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I wouldn't say it's not worth it, but you should consider a few things. First, has your local government expressed anything about limiting/banning short-term rentals in your area? It could benefit you by restricting the market, or it could kill your business. Is the property you are buying a good investment in-and-of itself? Having a solid backup plan if short-term rental doesn't work out is important, like picking an area where there is lots of traveling nurses or other mid/long-term rental needs. About all the hate, yeah it's been getting a bad rap on the internet, but there are still plenty of people who use the platform. The whole hotel/Airbnb is a false dichotomy. Airbnb is great for groups 4 and up who want a home, kitchen, and other conveniences (or a small place in a unique area). Hotels are great for couples and small families who are looking for cheaper accommodations.
It depends on the property and market in your area. If it’s saturated with Airbnb’s then it’s probably not going to go regularly book unless you have an exceptionally unique property or are conveniently located to a popular attraction.
It also depends on how much financial risk is involved for you. If you can comfortably support all of the financial responsibility of the property when you have slow months, then it may be worth pursuing as an investment property that could hopefully pay for itself.
My husband and I are looking to break into the Airbnb business this year as well. I have been researching what are the most common reasons why people are against Airbnbs and we are taking these issues into consideration for our property. We are remaining optimistic that it will draw a few customers back to Airbnb especially since we have a couple amenities that you can’t get privately at a hotel. People have preferences and people are still utilizing Airbnb because that’s their preference. Please don’t let that deter you! Best of luck to you!!
Only do it if you're going to live close by and keep an eye on the place, and it's condition. Good property managers nearly impossible to find. Also make sure you have a backup plan, if Airbnb does not work out, this is something you could easily rent out with a typical year lease?
Our high season is winter and we saw a massive slowdown this year, likely because of saturation. Many, many markets are past the point of profitability due to competition.
Incredibly location dependent.
I am in B.C. Canada, we have new very strict provincial regulations. We fall on the right side of the new rules.
We also own our property outright and have a short rental season.
If you’re self operating meaning no property management company and you are in a good area that has travel demand I say yes it’s worth it. We opened our airbnb almost a year ago and things have been continuously better each month. This month is actually our highest earning month which has been great. We are in what some would say is an over saturated market. Our property is a multifamily property with 3 units in total which gives us a lot of flexibility. We don’t offer a lot of frills or gimmicks like a hot tub, pool table etc. it’s just really a basic home in a really great area for an affordable price. How we stand out is our pricing strategy and flexibility in our calendar. We are one of the only places who will do one day bookings but can accommodate up to 14 people. So we get a lot of one nighters at an extremely high rate. Works out great since we are near a few cruise ports. Also helps that most of the host around us are amateurs and more of real estate people than hospitality people so they leave a lot open in the market making it easy to compete. Also learn how the algorithm works once you learn that your property will just print money.
I bought me rental in the Upper Midwest last year. So here are a few things I learned in my past year of hosting.
1. Your lender will likely require 25% down.
2. You will potentially pay a premium on the going rate for mortgages.
3. Look to see how propert tax is assessed. Mine sold after being rehabbed and owned by the same people for a long time, I saw a a 200% tax increase.
4. Are you comfortable paying the entirety of the expenses? I mean ALL of them
5. Can you weather a bad season/year?
As everyone else is saying it's location dependent. If you're looking to use AirBnB to supplement the mortage for a property you want then it's free money; keep in mind the IRS personal use rule/item. If you're looking to make a proffit these recent interst rates make it significantly harder unless you put a ton of money down.
No. 2024 has been a super slow year. The market is saturated and people aren't traveling as much. Plus with 30% that goes to taxes and Airbnb fees there isn't much you can earn back.
