Exactly what is the difference between what this person is doing and running an unlicensed extended-stay hotel?
Nothing. I like it.
I Bought An Apartment To Rent Out On Airbnb
91–100 of 386 posts
Re: I Bought An Apartment To Rent Out On Airbnb
#92That's messed up for the neighbors. Please don't do this.
I don't want to come across as being facetious, but why? At least in my building, there's a large percentage of neighbors who I don't know at all - whether they were renting via Airbnb or owners of their condo, it doesn't make a huge difference to me.
Because those people, even if you don't know them, are part of the community of the building, and for the most part people will respect the building they live in (obviously there are those people who don't as well). When you have strangers coming and going constantly, you lose some security in who is around you and when - and while it might be that the largest percentage of AirBNBers will treat the property with respect (and not just the apartment, but the building), it still increases the overall risk (either directly form bad short-term tenants, or even not properly closing the lobby door, or letting people in behind them that should not be in the building).
Re: I Bought An Apartment To Rent Out On Airbnb
#93Good, concise write up with real numbers which is nice. But the woman who is doing all that cleaning and contact work for $200/month is the one making this possible (so it seems) and that could quickly eat up profits (though the ROI is great enough that there's lots of room there). EDIT: Also, is there currently an AirBnb manager market? Similar to the cleaner/manager he has, it would be great for people to invest re…
Indeed. Seems like the place to be is AirBnB property manager. Have 6-12 properties to manage and you have a full-time income and perhaps part-time work.
Of course, I would start out low ($200/month) then raise and raise the fee when you become indispensible. The absentee owner is essentially just an investor with the capital outlay. And being far away and totally reliant on the cleaner/manager, you can probably squeeze him until he's making only 10% annual return (better than stock market, just to leave some incentive). The owner makes it easy to arbitrage him when he puts his financials in the open.
In your EDIT, I think you are essentially talking about a real-estate investment portfolio manager. You'd take money from investors, fly around and buy up property, then manage the cleaner/managers, take 50% of the profits and give the other 50% to the investors.
Re: I Bought An Apartment To Rent Out On Airbnb
#94Average monthly revenue: $1,634 Rough monthly profit: $1,134 (after cleaning, bills and other expenses) subtract $200 for the monthly maid service, $196 for Las Vegas' 12% hotel tax. HOA fees, utilities, cable, and everything else is only $104 per month? Something doesn't add up here. (But I'm a botanist, not an accountant, so I may not understand something)
I'm not familiar with AirBnB but I'd guess there's no hotel tax being paid?
Assuming a $300 for utilities + HOA fees sounds believable
Re: I Bought An Apartment To Rent Out On Airbnb
#95Earlier quoted context omitted.
It's a bit sad that you have to explain this to grown up people.
I'm not sure that residential/commercial zoning laws in US states falls under the umbrella of general knowledge.
There's nothing US specific about zoning laws. They most probably preceded the founding of your silly colony.
Re: I Bought An Apartment To Rent Out On Airbnb
#96Exactly what is the difference between what this person is doing and running an unlicensed extended-stay hotel?
They're disrupting an obsolete industry.
Re: I Bought An Apartment To Rent Out On Airbnb
#97Good, concise write up with real numbers which is nice. But the woman who is doing all that cleaning and contact work for $200/month is the one making this possible (so it seems) and that could quickly eat up profits (though the ROI is great enough that there's lots of room there). EDIT: Also, is there currently an AirBnb manager market? Similar to the cleaner/manager he has, it would be great for people to invest re…
In a couple of the Airbnb places I stayed at, which had remote owners who I never saw, the manager was really just a minimum-wage sort of person who met me, oriented me, and periodically came in to do some light cleaning (I was a long-term (months) tenant). In Berlin, one of the guys had the gig as a "mini-job", and seemed quite unhappy when I tried to do any of the housekeeping myself - it was taking EUR out of his pocket by cutting his hours. I would think that it would be very easy, and cheap, to find assistants like this in the States who were not licensed PMs but were just plain folks.
Re: I Bought An Apartment To Rent Out On Airbnb
#98Just buy houses in Flint or some other lowly rust-belt city. Buy the property for $5,000, fix it up a little (wait to see why) and then find a renter for $700/month. If you're lucky they'll be section 8 so you don't really even have to worry about them skipping out on the rent.
Worst case you spend a few months evicting them and then spend a couple grand fixing it up after the house is completely trashed from piles of trash and holes in the walls and urine and feces in the floors. Then the next family moves in and the cycle repeats.
Re: I Bought An Apartment To Rent Out On Airbnb
#99That's messed up for the neighbors. Please don't do this.
I don't want to come across as being facetious, but why? At least in my building, there's a large percentage of neighbors who I don't know at all - whether they were renting via Airbnb or owners of their condo, it doesn't make a huge difference to me.
Because people don't behave in a hotel as they do at home - they're on holiday after all, so they might come back late drunk, they might want to party, they might make a mess in the hallway. Different people, every night. An unlike an owner, they could be anyone, or bring anyone with them. Basically, you are externalizing all the downside onto your neighbours, while pocketing the upside. It is no surprise that AirBnB started in America.
Re: I Bought An Apartment To Rent Out On Airbnb
#100Earlier quoted context omitted.
You must be kidding! This is "disruption" we're talking about, after all. That means all precautions, regulations, contingencies, licensing, and everything else are out the window , full stop. What are you, some kind of last-century luddite who hates progress? What do you want, for the bad old pre-startup ways to contaminate things and spoil the party? "Insurance" is for non-entrepreneurial losers, and no one cases a…
The only way to buy insurance would be to lie and commit fraud. Home owners associations also require insurance.
>The only way to buy insurance would be to lie and commit fraud.
I'm sure that's what's happening, probably unintentionally. And you're okay, until a crime is committed, someone is hurt, damages are done or the place burns down. Then the insurance company says, "Oh, you were renting it out? Good luck!"