There are many lucrative opportunities in real estate. One that recently has taken off is geo farming. What exactly is geo farming? Geo farming is the process of buying up land, building a house on it, and renting it out short-term to tourists.
Geo farmers capitalize on the high demand for affordable lodging among world travelers who don’t want to hassle with hotels.
In turn, geo farmers enjoy high rental rates for their properties and a greater sense of freedom than a traditional landlord. A geo farmer has the ability to determine exactly how much money they’ll earn from a property and how long those profits will last.
So in theory, geo farming could be a useful way to generate passive income. The only problem is; that geo-farming is not as simple as it sounds. Here are a few tips on how to do it right:
Choose a Neighborhood with Solid Turnover
While geo farming can be a lucrative business model, it’s not foolproof. You need to choose your neighborhood wisely. Look for areas that have a steady stream of vacationers who are staying in the area for an extended period of time.
Also, don’t be afraid to do some market research using various social media outlets like Facebook. Figure out where your target audience hangs out and does their own research on the area before choosing to invest there.
Typically, the higher the turnover rate, the more money a geo farmer can make. But this isn’t always true. In fact, some geo farmers have turned to using Airbnb because of its high peak season prices and low off-season ones.
Pop by with a Gift
Due to their long customer tenure, hotels and other traditional lodgings are able to attract repeat customers by offering them discounts and favors such as upgrades and late check-out times. Geo farmers cannot afford to do this.
That’s because they need to make their property appealing as quickly as possible in order to entice vacationers who’ve never stayed in the area before into staying there. A real estate pop by gift is the perfect way to offer something special to these first-time guests.
A few geo farmers have been able to effectively use this tactic by placing their property in a location that requires those vacationers to make a considerable amount of extra time traveling on the road and through the city.For example, some geo farmers have placed their homes in areas that are inconveniently located away from public transportation hubs. This approach is effective because it forces travelers to go out of their way just to stay at a property. This gives them an incentive to pay more money if they want convenience in town.
Start a Neighborhood Newsletter
Geo farmers should use Facebook and other social media outlets as a way to effectively communicate with their guests. This will allow them to build a solid customer base of repeat customers who are regularly staying at their properties.
If they don’t have any repeat customers then they’ll never be able to make up for the high costs of purchasing property, building houses, and renting them out short term.
Without any repeat customers, it could take several years before you can make up for the high purchase and construction costs of purchasing a property. But with a strong newsletter, geo farmers can get started with immediate results.
Host a Block Party
Vacationers enjoy having their properties located near convenient vacation spots. However, there’s no such thing as a perfect location for every traveler. Sometimes it’s not the location that is driving people away from certain properties instead, it’s the appearance.
So in order to remedy this problem, geo farmers have been known to host block parties. These are special events that are typically held in the summer months and offer residents an opportunity to meet with their neighbors on their street and get acquainted.
These gatherings allow geo farmers to build a sense of community among local residents which will help them identify potential problems with their properties. For example, if there is an issue at a geo farmhouse then it’s more likely that a neighbor will report that issue than a guest who is looking for a place to stay.
After all, they don’t want the property they live in to be affected by the same problem.
Put Together a Neighborhood Association
Some geo farmers have done their research and learned that they can find potential guests by targeting local organizations. For example, if your location is near a traveling university then you should become a member of the organization.
That way you can learn about various events that are held at the school and target those travelers for possible stays at your property. This will also help you build a solid customer base of repeat customers who recognize you as someone who is invested in the local community.
Geo farming is a proven and effective strategy for people who want to earn some extra money by renting out their homes. However, these properties need to meet certain criteria in order to make this business model work.
And the first step in doing so is understanding that there is no such thing as a perfect property for every single person. So contrary to popular belief, geo farmers don’t need to build the perfect home in order for it to be easy for guests who want to stay at their property.
All they need is something that works reasonably well and has a good brand image with its neighbors.