Author Topic: AirBnb potential project - Facepunches requested  (Read 5304 times)

dantownehall

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AirBnb potential project - Facepunches requested
« on: November 18, 2013, 02:02:48 PM »
I just bought a house (~3 months ago) in beautiful Asheville, NC.  It's an 1100 square foot 2 bedroom 1 bath, mortgage is $700/month - just right for my current situation.

Now it gets interesting... the house also has a full, unfinished basement, also 1100 square feet (obviously not included in the above figure!).  Currently, it's only used for storing tools and kayaks and things, as well as the washer and dryer.

My idea is to spend some cash to create a nice little bedroom/bath suite down there, and rent it out using Airbnb.  It's already preplumbed for a bathroom, and it has its own door to the outside (I could easily change the lock, and then I could have guests there without them even needing to enter my house).  I would be able to do all the work myself (with the possible exception of electric), or with friends' help.

Asheville is a pretty wonderful tourist destination (mountains, hiking, mountain biking, Blue Ridge Parkway, whitewater, arts, etc.) so I would imagine there's a pretty good market here.

Does anyone have any experience doing something like this?  I'd love to hear any comments/criticism for this plan/ideas on how much to charge, what features to include in the remodel, etc.

Thanks!

-Dan

olivia

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Re: AirBnb potential project - Facepunches requested
« Reply #1 on: November 18, 2013, 02:07:12 PM »
Is there any reason why you wouldn't want to make the basement a rental property and rent it out to a full time tenant on an annual lease?  Unless you live in a super hot area for Airbnb it seems like that would probably make you more money.

Regarding Airbnb, do you live in a walkable area?  Do you know if most people who visit Asheville rent cars or do they prefer to walk around the city?  I'm not super familiar with Asheville, so that may be totally off the mark, but it seems like Airbnb does well mostly in cities.  Have you checked out the Airbnb website for your area to see the other places available in your area, what others are charging, etc.?


zhelud

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Re: AirBnb potential project - Facepunches requested
« Reply #2 on: November 18, 2013, 02:30:44 PM »
Have you checked into whether owning an apartment in your home that you use specifically for short-term rentals makes you technically a hotel owner, subject to your jurisdiction's associated taxes and regulations?  I guess I would want to know this first...

StarryC

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Re: AirBnb potential project - Facepunches requested
« Reply #3 on: November 18, 2013, 03:00:22 PM »
I would go onto AirBNB and VRBO and see what the rates are for similar properties in similar or the same neighborhood.  I would also attempt to "guess" at what the vacancy rates are: If you look in the next 2 weeks, could you find a place or not?  If things aren't getting booked far in advance, then there is probably a pretty high vacancy rate.

If you do this, you will need to pay to furnish the space.  If you rent it out full time, the renter would probably bring their own furniture that wouldn't be replaced due to damage or wear and tear at your expense. Also, you would have to clean up after/ do the laundry of sheets and towels for AirBNB/VRBO renters, but not a long term renter.  Do you want that work?  You'd also have to constantly negotiate and communicate with potential renters.

scrubbyfish

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Re: AirBnb potential project - Facepunches requested
« Reply #4 on: November 18, 2013, 06:08:40 PM »
Assuming you could get people in, and you enjoy people, I would go for it.

I was a landlord and, while it helped me out financially, I would not choose to do it again because of the landlord/tenant laws where I live. (I play by the book, and tenancy laws in BC leave a landlord without quick recourse when challenges arise. This can prove very expensive.)

I have a friend who offers an AirBnB unit and he loves doing it -he makes very good money with it and meets new and interesting people regularly, yet has his place to himself most of the time. For all of these reasons, he loves it! Some people have had horrific experiences renting out through AirBnB (you can Google to find some stories), but in all the cases I've heard about, the owner was away. With you present upstairs, you still have privacy yet are most likely to attract only the many awesome guests and none of the (very few) criminals. And yes, the vast majority of guests prove utterly wonderful! I just like the extra protection you have built into your situation -nice!

expatartist

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Re: AirBnb potential project - Facepunches requested
« Reply #5 on: November 18, 2013, 06:09:22 PM »
I've been using Air BnB for a year for a property and have been very happy w/them. But this is in an area where the local rental market is very slow. Summer's peak tourist season brings in a lot more cash than the local market.

