Starting a AirBnb in Rhode Island any tips?

Question

Morning BP,

I am investing in an Airbnb with my brother. I was wondering how should structure this and what should I watch out for moving forward?

Thanks everyone.

Nicholas DeCristofaro · Answer

Semper Fi!,

Where would you be purchasing the Airbnb property? Some places require you to file for an STR permit and pay an annual fee.  Also, who would be managing, checking in Airbnb users and cleaning the property when people check out.  I am currently in the closing process of a property that I myself will be renting on Airbnb.  I made it a point to talk to several cleaning companies and other maintenance companies (Landscaping, Snow service) and get quotes so that as soon as I close on the property I can put it right back on Airbnb and not miss any possible income due to not being prepared.  Also, will you be rehabbing the property?

Joseph ODonovan · Answer

@Andrew Pettit 1. Check with your city/township to see what they require for a STR. 2. Inform your Insurance carrier that you are renting this out as a STR. Your premium will go up compared to a LTR but the proper coverage is well worth it. 3. Find a very responsible cleaning service as turnovers may be frequent. A clean unit is absolutely critical when it comes to Airbnb ratings. 4. Speaking of ratings, you should absolutely shoot for Superhost status on Airbnb as it gets you higher rankings in their search feature. 5. Strap yourself in as a STR is not a passive investment.  6. Consider hiring an Airbnb Hosting Co in your area. Best of luck!

Andrew Pettit · Answer

Morning everyone,

Thanks for the responses. My brother's wife will manage the Airbnb, she has a property management business herself. My brothers' construction business will be building the garage and the Airbnb will be on the second floor. I am going to be just the 'investor,' because I am still on active duty.

John Underwood · Answer

If this is your only STR and you have a mortgage you don't need to worry about this.

Having a mortgage and correct commercial insurance will be your first and second line of defense.

Starting a AirBnb in Rhode Island any tips?

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