Has anyone listed their rental property on Air BnB?

Question

Hi there! I was just wondering how you Airbnb hosts fair and how it works. I have a 3 bedroom home in a great area and close to everything in Durham NC that I am thinking of either renting on Airbnb. Just wondering how it compares to getting a tenant and what your experiences and profits have been like, in comparison to a lease. Are the income estimates on Airbnb accurate? I also am not sure if that is before expenses or after as it does not state. Any input you could provide would be greatly appreciated. Thank you!

Joe Splitrock · Answer

You will make way more money on STR if the location is desirable for travelers. The "is it worth it" question is subjective. We have a house that is a short term rental. For August we have $3000 net income after we pay cleaners. We have about $250 worth of utilities and expenses that we wouldn't have in a LTR, so net out $2750. By comparison I could do LTR at $1200 per month. From a time commitment standpoint, our STR requires constant attention. Our LTR are so hands off that you can almost forget you even own a property. We have also used furnished finder for MTR (medium term rental) and the property gets about $1500 per month. That is also hands-off.

In the end, I prefer LTR rental because it is scalable with less ongoing work, but my goal is less time invested. If my goal was more income and I didn't care about my time, then STR is a winner. I think starting out if you only do STR, then it is easier. After 15 years of LTR and a hands off business, it is harder to get excited about STR.

John Underwood · Answer

You can typically make 3x to 4x more on STR than LTR. It is more work but in my opinion it is worth it.

I also make way more money on Vrbo than Airbnb. This may be market dependent.

Patricia Taveras · Answer

@Chris L.

Hi Chris. I have 3 three bed two bath homes on Airbnb in New Bern. They are absolutely killing it. I just got financial reports from my bookkeeper a few days ago, and so far in 2021 I'm averaging $1,000 net a month between my current 5 properties - two long term rental mobile homes and these 3 Airbnb's. I just surpassed my W2 income. The Airbnb's have done better than I projected when I bought them. I am so grateful to Bigger Pockets for teaching me almost everything I know about analyzing and purchasing real estate and to a book and podcast called Get Paid for Your Pad for teaching me most of what I do in my Airbnb business. If you have any specific questions about getting started please feel free to reach out. The decision to do Airbnb has been life changing for me. Good luck!

Bruce Woodruff · Answer

We have 2 STRs and find them to do as John says, about 3x -5x more income than LTRs. It is more work short-term for sure, but I find that long term, they are less work, because you are in there fussing over them once or twice a week in most cases and that does not allow those pesky little problems to rear their ugly heads like I've seen happen in a LTR. So to me, they are a highly preferable RE investment....

YMMV

Bonnie Johnson · Answer

I agree with Joe. We have a MTR in Las Vegas, requiring a minimum 30 day stay, and a STR in Tennessee and Big Bear, CA. There are way less repairs in the MTR, and a more respectful clientele. It depends on your market, and what you are trying to accomplish. If you don't mind micromanaging, and don't mind damage to the home, then a STR is great for income. If you would like to be more hands off, and its a higher end property, I would lean towards MTR, and LTR.

Nathan Gesner · Answer

I moved your question to the Short-Term and Vacation Rental forum where it will have a better chance of getting a response.

Has anyone listed their rental property on Air BnB?

Has anyone listed their rental property on Air BnB?

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