Releasing tenant to put the house on AirB&B

Rental Property Investor · York Pa · Member since 2023 · 18 posts · 14 votes

Current tenant signed a one year rental lease on the single family property I own. I feel like I can create more cash flow by putting the house on AirB&B after the lease agreement runs out.
Any suggestions on what may be the best way to address this possibility to the tenant and is it even a good idea to release a loyal long term renter that has never paid late?

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Tony Ngo

San Gabriel Valley, CA · Member since 2022 · 26 posts · 9 votes

Quote from @Christopher Juntura:

Quote from @Elmer Wayne Fisher:

What are your goals?

Airbnb is a job, so you'll be pulled into doing more. Something that maybe something in the middle, midterm renting. Honestly everything really depends on your goals, so if you don't have them, then that's where you need to start.

I agreed with Christopher. Convert a long term rental to STR is like creating another new job for yourself. LTR is passive where STR is active & you need be involve in book questions, cleaning arrangement, etc (unless you hire management company). Before go into STR, be sure you locate good cleaning team. One more factor you need to consider is the furnitures. It will require some profit months to regroup back the expenses. Be sure to run the number to ensure it's profitable. STR is just another business. Business for each month has up and down. Good luck!

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Hamp Lee IIIPro Member
Real Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes
3y
Welcome to BiggerPockets!
1. Have you run the numbers on AirBnBs in your area to determine whether that would be a great strategy for you? Real estate is a numbers game...
2. If you decide to proceed, check your state laws and your lease agreement on providing notices to vacate. If they are a long-term renter, then you should provide as much notice as possible to prepare them for the move (in accordance with state laws). Consider that this is not only an opportunity for you to make more money for you, but leaving a long-term faithful tenant to find suitable housing elsewhere, probably with little notice.

3. Sometimes "a bird in the hand is worth two in the bush." There are those times when it's best to leave your investment "as is" and create a new one.
I wish you all the best.
2 Reply
Christopher Juntura
Member since 2022 · 32 posts · 6 votes
3y
Quote from @Elmer Wayne Fisher:

Current tenant signed a one year rental lease on the single family property I own. I feel like I can create more cash flow by putting the house on AirB&B after the lease agreement runs out.
Any suggestions on what may be the best way to address this possibility to the tenant and is it even a good idea to release a loyal long term renter that has never paid late?

What are your goals?
Airbnb is a job, so you'll be pulled into doing more. Something that maybe something in the middle, midterm renting. Honestly everything really depends on your goals, so if you don't have them, then that's where you need to start.
1 Reply
Elmer Wayne Fisher
OP
Rental Property Investor · York Pa · Member since 2023 · 18 posts · 14 votes
3y
Quote from @Christopher Juntura:

Quote from @Elmer Wayne Fisher:

Current tenant signed a one year rental lease on the single family property I own. I feel like I can create more cash flow by putting the house on AirB&B after the lease agreement runs out.
Any suggestions on what may be the best way to address this possibility to the tenant and is it even a good idea to release a loyal long term renter that has never paid late?

What are your goals?
Airbnb is a job, so you'll be pulled into doing more. Something that maybe something in the middle, midterm renting. Honestly everything really depends on your goals, so if you don't have them, then that's where you need to start.

Okay Thank you for your great advice.
0 Reply
Elmer Wayne Fisher
OP
Rental Property Investor · York Pa · Member since 2023 · 18 posts · 14 votes
3y
Thank you for the great advice!
0 Reply
Elmer Wayne Fisher
OP
Rental Property Investor · York Pa · Member since 2023 · 18 posts · 14 votes
3y
Quote from @Hamp Lee III:

Welcome to BiggerPockets!
1. Have you run the numbers on AirBnBs in your area to determine whether that would be a great strategy for you? Real estate is a numbers game...
2. If you decide to proceed, check your state laws and your lease agreement on providing notices to vacate. If they are a long-term renter, then you should provide as much notice as possible to prepare them for the move (in accordance with state laws). Consider that this is not only an opportunity for you to make more money for you, but leaving a long-term faithful tenant to find suitable housing elsewhere, probably with little notice.

3. Sometimes "a bird in the hand is worth two in the bush." There are those times when it's best to leave your investment "as is" and create a new one.
I wish you all the best.

0 Reply
Elmer Wayne Fisher
OP
Rental Property Investor · York Pa · Member since 2023 · 18 posts · 14 votes
3y
Thank you for you excellent advice!
0 Reply
Tony Ngo
San Gabriel Valley, CA · Member since 2022 · 26 posts · 9 votes
3y
Quote from @Christopher Juntura:

Quote from @Elmer Wayne Fisher:

Current tenant signed a one year rental lease on the single family property I own. I feel like I can create more cash flow by putting the house on AirB&B after the lease agreement runs out.
Any suggestions on what may be the best way to address this possibility to the tenant and is it even a good idea to release a loyal long term renter that has never paid late?

What are your goals?
Airbnb is a job, so you'll be pulled into doing more. Something that maybe something in the middle, midterm renting. Honestly everything really depends on your goals, so if you don't have them, then that's where you need to start.

I agreed with Christopher. Convert a long term rental to STR is like creating another new job for yourself. LTR is passive where STR is active & you need be involve in book questions, cleaning arrangement, etc (unless you hire management company). Before go into STR, be sure you locate good cleaning team. One more factor you need to consider is the furnitures. It will require some profit months to regroup back the expenses. Be sure to run the number to ensure it's profitable. STR is just another business. Business for each month has up and down. Good luck!
2 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Elmer Wayne Fisher:

If you decide to move forward, all you have to do is give the current renter sufficient notice so they can plan accordingly. Be honest and clear.
The DIY Landlord Book4.7243 Reviews
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1 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Tell them you will not be renewing the lease. Am I missing something?
0 Reply
Jacob Hornberger
Real Estate Agent · Tipp City, OH · Member since 2018 · 65 posts · 35 votes
3y
As others have said Airbnb will not be as passive as a long term rental. Run the numbers both ways and if you think its worth it to do Airbnb I would go for it but, make sure there is plenty of demand in your area. Also, check local laws to make sure its aloud. If you do go forward with the Airbnb idea, tell the current tenants with plenty of notice that you will not be renewing the lease.
0 Reply
Eric Greenberg
Investor · Philadelphia, PA · Member since 2019 · 618 posts · 430 votes
3y
Have you been keeping up with all thats going on in Philadelphia with STRs? If not I would do that research first.
1 Reply

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