Just wondering how many of you would turn an 1/1 ~400sqft SF into an Airbnb rental over a longer term tenant. It's an ADU (garage that was recently converted) so everything is new. Is Airbnb in high demand in 90041 (Eagle Rock) zip code area? Looking to see people's experience with Airbnb demand in Eagle Rock.
I searched Airbnb and only found a few 1/1 places for ~$90/night for Aug/Sept.
Craigslist had 1/1 apt listings for ~$1500/mo.
What are the 1/1 square feet's renting for 1500? And if you rent via air bnb for 16 days you are hitting the same rent, rent for anything more and you are benefiting from air bnb (Keep in mind if you clean it yourself you could potentially be making an extra 60+ per check out. But also it's more Maitenance..so then we get into the question of what kind of investor you want to be and how active. ER is also rent control so that's another subject to consider as well if you have someone in there for a lease / over 30 days. As it's an ADU You are also likely sharing water.
Are you closer to Colorado or York? And maybe you are close proximity to the college and can have a college student be your renter. Lots of options but you will need to consider you’re stance on your preference of long term lease landlord or short term lease landlord.
Sorry if that’s not all organized but hope it helps a little
@Cara Tan Just my 2 cents, but I'd suggest long term rental for ER. There are many downsides to STR that aren't mentioned too often. There's more wear and tear on the property, home needs constant upkeep or you'll notice the reviews drop. Cash flow will be more seasonal. If you use Airbnb or Homeaway, a good chunk of the rental goes to fees.
Yes, there's the chance you may make more than $1500 on good months, but there are months that will be slower and you'll find it averages out in the end.
@David Yang thank you for those reminders!
I was on the fence about going the Airbnb route because you'd have to buy furniture, decorate, etc and definitely a lot more upkeep and wasn't sure if it was worth it due to location of ER, which is more of a family-oriented neighborhood. Wasn't sure if the proximity to Glendale, Pasadena or HP was enough pull to get consistent bookings. I also wasn't getting strong vibes from looking up ER rentals on Airbnb either which lead me to ask the community here.
@Nabil Suleiman I've done long term rentals in the past (not in ER though) so I have experience with long term tenants... just never dived into Airbnb and thought this might be a good opportunity to try/learn something new (add an extra skillset to my tool belt) if the demand justified it. I'm still a fairly young(er) investor so I don't mind being more on the active side. Was just wondering if there's enough demand for Airbnb in ER to justify the initial costs.
@Cara Tan . No experience in the LA area but I had a friend tha was looking into arbitrage and sent me this....
I know this unit is on your resident property so you may be ok (for now) but consider the cost of furnishing ($3-5k to make a 1/1 stand out) and the fact that if they get stricter you'll be stuck with it all.
Check out Airdna.co for a good estimate of occupancy in your area and go from there. STR is a lotnof work so if you're not making substantially more than LTR I would pass (this from a guy with 11 units)
@Justin Ellis thanks a bunch!!! That pretty much answered my question. Don't want to deal w/ LA regulation when profit from Airbnb is starting to seem not worth it compared to longer term rental.
WARNING! There is a new ordinance / law this is putting AirBnb owners out of business in Los Angeles. DO YOUR HOMEWORK! I just took a listing for an owner who was running Airbnb and it is no longer allowed after October 31st. Check into this!
@Justin Ellis has it right. Glad you got your answers...