Who else is running an AirBnb property?

[txjustin]

This is great info, I have rental property, but looking at dipping the toes in the STR market near home. Under contract on a place (condo) that has multiple STR’s in it. It is nice and clean and in a killer location which is why we are even looking. But definitely seems like a learning curve

Better check the occupancy level on those in the same area. It’s become highly saturated


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[YellCoAR]

I have to confess I refuse to use AirB&B or Virbo. They advertise for $100.00 a night. That seems like a good deal. Then they add all the extra fees. Some charge what seems a lot. When we used one in Alaska The cleaning fee was $150.00, service fee of $100.00 and a $1,500.00 up front deposit. The place was ok for the 3 nights we stayed, but the owner was not getting his moneys worth on the cleaning. It had cob webs and you could tell who ever did the cleaning did a half ass job.

 

[bojangles808]

No I have morals

 

[ewade07]

No I have morals

Im not sure i understand your comment....

 

[Hnthrdr]

Better check the occupancy level on those in the same area. It’s become highly saturated


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For sure, we have done quite a bit of homework, since it’s my home town I have a petty fair pulse at what is going on. very little lodging options, not a ton of str’s yes some units in the same building and only allowed since it is a mixed use space but definitely room in the market. I’d be lying if I wasn’t worried a little about over saturation but annual ROI will be 8-10 conservatively with potential to hit 20% excluding any added benefit of debt payment or appreciation

 

[Bachto]

I work in property management for living. We don't do STR's and as a person in the rental world I probably never would. More and more cities and HOA's are banning them. Also, the hassle factor for me doesn't seem worth it, but to each their own. In my area I have had more and more people who have STR's coming to me to transition them into long term as they aren't as profitable as they were a few years ago.

I would consider having an Airbnb if I owned one in a popular vacation area. That is where they seem to do the best from what I have seen and heard.

 

[bojangles808]

Im not sure i understand your comment....

it ruins communities

 

[DmrbigEshotT]

Air Bnb/VRBO’s are ruining what were once quiet, affordable areas in northern Michigan.


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[grossklw]

Ah yes the ole ruining communities argument. My cabin is a 4000 square foot house directly on Lake Superior, would this have been better served as a nice little starter home for a couple in a community that literally depends on tourism to survive?

In 2023 I’ve spent 140k on mine in the form of a full renovation and operating costs using a local supplier, local contractor, local cleaner, local handymen, and local landscaper. I wonder if all of these people I work with consider people like me to be ruining their community. Not to mention the local businesses that benefit from people staying at my rental going out to eat, fishing, hunting, kayak tours etc.

If someone is setting up shop in a residential neighborhood I could maybe see that, but you could also just have a permanent jackass for a neighbor instead of an occasional problem guest. I’d never buy in a non-tourist area but some people do make it work somehow, my guess is the people swimming naked will be exposed in the next year or two and the STR craze will settle down some.

It’s capitalism at its finest, I’m providing a service people are willing to pay for.

 

[Hnthrdr]

it ruins communities

I sort of agree, but also as a younger guy from a state where it has jacked up a lot of real estate. It is hard to have watched big businesses and out of staters plunder and get to keep the spoils ( lots of places grandfathered in stuff) that now once I’m in a position to profit from it I’m supposed to take the high road? Nope. Now I hate how developed everything has become but if I can take advantage of a place that is already developed, I’m going to. It is a get in a game or get left in the dust type scenario out here.

 

[sasquatch]

It won’t be long and just about nobody will own a house.

Everything will be rented, and people will love it


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[Fartrell Cluggins]

For those STR property owners that aren't using VRBO and AirB&B, how are renters finding you?

 

[txjustin]

For sure, we have done quite a bit of homework, since it’s my home town I have a petty fair pulse at what is going on. very little lodging options, not a ton of str’s yes some units in the same building and only allowed since it is a mixed use space but definitely room in the market. I’d be lying if I wasn’t worried a little about over saturation but annual ROI will be 8-10 conservatively with potential to hit 20% excluding any added benefit of debt payment or appreciation

Is that ROI with you managing it?


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[Hnthrdr]

Is that ROI with you managing it?


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Yes that will be with me managing it. My career gives me plenty of time to do it and being 10 min from the property is not an issue. I have a great cleaner lined up who cleans for about 1/2 the current cleaning costs of all other properties

 

[ColoradoV]

My wife and I do…

Works great in our small town for the summer full almost every night but we are a block from the main tourist street. We allow dogs that helps keep it full.

Long term rent it to a friends snowmobile guides all winter fills in the slower season.

Covers the mortgage for both our restaurant and property in the summer then runs flush in the winter. If things keep ticking along we will be at 0 debt w in the next 5 or so years.

 

[ewade07]

Figured I would bump this up top to see how everyone who has responded to this thread who owns and operates a STR is doing. It has been a little over a year from when my wife and I started our and it is doing well, at least in our eyes. We are getting enough cash flow to pay the mortgages for both our houses, which is all we were really shooting for.

 

[Turkeygetpwnd38]

I’m about to. The property is adjacent to mine and is technically unincorporated, along with my house and about 8 others, so no room for growth to “destroy” the community. The city and HOAs all around do not allow STRs so figured it would be a unique and desirable location, within 30 minutes of 3 top beaches.
I honestly just wanted the property and no new neighbors, figured this way I could control who goes in and when while paying off expenses. Will see how it goes!

 

[william schmaltz]

Thanks for following up. I just sent info on a 5 acre piece of land to my wife this morning. We have a recreational area exploding and there is nowhere to build hotels in the area.

Our friends went the route of doing a 5 night minimum. They have no problems getting a couple groups a month. Even if it’s 3 groups doing a total of 15 nights over two months, it easily pays for 4 months of expenses and repairs. And it allows them to work the cleaning into their schedule instead of cleaning 8 times a month. Seems like a good route to go.

 

[ewade07]

Thanks for following up. I just sent info on a 5 acre piece of land to my wife this morning. We have a recreational area exploding and there is nowhere to build hotels in the area.

Our friends went the route of doing a 5 night minimum. They have no problems getting a couple groups a month. Even if it’s 3 groups doing a total of 15 nights over two months, it easily pays for 4 months of expenses and repairs. And it allows them to work the cleaning into their schedule instead of cleaning 8 times a month. Seems like a good route to go.

The vast majority of our bookings are 3 nights or less, most people are only in town for the weekend or small things. Billings MT definitely isn't a vacation destination! We were using a cleaner to start but due to the fact they were not always doing their job my wife and I clean whenever we can and only use the cleaners when we absolutely have to. Its an hour of our time and saves us 70$, plus we know it is being done correctly.

 

[grossklw]

My revenue for 24 is on pace with 23 in Alaska and up significantly for peak season on Lake Superior. Alaska I think I’ll end up with about 10 open nights from mid May to early September between my 2 houses. My Lake Superior house will end up with 2 open nights for peak season and we’re heading up to stay for 5 days as well.

I saw later bookings this year for Alaska, but I’ve got a good start on next year already in both locations. My big lake house still books for pretty high rates in September and October for fall leaf viewing.

I have been seeing some horror stories with bookings dropping off a cliff in some of the more popular areas like the smokies and the FL panhandle.