Airbnb or Monthly Rental? (apartment, lease, tenant, renters)

[mdovell]

The house I bought has an unfinished unit. I the framing is there for a ceiling, there's one new window and an area that's obvious to me that it was a bathroom in the past. I'm currently using it for storage. There's no heat in it but there might be be some electric. I'm willing to put in the time, money and energy to gradually improve this to be able to have someone else there as it could offset the mortgage.

But...

I don't know if this would be a airbnb or an outright studio apartment. It is zoned to allow for rentals and there are plenty in the area. In order to stand out some of my long term plans would also be solar on the roof (offset power) and a backup generator (don't lose power). Airbnb would give me some flexibility in terms of the amount of days but a studio apartment could leave me on the hook for things. I can see putting in a walk in shower in the bathroom, living room and maybe some storage up stairs. Short term rental I think maxes out at a month but if I charge even $150 a day that can add up depending on events. I know as a airbnb I'd have to stage some of it but not as much as a general studio.

any ideas/experiences

[elnina]

I think you should finish it first to make livable, then decide what you want to do with it.

[T. Damon]

Is this in an area that supports short-term rentals/Airbnb, i.e. a popular touristy area, near an airport, a vibrant downtown, state park, or beach? I’m not an expert but it would seem that should come into play when deciding how and if to bring it up to standards as a rental. Around these parts Airbnb rentals are a dime a dozen as in many cities but I could see in many if not most areas they might not pan out so successfully.

[rodolfocostarica]

Airbnb may make more money if you take into account T. Damon's excellent points. Just keep in mind airbnb requires other things such as your need to respond quickly to rental requests. Answer questions of guests. be very friendly and helpful to everyone including some you may not particularly like.


also different tax and accounting items. Do you need to pay special permits and or sales or lodging taxes where you live? Who is going to clean out the unit after every rental? Meet guests? Stay up late when they dont arrive in time?



Check out airbnb units in your area to get ideas and read guest comments for some really good insights. Also you can check calendars and see an idea of how many rental nights the other places get and be able to figure out potential incomes.



Good Luck!

[OPRFmama]

Are you located near any hospitals? You could find out if they employ travel nurses — there are websites geared toward monthly rentals for healthcare professionals specifically, and it could be a steady source of tenants.

[mdovell]

Thanks all. It's near a downtown and some forests. There's many rentals already in the area. Two and maybe three family homes aren't that hard to find.

[charmed59]

I’m going to assume both Airbnb and monthly rentals are equally desired in your area. You need to do the due diligence to ensure that’s true. I’ve done both types of rentals, here are my thoughts.

A monthly rental will require more storage. An Airbnb guest doesn’t require closets for clothes, folks staying a day or two tend to live out of their suitcase while hanging a few things. An Airbnb doesn’t require space for canned goods and it is assumed there won’t be daily cooking, so you don’t need enough space to store entire sets of pots and pans.

An Airbnb needs to be as maintenance free and easy to clean as possible. If you are getting multiple guests in a week you want someplace you can wipe down quickly. Carpets are dicey. It might not be possible to clean out stains before the next guest arrives. Built in shelves require dusting. Pick paint that can be wiped down.

Though you can get more per night with an Airbnb type place, there are more costs. In a month to month situation, and especially with leases, you can insist the tenant pay for the utilities. For an Airbnb you are paying utilities, even when there is no one there.

The wear and tear on furnishings in an Airbnb means you will be replacing furniture, sometimes much more often than expected. Folks will lose silverware. They will break plates and glasses, they will stain linens. It’s pretty much the cost of doing business. A lot of Airbnb’s like to provide shampoo and soap and other hotel amenities. And you do have to provide toilet paper and soap to clean dishes. Those type of things, even the linens, are not expected on month to month leases. And depending on where you live, Airbnb type rentals require you to pay tourist taxes, and maybe register yearly.

On my yearly lease properties I paid only mortgage and property taxes. Since they were newly renovated I didn’t need to fix anything, just drove by the property occasionally to ensure is was kept up. Only had to clean and fix things in between renters, which was every few years.

In my furnished properties I do month to month in high season, three day minimum the rest of the year. Turnover between guests includes cleaning, laundry, and checking that all lights, TVs, appliances still work. If something needs replacing is often needed on that turnover day, so it can be hectic. I love high season, as that turnover is one day a month.