Atlanta Airbnb experience and knowledge

18 Replies

Hello!

Does anyone have experience with operating an Airbnb around Metro Atlanta?

Would love to get some first hand knowledge about regulations, areas, real ROI's, property management recommendations, and anything you think will profile me to know.

I would like to start recommending this to my investors and needed to do that after I am an expert myself.

Thank you!!

Noa Guttman, Realtor®

Airdna.co offers pretty accurate info on occupation and demand. Worth looking into.
I was planning on doing STR in Atlanta last year, but regulation kinda scared me away. Would you say it got worse?

Thank you.
Dieggo Goncalves


Originally posted by @Noa Guttman :

Hello!

Does anyone have experience with operating an Airbnb around Metro Atlanta?

Would love to get some first hand knowledge about regulations, areas, real ROI's, property management recommendations, and anything you think will profile me to know.

I would like to start recommending this to my investors and needed to do that after I am an expert myself.

Thank you!!

Noa Guttman, Realtor®

Thank you Dieggo! 
Will definitely look into this tool....

And no, I think Atlanta is going to embrace the all Airbnb thing... They are talking about taking the law up to state and off of the local cities. Anyway, there are lots of cities that currently still has no regulations in the matter, and city of Atlanta doesn't really do anything (as far as I've heard) since there are ao many Airbnb's...

Best of luck!

Originally posted by @Noa Guttman :

Thank you Dieggo! 
Will definitely look into this tool....

And no, I think Atlanta is going to embrace the all Airbnb thing... They are talking about taking the law up to state and off of the local cities. Anyway, there are lots of cities that currently still has no regulations in the matter, and city of Atlanta doesn't really do anything (as far as I've heard) since there are ao many Airbnb's...

@Noa Guttman

State and local regulation is one thing.  Atlanta and Georgia as a whole are current very friendly to AirBnB/VRBO/etc as far as I know.

Income tax is another thing.  It would behoove both you and your investors to know that taxation is different for a long-term "vanilla" rental vs a rental in which substantial "hotel-like" services are offered.

Usually most AirBnB can avoid the substantial services, but it's good to check in with your tax CPA/EA before you pull the trigger.

I have some students in the Atlanta area and they are doing great by focusing on stays that are 30 days and longer. This puts them outside of the regulations that larger cities have been imposing. Focus on longer stay and you need not worry about regulations.

Is anyone familiar with the airbnb market around suntrust park (i.e. in and out of braves season)? If so, PM me! Of course, it’s going to be good for braves weekend home games, but one can’t rely 30-ish nights of the year.

Sam

Check out AIRDNA.CO
Great resource! 

Originally posted by @Sam Crochet :

Is anyone familiar with the airbnb market around suntrust park (i.e. in and out of braves season)? If so, PM me! Of course, it’s going to be good for braves weekend home games, but one can’t rely 30-ish nights of the year.

Sam

Smyrna is a good area for short term rentals - there's a ton more going on over there besides Suntrust Park - lots of high end everything in the Cumberland area.  I haven't done much AirBnB but do do short term home share rentals on a few of my properties with success.  I was fortunate to be mentored by someone who kind of pioneered home share rentals in the metro atlanta area. It's just a smarter way to rent.  

@Rick Johnson I looked into AirBnBs in Smyrna for a while - the houses shot up in price over the past couple of years since the stadium came up. Is there a certain part of the market you think would work best?

Looking at 3BR houses, you're looking at $200k+ and after expenses there's not a ton of profit left over.

I currently own a townhouse on the border of Midtown and Buckhead near Piedmont Hospital. I have been using the property as Airbnb for over a year now and aside from one reckless guest I haven't had any issues with them. 

On average I get between $100-$300 cash flow a month but it varies due to events and time of year. For example, the Super Bowl was extremely lucrative, as well as the hotter months. But that gain is offset by the rest of the year when the average daily price is lower. I've found that daily price is heavily dependent on location and time of year. So to alleviate that, I was sure to purchase a property in a location that would always be in high to moderate demand. So far I've been right in that analysis, but I bought the property WITH the intention of using it as an AirBnB. 

I think the two biggest factors you should consider are location and HOA. My HOA was an issue in the first few months because they felt I was violating our community guidance. I had to hire and attorney to arbitrate the issue on my behalf, but after that they let it go and I haven't had an issue since. Your HOA and its guidelines will be your biggest hurdle, so if you have not already purchased the property, you should be sure to review the guidelines thoroughly beforehand.

As far as location goes, keep in mind why and who is using AirBnB. Most, but not all, of my guests have been between 25-35 years old. The majority are coming for an event in the city and want to be close. You can get to most places with a $10 Uber from my place, and I know that is a big factor in the current success of the property. I would be wary of using a place too far out of the city for AirBnB. 

I hope this was helpful.

I have three Airbnb units (1 SFH and 1 duplex), working on another duplex, and have experienced good success in parts of town where homes are cheaper on the southside - still close in and relatively good areas so you can get a bigger home for the money. I avoid Vine City because I think the chances something bad will happen to a guest are too high - one shooting / car break in and your listing is trashed. I've found more beds and bedrooms = more money. Too much competition at the lower levels. I think the upper westside, Pittsburg neighborhood and Tech area are interesting areas for Airbnb, too. My cash flow has been pretty different than John's above - I make at least double the mortgages (15 yr, 3.5% conventional) every month in revenue and pay a little less than 10% in cleaning costs. Last year my first property made around $40K revenue on a $175K house. This year projecting closer to 60K on that property, with YoY growth around 100% in first 2 years (I'm in year 3).I self-manage the properties as of now so no other major expenses. Typical damage per month around $50-100.

Recommend to be sure to buy in an area where you can convert to LTR and cash flow well without issue, should legislation not go favorably. Also keep in mind guests don't know the areas of town in Atlanta either so they are blind when it comes to picking a "good" neighborhood. All signs point positive on the legislation, but you'd hate to be overleveraged and it go south. I also track the reasons why my guests come and stay with me, so I can better inform locations for future properties. That's led to the 2 duplexes. 

I should add that I'm considering converting mine (one or both) into long term rental. I think the thing to consider with Airbnb is how active you have to be. The numbers don't really work when you get a full, full-service company to manage it - I'm not sure it's worth the added damage and hassle for STR at that rate. I think it's inhibiting my growth how active I have to be in the management.

I think the real market is with the movie people for short-term rental. If you can get in there, that's the ticket.