Anybody do Air BnB?

fastfredracing · 03-02-2019, 05:13 AM

Im pretty burnt out on the traditional tenant landlord thing.
We are getting ready to boot the tenant out of our nicest house. Bad pay, lots of excuses, and we are leaving at least $250 a month on the table with him in it He is on a month to month lease, and it is time for him to go.
We want to re hab ( really nice ) and try to up our rents on this one ( well all of them really ) . It is next on the chopping block.
This place is in a nice area, super cute little house, and is only 7 miles from the stadiums and 10 minutes to down town PGH. I could see this being a strong rental in this segment . It is small enough, that we could make it really nice without a lot of effort.
Im thinking about giving it a go. Anybody ever tried it ?

billybek · billybek's Garage

We rent AirBnBs quite often or VRBO.
We have never had a problem with those renting the properties and have stayed in some pretty cool locations.
As a landlord, you know that what ever problems you have with a tenant are going to be very temporary.
As a neighbor to that type of rental, I can tell you that they are not good for the community and the direct neighbors to the house. People on vacation have a tendency to stay up and party while the rest of the neighborhood is preparing for another work day.
Fortunately, the one at the end of my street is far enough away as to not bother me but the people right next door get upset with the noise.

recycled sixtie · recycled sixtie's Garage

Fred if your property is far away enough from neighbors so as not to bother them then I would say go for it. Billy B mentions that air bnb can bother neighbors as well.

When we were in Palm Springs a couple of years ago we stayed at the Best Western. We walk in the local neighborhood. Talking to a couple of owners they say the area has been ruined by air bnb tenants. We are talking about multi million dollar homes. There is simply not enough distance between these properties. Having said that we did not notice any excessive noise.

Cheers, Guy

mepstein · 03-02-2019, 05:52 AM

Review your homeowners insurance.

Gogar · 06:25 AM

You may have to get a license from your town. Denver requires two different ones that are cheap and annoying to get. And when they see you have a license they immediately look on your tax forms to see if you’ve reported any income from it, for better or worse. If you’re already a landlord you’re probably used to that stuff.

I agree with billy about how an Airbnb in the middle of a regular neighborhood block can be a source of frustration to its neighbors.

LakeCleElum · 03-02-2019, 06:38 AM

Be prepared for some very pissed OFF neighbors.
Be prepared for laws or HOA rules changes to prohibit, even if allowed now.
Be Prepared to a ton of garbage.
Be prepared for a difficulty finding help to clean/yard work, etc.
Be prepared for tenants that steal and damage your belongings.

I live next to one. We are both on 3 acres. In January, I can smell marijuana smoke inside my house with all the doors and window closed. In the summer, having an outdoor BBQ and have to take my food inside due to the setting dust from tenants speeding down their long dirt driveway (Mine is paved).....I have another neighbor that talked of burning it down.

speeder · speeder's Garage

Not sure about your location but I think that it only works where tourists and travelers pass through a lot. Big business in NYC, L.A. and SF, not so much in Bakersfield, if you get my drift.

fastfredracing · 03-02-2019, 07:24 AM

Pittsburgh is not like you are picturing it anymore Denis. And we are 10 minutes, with traffic ,away from most of the big draws .
I know of lots of people who come into town for a hockey, or Football game, concert, outdoor events, and stay the night . I think its perfect.
I see nothing to lose in trying, except for maybe a few soft months of rent.
I don't think there is a way a tenant can fk us over that we have not been through yet. Garbage, angry neighbors, damage to the property stolen belongings, Bring it ! At least we will be paid, before they even twist the door knob , and will have to go away the next day .

Seahawk · 07:40 AM

I stay at ABnB's all the time...have you done a search in your area?

You can see your competition in real time and their booking schedule.

We are thinking of buying an apartment in the small NC town my company is in since the nice AbnB's book months in advance...the town is great and hard by the Smokies.

BTW, Bob's experience is not unique.

fastfredracing · 03-02-2019, 08:00 AM

I always get great advice here. I will definitely check for city requirements, insurance, and check for comps. You guys rock.
I did a quick search a few months back, and remember thinking that the #s make sense, just not sure if we can book enough nites to keep it cashflowing . That is my real only fear .

Seahawk · 03-02-2019, 08:09 AM

Quote:

Originally Posted by fastfredracing

I always get great advice here. I will definitely check for city requirements, insurance, and check for comps. You guys rock.
I did a quick search a few months back, and remember thinking that the #s make sense, just not sure if we can book enough nites to keep it cashflowing . That is my real only fear .

Again you can see individual property bookings in real time in your exact area - the ultimate "comp" system.

A few other things. The woman that owns the apartment in NC I stay at when I can (always booked) has told me ABnB clients can be a bit needy: Check in procedures, not as advertised, WiFi slow, etc., etc...think new tenants every few days and the concomitant headaches.

We looked at "Horse ABnB", essentially hosting horse folks as they travel the East Coast. Good market at certain times of the year. The money looked excellent until we peeled the onion back a bit.

Best.

ckissick · 03-02-2019, 08:16 AM

We have an air bnb place. It's not a house, but the upper floor of an office building that is zoned commercial and visitor serving. So we are legit and not bothering neighbors. In fact, we aren't allowed to rent for more than 30 days.

