.

Airbnb Friendly - As of the publishing of this blog, El Paso City has no regulations or restrictions for Airbnb.

5. Stable Job Economy and Low Cost of Living

El Paso has great economic growth potential. While New York City and Los Angeles may be exciting to visit, they are not always affordable places. El Paso has a thriving job market that makes it feasible for those with entry-level or high-level experience to work in the city.

There are so many reasons why El Paso is taking off economically, but I believe that the main one is that there is a lot of potential. As a result, more and more companies are moving to Texas. Therefore, both the cost and social ability will continue to rise.

Some more attractive points

  • Weather - Those of you who live in El Paso would be familiar with the lovely weather all year round.  Its sunny skies and mild temperatures make it ideal for those who love to spend their weekends outside and enjoy the vibrant city culture.
  • Outdoor Activities - The sun and mild temperatures make El Paso perfect for those who love the outdoors and the vibrant city culture. It's no wonder it’s also popularly known as “the Sun City”.
  • El Paso also offers the best of both city life and the calmer atmosphere of the suburbs. The city is full of history, and there are plenty of restaurants, museums, and local landmarks to explore.
  • New Business Investment - Wondering why is that so? Well, because there are so many new businesses coming to town.
  • All of these constructions coming up will make the city better, which will even entice more people to move here.
  • People are realizing how great of a city this is, so one advantage is that there are still affordable properties available to buy and rehab

Do you want to start investing in El Paso TX?

Here are a few tips we suggest to where to start.

  • Studios and single-bedroom - These types of Airbnb rentals are always booked in our catalog. We haven't had a day off in the majority of them since we had the Pandemic, so it's evident that demand in El Paso is reaching its full potential, and Airbnb is nearly unavailable.
  • Pet Friendly Stays -There is a huge opportunity to get a large part of the market by allowing pets in your area and most Airbnb’s in El Paso are not Pet Friendly.
  • Larger Homes are in Low Supply - Unlike in the past, right now, there is a trend toward larger homes rather than just more single-family homes or apartments. …and there aren’t many available.
  • Themed Airbnbs - Themed Airbnb’s are in high demand for larger homes, doing that unique Airbnb design will set you apart from the competition.

Even though there are many affordable properties in El Paso, not all of them are ready for Airbnb. You must check for..

  • Safety - If the location or neighborhood does not feel safe or sketchy, it is obvious that your guests will not have a positive Airbnb experience, right?  
  • Easy Access to a Highway - El Paso is not designed for the pedestrian, and most guests will probably have a vehicle. The fastest way to move from one area to another is by highway.

Final Thoughts

Initially, you might feel intimidated about hosting your own Airbnb rental space in El Paso, Texas, but once you get past that fear, you'll be well on your way to a great source of income. So, if you do your due diligence and follow through with the steps, you'll be on your way  to creating the ultimate Airbnb experience.

If you enjoyed this article, share it with your friends and colleagues!

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