what are the down falls to air bnb from those with experience of this type of real estate?
The seasons @Jamison Gallegos My places are booked solid in the summer, not much action in the winter. LL pays all utilities, which is different from 1yr leases. This year St. Louis government decided to re-class some properties as commercial, where short-term rentals were taking place. This was a surprise to us homeowners and a bite into our income. Then there was the orgy. One person booked but 11 spent the night, I found them in the morning. Be sure your House Rule Book warns guests that they will be charged $xxxx (make up something) if a party happens, smoking takes place or extra people spend the night. Without it, there is no extra charge for bad behavior.
How long have you been renting AirBNB? Do you use other platforms like VRBO?
@Jamison Gallegos vacation rentals cost more to get started and maintain. They take more time, effort, and money to operate.
My market has a strong - but short - tourist season. I've managed as many as 70 short-term rentals and 350 long-term rentals. In my market, a long-term rental produces more net income and requires less effort.
@Jamison Gallegos , I have the same issues as @Nathan G. . The tourist season is short, but heavily booked, the winter is long, rents are slow, and utilities are high. My first year I got started late I didn't make enough to pay utilities, the second year I made money but averaged about $200 a month less than if I had done a long term rental, this year was much much better as I added another unit I fixed up. I think it will be better than last year by quite a bit. It is a LOT more work with vacation rentals. I think the market is going to get much stronger however, the question will be how many jump into the STR market and drive down prices.
@Jamison Gallegos Regulations are another consideration. Even if your locale does not have any regulations restricting STRs now, they can implement regulations in the future.
My market is relatively strong throughout the year but I still find it easier to rent extended stay during the academic year and STR in the summer.