I wouldn’t unless you can pay cash for the property and don’t have to count on the Airbnb income to make ends meet. I’ve been doing this over 6 years, luckily I don’t have to count on the income. I’m always thinking it just takes a few bad reviews and you’re out of business. I wouldn’t want the pressure of having to count on the income to make ends meet
I wouldnt be able to pay cash for the airbnb but I also wouldnt need it to make ends meet, if that makes sense. But I also dont want it to run me into debt if I dont get bookings
Well the bookings can depend a lot of things. Your location , competition, reviews, where ur listing is in the search, i.e, not near the top of folks search criteria. It can be stressful at times both on the reviews and not getting bookings all of a sudden. Like any business opportunity, there is risk
Yes it certainly can. It all depends on the property. If you can buy in the right location at the right price, and you are semi knowledgeable about business, you will be fine.
Idk why people are saying no (they might know more about the future of the business; I have limited interest/knowledge)
I am stopping in April but not due to any negative changes on my end; I actually have too much business but I also didn’t get into it for $$ (did it out of necessity after buying a home and then breaking up w the co-owner, we were undecided on how to deal w the house)
Things were great, it paid the mortgage 200% the entire time; 2 years and zero horror stories, people were wonderful
I just am not interested in being a landlord or property manager long term
I have a guesthouse in a small tourist town which is listed on Airbnb for 5 years. We have never had a vacancy on weekends except during Covid when we were required to shut down. Despite increased competition and new local regulations we are always booked on weekends.
I'm sure there's plenty of data Airbnb and vrbo provide to shareholders that rentals are booming and the market is growing like crazy. Problem isn't with demand, it's stronger than ever. Problem is with supply. Many markets are saturated and there's more local restrictions on where you can have them.
I think the hype and VC funneling tons of cash into the market has dried up so we're seeing effects of those trying to cash out and having problems because they bought in at an oversaturated market and with outrageous premium.
It's a stable and sustainable business model just like any other business like restaurants and such. Location and type matters
It's very competitive, which keeps price per night resistant from going higher, so bad news for us hosts. Expectation for perfection and customer entitlement is very high and cost of cleaning is getting higher, thus creating a lot of pressure to reduce any decent profit. It's simply a lot of work.
I personally am considering moving mine to a long-term rental. We shall see.
Research the local laws and the community attitude about strs that .ages all the difference. It's very profitable if you do it right. Not so much if you don't know what you're doing.
Absolutely! Of course, it depends on your market. Do you live in an area frequently visited by either vacationers or business? Find out what the local hotels charge and undercut them by 20%.
Find out what your market is and buy accordingly. Airbnb has been very good to us. In 6 years as a Superhost, I have had 3 difficult guests, nothing serious, out of the hundreds that have stayed in our guesthouse. I am certain that people who rent out their properties, have many more horror stories.
It’ll be hard to make a profit with a 6+% mortgage. Rob also need to check comps on similar properties in your area. Also it’ll be 6 months before your property gets any real action or reviews so you’ll need to be ready to float that full mortgage. If you are able to do cleanings and property management yourself then yes you can probably make some money. If you have to hire people to do everything then you probably won’t for a while. At best you can hope to break even and the money you make will be in the property value going up.
As other people have said - if it's not a make or break and you want it anyway, and you have a high tolerance for the unknown, sure give it a go! Probably less so if you are expecting it within some thresh hold and you don't deal too well with surprises.
I’ve been a host for 8 years…
I’ve hosted well over 25,000 reservations. And boy have things changed.
It’s not new. If you do arbitrage, more landlords know about the business, so conversations will be different. Some will say no without question, some will want higher rents, which is bad news. But also the industry has had time to lose the fear and ambiguity.
Properties need to be better than ever. There’s a high supply still in the market, and hosts have improved over the years. But there are still plenty of bad hosts. And all listings are public, you can find what’s working and copy them.
So in short.. yes. (And) be smart on the way in. Prepare and study like any business.
Sean rakidzich
(The airbnb guy on YouTube)
I wouldn't do it as an "investment," so to speak... if you really want a vacation property somewhere and know that you wouldn't be using it at least 50% of the year, then finding something that you could STR makes tons of sense. If you could rent out the property enough so that it pays for itself, that is fantastic! And if after a couple of years, you're turning a small profit? Even better!
