Rental Properties in Airbnb

8 Replies

I have a 3/2 home in the outskirts of winter park, fl. This home has a pool and a great view in the backyard and it is fully renovated from top to bottom and has marble floors. I had a terrible experience with my tenants so I am not renewing their lease that ends on October 31.

A. I am trying to decide weather I should rent it to someone else and cash flow $800/month. Already have someone interested that has a 40 lb dog.

B. Short term rent it on Airbnb. Already listed it on Airbnb and currently have bookings for 1 week (~$1,000) for the month of November, December, and February. Since I did not include furniture in the pictures I listed it at $20-30/night less than everyone else. In order for me to cash flow $800 I would have to book it for at least 3 weeks at the current rate.

I have until October 31 to decide. Which option do you recommend?

@Juan Vasquez So I understand your question: you already posted and listed it on Airbnb AND have confirmed reservations that you would cancel because you might change your mind and rent LT instead? And you’re asking this question on this forum now? 

To make it a vacation rental you will need to fully furnish it and switch over to a commercial insurance policy.

Is this capable of being a property families who would want to go on vacation at? If yes then you should be sucessful.

@Nancy Bachety That is exactly correct. These reservations are confirmed but it is only for 1 week. I’ll have to furnish it, take nice pictures, and risk more time without any income. As of right now I have it listed for $102/day and comps go up to $150 but I would eventually list it at $135 to stay competitive once I get reviews and have matured in this business a bit more.

@John Underwood i am fully aware of that and that would offset the price upwards a notch. This is definitely a home that families would want to vacation at but I am concerned about people traveling less due to covid and seasonal fluctuations in occupancy, paying the cleaning lady every time someone leaves, and the extra time I’ll have to put in to manage the property. How much more money is worth the hustle ? Once I reach the price per night I am trying to acheive I’ll have to book it for only 2 weeks to make the same as I would with a long term tenant but it will take time to get there.

Originally posted by @Juan Vasquez :

@John Underwood i am fully aware of that and that would offset the price upwards a notch. This is definitely a home that families would want to vacation at but I am concerned about people traveling less due to covid and seasonal fluctuations in occupancy, paying the cleaning lady every time someone leaves, and the extra time I’ll have to put in to manage the property. How much more money is worth the hustle ? Once I reach the price per night I am trying to acheive I’ll have to book it for only 2 weeks to make the same as I would with a long term tenant but it will take time to get there.

 To furnish a house will not be cheap. You can try and get some used furnishings to get the price down. The cleaning fee is an extra fee paid by the renter so that will not come out of your pocket.

I think it makes sense and cents to do it.

@Juan Vasquez , you missed the point of @Nancy Bachety , if you have already listed it for a week in each of 3 months and are still undecided if you are going to do a vacation rental you are highly unethical.  You entered into a contract that you apparently have no intention of following through with.  This is not some lark.  Someone is going to plan an escape from the grind of work and the doom and gloom of the pandemic.  They will have saved up money and vacation time to go to the south and enjoy themselves, only to find out the reservation they made is yanked out from under them and they have to either pay a lot more and break their budget, or settle for a fleabag hotel, or maybe even worse sleep in their car.  You could easily ruin their entire vacation.  You are not cut out for a vacation rental.  You really need to care about people and them enjoying themselves to do well.  You obviously have no concern for their welfare.  Cancel all reservations now, return the money, and rent it long term.

I have to say I totally agree with @Jerry W. . To be successful in STR you have to have a hospitality mindset. By taking reservations for a property you do not intend to fulfill indicates you are not prepared for the STR hosting business. I would continue to LTR or if the numbers pencil, partner with an experienced cohost that can provide the proper level of service guests deserve.