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I Bought An Apartment To Rent Out On Airbnb

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Re: I Bought An Apartment To Rent Out On Airbnb

#101

Post by andrewfong »

glaugh wrote: post #61
rll wrote: post #13

If enough people do this it will be the end of Airbnb. This is one of the patterns the state of NY is using against Airbnb while Airbnb is arguing that the service is intended for people occasionally renting out their primary residence. If the state is able to prove a significant number of people used this model Airbnb is done in NY and I fear other states will follow.

I would imagine Airbnb could at some point cap the number of nights you could let a place out, right? Certainly not ideal from their standpoint, of course, but manageable?

It also prevents a legal and valid use-case -- renting out your couch every night of the the year. So long as you still live in the place yourself full-time, this isn't illegal under most municipal codes.

Re: I Bought An Apartment To Rent Out On Airbnb

#102

Post by [deleted] »

_pmf_ wrote: post #62
rll wrote: post #45

Earlier quoted context omitted.

There are a number of reasons. Most states have laws regarding how temporary rental properties (otherwise known as hotels) are zoned. You can't suddenly turn a building zoned for residential use into a hotel without getting it re-zoned. Also, NY specifically worries that it will change the local housing market. If investors buy up enough local properties and turn them into mini hotels, locals may be priced out of the…

It's a bit sad that you have to explain this to grown up people.

[deleted]

Re: I Bought An Apartment To Rent Out On Airbnb

#103

Post by feverishaaron »

rll wrote: post #13

If enough people do this it will be the end of Airbnb. This is one of the patterns the state of NY is using against Airbnb while Airbnb is arguing that the service is intended for people occasionally renting out their primary residence. If the state is able to prove a significant number of people used this model Airbnb is done in NY and I fear other states will follow.

How is this any different than VRBO, or any of the other vacation rental middlemen out there?

Re: I Bought An Apartment To Rent Out On Airbnb

#104

Post by fnordfnordfnord »

petercooper wrote: post #76
objclxt wrote: post #17

Earlier quoted context omitted.

Yes, I think the OP is rather mis-informed. There are plenty of places in the UK where you can get a one bed apartment for between £50-70k and not get a 'brick through the window'. Are these places you're likely to be able to rent out to full capacity on AirBNB? That's a different question.

I said "a house for under $100K" not a one bed flat. The one bed flat comparison was in my first paragraph. Where in the UK are you going to pick up a (small) house in a non-rough area of a city for ~£61k? Let alone the equivalent of Las Vegas.. (don't say Blackpool!) As someone who owns property in the UK, has lived in numerous areas of it, and is actively looking for somewhere new to live, I hope I'm not too misinf…

> the equivalent of Las Vegas..

Are you referring to the glut of available real estate, or the tourist attraction? Or is there some other thing that makes Las Vegas special?

Re: I Bought An Apartment To Rent Out On Airbnb

#106

Post by RockyMcNuts »

rubyrescue wrote: post #8

That's roughly a 25% annual return. nice. We're renting out our place in Buenos Aires. We're clearing 10% return and I use it when I go back there to meet with the team. Stays about 80% -90% full, great location. Guests love it. My wife (who doesn't work full time) manages it remotely. It's been a very positive experience and my takeaways are similar to the writer's. It's not passive income, but it's steady...

also significant labor invested and ongoing to make $13,608 per year (not passive, as you note), transaction costs if you want to sell it, not risk free (although not necessarily much riskier than say the S&P) .

Re: I Bought An Apartment To Rent Out On Airbnb

#107

Post by scott_karana »

feverishaaron wrote: post #103
rll wrote: post #13

If enough people do this it will be the end of Airbnb. This is one of the patterns the state of NY is using against Airbnb while Airbnb is arguing that the service is intended for people occasionally renting out their primary residence. If the state is able to prove a significant number of people used this model Airbnb is done in NY and I fear other states will follow.

How is this any different than VRBO, or any of the other vacation rental middlemen out there?

I suspect the difference (at least in the case of NY) is lack of regulation and kickbacks (sorry, taxes) for the local government.

Re: I Bought An Apartment To Rent Out On Airbnb

#108

Post by mbreese »

If anyone is interested, this looks like the link to the place:

https://www.airbnb.com/rooms/643721

Another thing to add to the "if you're thinking of doing this" list - don't write a post about it where you and the location can be identified. This is probably against the HOA agreement (short term leases are prohibited).

It also could be a safety issue if you aren't actually living there. Once someone knows the apartment number, someone could see when a particular place isn't going to be occupied and use that to their (ahem) advantage.

Seriously kids - don't do this. You'll probably be breaking a bunch of contracts and a fair number of hotel and zoning laws. Not to mention the insurance and liability issues that aren't even remotely discussed in the post.

Re: I Bought An Apartment To Rent Out On Airbnb

#109

Post by whyenot »

mcpherrinm wrote: post #94
whyenot wrote: post #86

Average 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

I just had a look at his listing on AirBNB and he charges a $35 cleaning fee. That also shifts the numbers into the more believable range.

Re: I Bought An Apartment To Rent Out On Airbnb

#110

Post by larrys »

andrewfong wrote: post #101
glaugh wrote: post #61

Earlier quoted context omitted.

I would imagine Airbnb could at some point cap the number of nights you could let a place out, right? Certainly not ideal from their standpoint, of course, but manageable?

It also prevents a legal and valid use-case -- renting out your couch every night of the the year. So long as you still live in the place yourself full-time, this isn't illegal under most municipal codes.

"So long as you still live in the place yourself "

A way to game this might be to:

1) Buy a place

2) Rent out 1 room full time to someone who agrees to #3 in exchange for below market rent.

3) Rent out the other room or rooms.

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