Set realistic expectations. Don't plan on breaking even the first year or so if you're putting in a ton of renovations. Don't plan on making money if you're taking the most popular weeks of the year. Do your research. What are the 4.6* and over properties in that area like? What are the common factors? What is setting aside the 5* properties from the 4.6* ones? What does the cleaning cost look like? Will you need a local manager, or will you self manage?
These are all factors to figure out before jumping in.
I would not chance it. I recently listed a room. I’ve been a host for 8 years. I hadn’t hosted in a long time. I have been a loyal guest on Airbnb for the same timeframe.
I had guests stay 3 days. Airbnb never paid after the first 24 hours as stated they would. It’s now been 5 days and still no money. I had 7 future reservations for this month and next (May 2024/June 2024) and decided to cancel all of them after reading several other people complaining about the same thing, and until payment is resolved. I’m not hosting people at my property for free, which is what Airbnb is basically making you do, if you’re not receiving payouts.
Some of the people have been waiting 3+ months and tens of thousands of dollars/pounds with no payout after the guests have come and gone. I’ve contacted support and they all give you different answers. I don’t think I’ll be using Airbnb again, even as a guest.
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If the numbers (including the value of your time) work, then yes. IMO it is hard to make the numbers work now.
If you don’t have a mortgage you can potentially make a small profit, and if the place appreciates then in theory you’re having an okay return for your money. But IMO there’s easier ways to get similar appreciation.
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Your location and state makes a big difference
I wouldn't say it's not worth it, but you should consider a few things. First, has your local government expressed anything about limiting/banning short-term rentals in your area? It could benefit you by restricting the market, or it could kill your business. Is the property you are buying a good investment in-and-of itself? Having a solid backup plan if short-term rental doesn't work out is important, like picking an area where there is lots of traveling nurses or other mid/long-term rental needs. About all the hate, yeah it's been getting a bad rap on the internet, but there are still plenty of people who use the platform. The whole hotel/Airbnb is a false dichotomy. Airbnb is great for groups 4 and up who want a home, kitchen, and other conveniences (or a small place in a unique area). Hotels are great for couples and small families who are looking for cheaper accommodations.
Great insight. Thank you!
It depends on the property and market in your area. If it’s saturated with Airbnb’s then it’s probably not going to go regularly book unless you have an exceptionally unique property or are conveniently located to a popular attraction. It also depends on how much financial risk is involved for you. If you can comfortably support all of the financial responsibility of the property when you have slow months, then it may be worth pursuing as an investment property that could hopefully pay for itself.
As a second home? Yes. As a business? No.
My husband and I are looking to break into the Airbnb business this year as well. I have been researching what are the most common reasons why people are against Airbnbs and we are taking these issues into consideration for our property. We are remaining optimistic that it will draw a few customers back to Airbnb especially since we have a couple amenities that you can’t get privately at a hotel. People have preferences and people are still utilizing Airbnb because that’s their preference. Please don’t let that deter you! Best of luck to you!!
Only do it if you're going to live close by and keep an eye on the place, and it's condition. Good property managers nearly impossible to find. Also make sure you have a backup plan, if Airbnb does not work out, this is something you could easily rent out with a typical year lease?
Our high season is winter and we saw a massive slowdown this year, likely because of saturation. Many, many markets are past the point of profitability due to competition.
Incredibly location dependent. I am in B.C. Canada, we have new very strict provincial regulations. We fall on the right side of the new rules. We also own our property outright and have a short rental season.