The only drawback is the time spent managing it. Most weekends are booked and we have to get the place cleaned after every visitor. We have a maid, but she's not always available. We've spent many a Sunday evening doing maid duties. I think we're making more than we would if it were rented full time. But we are in a touristy town and overlooking a harbor.

scottmandue · 03-02-2019, 08:54 AM

Quote:

Originally Posted by speeder

Not sure about your location but I think that it only works where tourists and travelers pass through a lot. Big business in NYC, L.A. and SF, not so much in Bakersfield, if you get my drift.

There goes my plans for a big vacation is Bakersfield!

speeder · speeder's Garage

I did not know that you were in Pittsburgh. I don’t know my PA. townships that well. Pittsburgh would be a good Air BnB market, I’d think. Universities, culture, etc. I have a friend doing some RE investing there right now and he made it sound tempting.

I wish I could rent a few apartments in my building and Air BnB them, I could make a fortune. Seriously. They won’t allow it. A few years ago, when it was all starting, a neighbor was doing it but they put the kibosh on it. They just busted a guy in NYC for running a big op and skirting the laws. He immigrated from Israel w $500 in his pocket a few short years ago and he was taking in something like $2M a year.

look 171 · 04:01 PM

ABB are always rented to the max around here. I know a couple of neighbors do this and have no vacancy through the year because we are in the center of town, 7-10 miles to Hollyweird and 3-5 miles to downtown LA. They are near the bottom of the hill with parking. My next door neighbor, the trashcan people, rented their lower section of their house for a few years. Blew up parking and they were sometimes loud, but most were respectful besides the ones that rent to shoot. Those guys were a pain in the ass because its business to them and have no respect to the neighbors. Thankgoodness they are not doing that anymore since their baby came along. I thought about doing this with our rental house up the street. We can get upwards of 4500 bucks each month but who the heck is going to do the cleaning after they are gone weekly? Professional cleaners need a steady schedule, so at a drop of a hat for a two or three day rental, to get them in will be an issue. My wife and I aren't going to be a slave to that so we waited for a year before we can bring in a tenant. Single woman with a little girl. I can't ask for a better tenant so its not 4500 a month. Not a big deal but I stay sane and still make out like a bandit.

look 171 · 03-02-2019, 03:57 PM

Quote:

Originally Posted by speeder

I did not know that you were in Pittsburgh. I don’t know my PA. townships that well. Pittsburgh would be a good Air BnB market, I’d think. Universities, culture, etc. I have a friend doing some RE investing there right now and he made it sound tempting.

I wish I could rent a few apartments in my building and Air BnB them, I could make a fortune. Seriously. They won’t allow it. A few years ago, when it was all starting, a neighbor was doing it but they put the kibosh on it. They just busted a guy in NYC for running a big op and skirting the laws. He immigrated from Israel w $500 in his pocket a few short years ago and he was taking in something like $2M a year.

I think our wonderful new Governor put a stop to Air BB. If not Its just time. The writing is on the wall.

I know some of the big building on the outskirt of Hollywood, actually on sunset past the Kaiser, are all rented through AirBB. My real estate agents told me there's a company out there that will pay owners a guarantee monthly agreed amount and they take care of the rest from furniture, to rental and cleaning. Sit back and collect. I decided to not go through with this only because I want to keep rif rafs out of my block.

speeder · speeder's Garage

Jeff, there are plenty of cleaning people in L.A. that would love the extra work and $$. I recently hooked up a close friend who Air BnB's his apt in my neighborhood while he's been in NY the last couple of years w a great cleaning lady.

The cleaning people I know are a large extended family who clean for some of the richest people in the USA, they are great people that can be trusted w the keys to any house. They are picky about who they will work for but still accept new business if you ever need a number. LMK.

look 171 · 03-02-2019, 04:07 PM

Quote:

Originally Posted by speeder

Jeff, there are plenty of cleaning people in L.A. that would love the extra work and $$. I recently hooked up a close friend who Air BnB's his apt in my neighborhood while he's been in NY the last couple of years w a great cleaning lady.

The cleaning people I know are a large extended family who clean for some of the richest people in the USA, they are great people that can be trusted w the keys to any house. They are picky about who they will work for but still accept new business if you ever need a number. LMK.

Thanks Dennis. Will take you up on that when the time comes.

I found most of the cleaning folks already have a steady schedule. Problem with Air BB is that these folks sometimes stay for the weekend, or sometimes week or two. No steady schedule really screw things up. Another hot place is out in Coachella with music and many German tourists. I know a women who nos has three homes out there. She keeps her cleaning folks on a monthly payment, so on a drop of a dime, they go out and clean and prep for the next ABB renters. These are 1950s homes with almost nothing done to them. You know, the pink bathroom ones? She put a coat of paint on the interior to keep the same theme and they rent like hot cakes. Clever.

red-beard · red-beard's Garage

My business partner loves Airbnb. I'm "meh" on it. We're batting about 50% in Boise.

To me, the most essential thing is off-street parking. If you don't have it, that is a problem.

I don't care about anything else, have a Keurig machine and a bunch of pods.

Well, I do care about having a door on my bedroom and good temperature control.

jhynesrockmtn · 03-03-2019, 10:45 AM

I have rented from Air BnB but not done it as a landlord. I own a small 6 unit building and would consider it for a unit but I think the tenants would not be pleased and I would not blame them.

Consider the turnover costs in your math. Cleaning every time, re freshing the place with linens, consumables in the kitchen and bathrooms, etc. Years ago we considered turning a cabin we had into a weekend rental before VRBO and the like. The property manager's advice was, make sure you have a lockable storage space in the unit, consider vacancy periods and assume you keep 50% of the gross. We ended up renting it longer term to a stable tenant.