A client recently asked me:
“Should I invest in three one-bedroom apartments or three three-bedroom apartments specifically for Airbnb?”

My professional advice: go with one-bedroom apartments.

Here’s why:

1. Higher Occupancy Rates

One-bedroom units appeal to the largest segment of short-term rental guests including solo travelers, couples, and business professionals. Broader demand typically translates to higher and more consistent occupancy.

2. Lower Operational Costs

Three-bedroom units involve higher furnishing costs, greater utility bills, more wear and tear, and increased cleaning expenses. Smaller units reduce these costs significantly, boosting net returns over time.

3. Risk Diversification

Investing in multiple one-bedroom units spreads risk. If one unit is vacant, others still generate income. Larger units create more financial exposure when unoccupied.

4. Better ROI per Square Foot

Smaller units often provide quicker breakeven and higher returns relative to purchase price. The key is optimizing cash flow, not just maximizing size.

Please Note!

Bigger isn’t always better. Successful Airbnb investment is about understanding guest demand, operational efficiency, and long-term profitability. Smart investing aligns property choice with strategic goals, not just appearances.