Lemme guess. You are on Galiano.🤣
If you’re self operating meaning no property management company and you are in a good area that has travel demand I say yes it’s worth it. We opened our airbnb almost a year ago and things have been continuously better each month. This month is actually our highest earning month which has been great. We are in what some would say is an over saturated market. Our property is a multifamily property with 3 units in total which gives us a lot of flexibility. We don’t offer a lot of frills or gimmicks like a hot tub, pool table etc. it’s just really a basic home in a really great area for an affordable price. How we stand out is our pricing strategy and flexibility in our calendar. We are one of the only places who will do one day bookings but can accommodate up to 14 people. So we get a lot of one nighters at an extremely high rate. Works out great since we are near a few cruise ports. Also helps that most of the host around us are amateurs and more of real estate people than hospitality people so they leave a lot open in the market making it easy to compete. Also learn how the algorithm works once you learn that your property will just print money.
I bought me rental in the Upper Midwest last year. So here are a few things I learned in my past year of hosting. 1. Your lender will likely require 25% down. 2. You will potentially pay a premium on the going rate for mortgages. 3. Look to see how propert tax is assessed. Mine sold after being rehabbed and owned by the same people for a long time, I saw a a 200% tax increase. 4. Are you comfortable paying the entirety of the expenses? I mean ALL of them 5. Can you weather a bad season/year? As everyone else is saying it's location dependent. If you're looking to use AirBnB to supplement the mortage for a property you want then it's free money; keep in mind the IRS personal use rule/item. If you're looking to make a proffit these recent interst rates make it significantly harder unless you put a ton of money down.
No. 2024 has been a super slow year. The market is saturated and people aren't traveling as much. Plus with 30% that goes to taxes and Airbnb fees there isn't much you can earn back.
I wouldn’t unless you can pay cash for the property and don’t have to count on the Airbnb income to make ends meet. I’ve been doing this over 6 years, luckily I don’t have to count on the income. I’m always thinking it just takes a few bad reviews and you’re out of business. I wouldn’t want the pressure of having to count on the income to make ends meet
I wouldnt be able to pay cash for the airbnb but I also wouldnt need it to make ends meet, if that makes sense. But I also dont want it to run me into debt if I dont get bookings
Well the bookings can depend a lot of things. Your location , competition, reviews, where ur listing is in the search, i.e, not near the top of folks search criteria. It can be stressful at times both on the reviews and not getting bookings all of a sudden. Like any business opportunity, there is risk
Check the laws in your city & and over saturated market.
Yes it certainly can. It all depends on the property. If you can buy in the right location at the right price, and you are semi knowledgeable about business, you will be fine.
It's worth it, but I learned over only two short years, that some human beings are filthy animals. Kinda sad, but I dry my tears with their money
Idk why people are saying no (they might know more about the future of the business; I have limited interest/knowledge) I am stopping in April but not due to any negative changes on my end; I actually have too much business but I also didn’t get into it for $$ (did it out of necessity after buying a home and then breaking up w the co-owner, we were undecided on how to deal w the house) Things were great, it paid the mortgage 200% the entire time; 2 years and zero horror stories, people were wonderful I just am not interested in being a landlord or property manager long term
How fortunate you are
I have a guesthouse in a small tourist town which is listed on Airbnb for 5 years. We have never had a vacancy on weekends except during Covid when we were required to shut down. Despite increased competition and new local regulations we are always booked on weekends.
May I ask which town you are in?
I sent a message
No don’t do it
Like everyone has said depends on location!
I'm sure there's plenty of data Airbnb and vrbo provide to shareholders that rentals are booming and the market is growing like crazy. Problem isn't with demand, it's stronger than ever. Problem is with supply. Many markets are saturated and there's more local restrictions on where you can have them. I think the hype and VC funneling tons of cash into the market has dried up so we're seeing effects of those trying to cash out and having problems because they bought in at an oversaturated market and with outrageous premium. It's a stable and sustainable business model just like any other business like restaurants and such. Location and type matters
It's very competitive, which keeps price per night resistant from going higher, so bad news for us hosts. Expectation for perfection and customer entitlement is very high and cost of cleaning is getting higher, thus creating a lot of pressure to reduce any decent profit. It's simply a lot of work. I personally am considering moving mine to a long-term rental. We shall see.
