Let's talk about Airbnb/VRBO rentals

[motion]

Are any of you buying homes and renting out on Airbnb or VRBO?

If so, what kind of houses, where, etc. and what are your numbers like?

Since we are no longer really using our house in Montana, we put it on the vacation rental sites. I think its going to work out very, very well in the long term. Now, I'm thinking of selling my Albuquerque rentals and investing in residential in tourist towns.

Here's a quick website I threw together: www.lechateauredlodge.com

Let's talk!

[Seahawk]

There are apparently a number of online how to's, even in person seminars.

I have little to offer other than I use Airbnb, a lot. I am a business consumer so I tend to repeat in the same areas, not resort areas.

I can tell you what, as a business consumer, makes a difference, which is probably different from your potential customer base...with some overlap.

As an aside, we are thinking of working with Airbnb-like outfits that offer overnight services for horses.

Edit: You website is good.

[recycled sixtie]

I think Richard that it is important that the guests do not bother the neighbors. If you have a good distance between your air bnb rental and your neighbors then it is okay.

Top level surveillance is okay but don't know what your local laws permit but perhaps air bnb can give you guidance in that area? Outside surveillance only I would think?

If you are not around in the immediate vicinity to keep an eye on the place you might have to pay somebody to do that in addition to somebody cleaning the place. A husband/wife team could be suitable?

I know where we stay in Palm Springs that the area close to our hotel has high end homes being run as bnb's. The regular resident owners are not happy. However the homes are close to each other.

Likely your property insurance premium will be higher due to having guests. Factor that in to the rental rates. I think overall it is a good a plan. These are just a few ideas off the top of my head.

Cheers, Guy

[scottmandue]

I'm also only on the user end and have used VRBO and been very happy.
Compliments on you website, very well done! Makes me want to vacation in Montana!

[rwest]

I’ve only used Airbnb once and have never rented out anything, but I would do a real good amount of research on local ordinances and any new ones that the local governing bodies are discussing. Lots of people are getting annoyed by rentals near them and demanding restrictions.

[Cdnone1]

I have used them and put our place in the mountains up with a rental service last year. I did NOT want to be a landlord or be involved in advertising, booking, maintenance , cleaning, actually anything. We pay a good percentage but we get a check every month and no one ever calls us.
Oh and I can go on and block out whatever days we want to use and they will clean it when we are done.

[Gogar]

In Denver you have to get a license ($25 a year) and pay 10.75% lodgers tax on your rental income.

I imagine it’s very important to have a good relationship with neighbors or it could become not fun pretty fast.

[recycled sixtie]

Originally Posted by rwest

I’ve only used Airbnb once and have never rented out anything, but I would do a real good amount of research on local ordinances and any new ones that the local governing bodies are discussing. Lots of people are getting annoyed by rentals near them and demanding restrictions.

^^^^^^^^
Well said. You need the okay from the local authorities.....

[stealthn]

I thought you had to be a little more hands-on with AirBnB or at least have a resource local that can quickly react if something doesn’t work. Lots of people I see buying up places just to put them on Airbnb

[look 171]

My neighbor used to do it and the people come and go, go into my back yard thinking its ok, drove me nuts. Trash, noise, smoking, loud parties and all the BS. He also rent the place out to film crews so they can shoot. That was happenning two to three time a week dealing with their trucks and all the BS. I live right fooking next door. Many of my neighbors do it and use part of their house for Air BnB. Parking is the other issue. They all suggest that I Air B and B my empty house (bought the house from the old man two houses up from me) so I can make big bucks. The city of LA has plans in place to deal with all this. Palmsprings is cracking down due to people buying up all the properties and turning them into vacation rentals or B and B. I thought about doing it at Coachella. Its near 29 palms and the German tourists love 29 palms so many of them stay near by. Plus, there's the music festivals. A friend has three B and B there. Its rented 4 days (avg. usually for 5 days at a time) out of a week throughout the year. Relax regulation, unlike Palm Springs. She hires a professional cleaning service, and is always on the computer talking with renters about the properties. That's air B and B. Gotta to keep the ratings up.

[look 171]

Originally Posted by stealthn

I thought you had to be a little more hands-on with AirBnB or at least have a resource local that can quickly react if something doesn’t work. Lots of people I see buying up places just to put them on Airbnb

There's are companies that buy a whole building and Air B and B it. What's not to live, no hotel reg. but run it like one. No daily cleaning service, No check in counter, no dealing with parking and no bell boy.