You might find this guy's strategy interesting, he bought a house in Vegas with the express purpose of renting it on Air BnB: http://needwant.com/p/buying-apartment-airbnb/

arebelspy

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Re: AirBnb potential project - Facepunches requested
« Reply #6 on: November 18, 2013, 06:13:36 PM »
I've been using Air BnB for a year for a property and have been very happy w/them. But this is in an area where the local rental market is very slow. Summer's peak tourist season brings in a lot more cash than the local market.

You might find this guy's strategy interesting, he bought a house in Vegas with the express purpose of renting it on Air BnB: http://needwant.com/p/buying-apartment-airbnb/

Lots of questions were raised about that article, including how legit it was (not only legally, but if it even happened at all).  I wouldn't advise that strategy, personally.  A long distance short term rental with only a cleaning person to manage is... risky, to say the least.
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expatartist

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Re: AirBnb potential project - Facepunches requested
« Reply #7 on: November 18, 2013, 07:27:05 PM »
Quote
how legit it was (not only legally, but if it even happened at all)

Good point, Air BnB currently falls into a grey area, and is outright illegal in some regions (including I think NYC and soon in Spain and possibly Berlin). It's another case where laws haven't yet caught up with tech, but it's probably just a matter of time.

The estate agency from which I bought my apartment manages it for next to nothing. It's an unusual situation because travelers who stay at my studio bring a lot to a small town, and PR for the agency. I have however factored in rental taxes to my calculations, and will for our next properties in the region.

The OP's situation sounds a bit more hands-on - it's in his own home, etc, so Air BnB could be a good choice for him.

arebelspy

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Re: AirBnb potential project - Facepunches requested
« Reply #8 on: November 18, 2013, 08:44:42 PM »
The OP's situation sounds a bit more hands-on - it's in his own home, etc, so Air BnB could be a good choice for him.

Agreed.  Though I'm with the person who suggested it be rented full time to someone.  Much less hassle, can choose some you're compatible with, etc.

But Air B&B can work too if that's your thing.
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
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PilotsWife

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Re: AirBnb potential project - Facepunches requested
« Reply #9 on: November 18, 2013, 10:58:05 PM »
Could the OP rent out the basement if there's no kitchen, only the bedroom & bathroom. That sounds like somewhere I wouldn't be interested in renting, but would be just fine for airbnb.

OP, if you do choose to go the Airbnb route, consider buying a second-hand mini fridge, electric kettle, microwave, etc. Being able to "cook" at home & not eat out 100% of the time is the biggest draw of renting a place vs staying at a hotel, at least for me.

Good luck with whichever decision you make.

dantownehall

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Re: AirBnb potential project - Facepunches requested
« Reply #10 on: November 19, 2013, 07:23:07 AM »
Thanks for all the input, guys!

I will definitely start to look into what otherpeople are doing/how much they are charging.  I don't think the renovations would cost too much, and I'd enjoy the work.

The potential legal hassles are a little more worrisome.  I don't really want to get engtangled in being (legally) a hotel, or anything like that.  I'll have to look into local regulations there.

The main reason I wouldn't rent it out as a full-year kind of thing is the lack of a kitchen, and lack of a desire to add one.  I figure I could get away with this as an AirBnB kind of thing, by adding a mini-fridge and a microwave like Pilotswife said, but it's a pretty small house to have two full kitchens in.

I would probably mainly be targeting young hip couples looking for a weekend getaway in the mountains for cheap; I feel like most people using this would be eating out anyway.

I also like the AriBnB idea because it's easy to shut down for a while if I don't want to run it.  The basement room would also be great for visiting guests and such when it's not occupied.  I do probably need to talk to a real estate person and find out how much/little value another bedroom and bath would add to the house.  It's in a good school district, so it's possible (if I ever want to sell it/ rent it out) that space for another kid would be a plus.