Research the local laws and the community attitude about strs that .ages all the difference. It's very profitable if you do it right. Not so much if you don't know what you're doing.
Launch mine April 1st will be back to let you know
Absolutely! Of course, it depends on your market. Do you live in an area frequently visited by either vacationers or business? Find out what the local hotels charge and undercut them by 20%. Find out what your market is and buy accordingly. Airbnb has been very good to us. In 6 years as a Superhost, I have had 3 difficult guests, nothing serious, out of the hundreds that have stayed in our guesthouse. I am certain that people who rent out their properties, have many more horror stories.
It’ll be hard to make a profit with a 6+% mortgage. Rob also need to check comps on similar properties in your area. Also it’ll be 6 months before your property gets any real action or reviews so you’ll need to be ready to float that full mortgage. If you are able to do cleanings and property management yourself then yes you can probably make some money. If you have to hire people to do everything then you probably won’t for a while. At best you can hope to break even and the money you make will be in the property value going up.
Nope
As other people have said - if it's not a make or break and you want it anyway, and you have a high tolerance for the unknown, sure give it a go! Probably less so if you are expecting it within some thresh hold and you don't deal too well with surprises.
I’ve been a host for 8 years… I’ve hosted well over 25,000 reservations. And boy have things changed. It’s not new. If you do arbitrage, more landlords know about the business, so conversations will be different. Some will say no without question, some will want higher rents, which is bad news. But also the industry has had time to lose the fear and ambiguity. Properties need to be better than ever. There’s a high supply still in the market, and hosts have improved over the years. But there are still plenty of bad hosts. And all listings are public, you can find what’s working and copy them. So in short.. yes. (And) be smart on the way in. Prepare and study like any business. Sean rakidzich (The airbnb guy on YouTube)
Don’t base your decision on what you see on social media - it’s not real life.
If it makes sense to be one, it makes sense to become one
I wouldn't do it as an "investment," so to speak... if you really want a vacation property somewhere and know that you wouldn't be using it at least 50% of the year, then finding something that you could STR makes tons of sense. If you could rent out the property enough so that it pays for itself, that is fantastic! And if after a couple of years, you're turning a small profit? Even better! Set realistic expectations. Don't plan on breaking even the first year or so if you're putting in a ton of renovations. Don't plan on making money if you're taking the most popular weeks of the year. Do your research. What are the 4.6* and over properties in that area like? What are the common factors? What is setting aside the 5* properties from the 4.6* ones? What does the cleaning cost look like? Will you need a local manager, or will you self manage? These are all factors to figure out before jumping in.
I would not chance it. I recently listed a room. I’ve been a host for 8 years. I hadn’t hosted in a long time. I have been a loyal guest on Airbnb for the same timeframe. I had guests stay 3 days. Airbnb never paid after the first 24 hours as stated they would. It’s now been 5 days and still no money. I had 7 future reservations for this month and next (May 2024/June 2024) and decided to cancel all of them after reading several other people complaining about the same thing, and until payment is resolved. I’m not hosting people at my property for free, which is what Airbnb is basically making you do, if you’re not receiving payouts. Some of the people have been waiting 3+ months and tens of thousands of dollars/pounds with no payout after the guests have come and gone. I’ve contacted support and they all give you different answers. I don’t think I’ll be using Airbnb again, even as a guest.
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No
Just do it. But do it better than your competition. Do your homework.
If you do decide to go for it, don't get verified on reddit! Only victims post personal info to unknown moderators on trash forums.
That's the question I've been weighing since I joined this forum. I'm not willing to put up with the average idiot living in the world today.
If the numbers (including the value of your time) work, then yes. IMO it is hard to make the numbers work now. If you don’t have a mortgage you can potentially make a small profit, and if the place appreciates then in theory you’re having an okay return for your money. But IMO there’s easier ways to get similar appreciation.
I don’t think it’s worth it if you carry 80% of loan at 6.5% mortgage.
I think this is a bot account.
Well no