[billybek]

No experience with renting out a house or apartment I own but I have rented some very cool places via Airbnb and VRBO.
I have not had any problems with either and have stayed in some really interesting and nice homes in great locations.
I like it when the landlord is fussy about their renters. Not as many problems with the party crowd.
RWest has a good point in knowing the lay of the land in different locations. I have heard of some condo associations cracking down on absent owners renting out apartments.
Your website looks great. Would point out that Red Lodge Mountain is probably not all that far away. Looks like a cool ski area. What is it like?
It is a bit far out (9.5 hours on good road) for a weekend trip from Calgary.

Edit: I should read a bit more carefully. I see you did mention the ski area.

[ckissick]

I rent out the top floor of my office building on VRBO and AirBNB. Check it out:

https://www.vrbo.com/765413

It does very well at $450/night. Most weekends are booked and lots of week-long rentals over the summer. We're located in a funky harbor area with boat yards, etc. It's not a regular quiet neighborhood.

We are zoned as commercial and visitor serving. So our building use is as per the zoning. In fact, I'm not allowed to live there permanently if I want. I work on the floor below, so we are always handy. That's a big plus. If you don't live near the place you should hire a real estate management company.

[hcoles]

Be advised - some cities/counties are limiting short term rentals including AirBNB. We list on AirBNB and get about 20% on AirBNB, 60% on VRBO and 10% Trip Advisor. 10% repeaters that know us. We are 75% full with short term rental. Renting the same house for 20 years. It's more work than you think. We personally inspect and repair/etc. after each check-out. We may which to a management company - right now we are the management company and also manage another property that is a short term (vacation) rental. My wife does 99% of the work.

[Eric Coffey]

Originally Posted by stealthn

I thought you had to be a little more hands-on with AirBnB or at least have a resource local that can quickly react if something doesn’t work.

I think that hits on a very important aspect to consider. It would seem that AirBnB is similar to Uber in that your "rating" can make or break you, and many guests know this, and use it as leverage. I've used several AirBnB's and the hosts have always lived close-by and have been overly accommodating. Great for guests, but as a host I can see where it might be a bit nerve-racking to provide top-level hospitality (or face the consequences), especially if/when something goes wrong.

At the last one I stayed in, the ice-maker in the fridge went out just prior to my arrival. The host was in a panic that it wasn't operational, and was scrambling to get it fixed before I checked in. When I got there, I calmed her down and explained that it was a non-issue for me, and that if I needed ice there were several grocery stores within a 2 mile radius. Even after explicitly stating that it was not a concern in the least, she still ended up giving me a discount (unsolicited).

So, running an AirBnB might be like running a restaurant where 100% of your patrons were food critics/Yelpers...

[Iciclehead]

My neighbours have what they hoped was their retirement retreat in Montana, enjoyed it and loved the dream of spending significant time there.

VRBO owner took over the unit next door...and has totally ruined the place. Loud, raucous parties with many groups coming through, damaging goods on the common balcony, parking all over the place, ****ing in public....pissed to the gills and barfing all over.

They are selling out....on the basis of their experience, I'd never be so crass as to rent my places out VRBO....

Dennis

[URY914]

In a related subject I looked into a same type service for renting RV's. Motor homes and all types of travel trailers can be rented just like an AirBnB. I found it interesting. Who knew?

[911 Rod]

Let's talk about airbnb?
The new owners next door to me renovated to sleep 12 and has turned our lake front home into a living hell every weekend.
If it caught fire I would not call 911.

[Cdnone1]

The agency that we rented with restrict rental numbers and drive by the property each evening to count cars and ring the doorbell if they are over the limit. We have a full time resident in the place next door and we talk monthly to make sure it is not effecting his life.
At the end of the day it is still our home and not a party place

[ficke]

Originally Posted by motion

Are any of you buying homes and renting out on Airbnb or VRBO?

If so, what kind of houses, where, etc. and what are your numbers like?

We have yearly lease houses and manage a few and having been doing it for over 30 years.
We bought one recently for a client and are trying Airbnb with it.
This house would regularly rent for $1,000 a month.
Airbnb so far in 9 months has averaged $2,000 a month.
The maintence fees are of course much higher on the Airbnb, cleaning averaged at $400 a month, then there is food and higher management fees as you have to make at least 20 transactions, a month.
So far it is a wash defiantly not better.
We will give it a year beyond this year and then make a determination as to the real viability of Airbnb for us.
My feelings are the people who can make money with it rent their own resisdence out while they are on vacation or something. They already own the home and it is already furnished etc.
But for a investor with multiple house's, not sure it is a good idea.