If you are searching for the pros and cons of renting your home on Airbnb, you are probably thinking of becoming an Airbnb host. Well, in this article we will try and help you figure out if it is a good idea.
We will cover a few things you need to have in mind before making a final decision. So let’s start.
The first and most obvious pro is the income you will end up earning from your rental property. In the US, the average Airbnb host earns around $10 000 per year. This however depends on many factors, location being the most important.
In tourist hot spots such as New Orleans, Orlando and Austin, the hosts can earn an annual income of $ 50 000 to $ 75 000.
However, this income is not stable nor predictable. You can be fully booked for one month and have zero guests for the next one. So, the con associated with having an Airbnb as a source of income is the fluctuation you may experience.
There are many expenses that come with having an Airbnb. For instance, you will have utility bills that may be higher than usual since guests don’t really care how much electricity they use.
You will also have cleaning expenses if you are not willing to do it on your own. You will need to do maintenance and fix anything that is not in perfect condition. Plus, if your place is not in tip top shape, you will probably need to do some renovations even before you open for business.
If you are on a tight budget but you want to improve your property, you can always apply for Airbnb financing. There are many online lenders that provide loans or lines of credit for this purpose. If you want to take a look at ratings and reviews of online lenders that offer Airbnb financing, please visit FinImpact.
You may think that being an Airbnb host is an easy job that brings you passive income. Well, we regret to inform you that it is a hard job and it is definitely not passive.
There are many tasks that fall under the description of an Airbnb host. First of all, you need to be constantly available so potential clients can contact you even before booking. You will probably get many messages that you need to respond to right away.
But the work does not stop there, even when you have guests, they are likely to contact you and ask questions.
After they leave, you to need to do the cleaning, maintenance, washing, and organizing of the place. It is a lot of work after all, which can be considered a con. However, you can always hire someone to help you out.
Oh yes! Rules, regulations, and bureaucracy who does not love those? You may be surprised but becoming a host comes with a few legal and regulatory hurdles. Each city has regulations in place in regard to city zoning and administrative codes. In some cities such as Los Angeles, Las Vegas and Santa Monica, it is even illegal to have an Airbnb. So applying for permits, and going to different offices to get all the paperwork is definitely a con.
Although Airbnb is a great opportunity to get additional income, it is not per se a walk in the park. There are a lot of things that go into having a rental property for a short term stay. If you are willing to do the work and overcome all the challenges that go with it, you should go ahead with this new business venture.