Airbnb or lease to Tennant's?

Question

Hi, I have a sfh that I was originally thinking of flipping because the numbers are strong but I was also thinking of keeping long term to rent out and make a steady cash flow. I never really thought I'd like the idea of airbnb, but this properties in a spot that might be good for it. I had a few questions about airbnb:

How much % do they take from your income on it?

How many days a month do you plan to actually have it occupied? I'm thinking 15days a month?

What do you provide to your clients that rent it?

I'm more so leaning towards renting it to Tennant's than airbnb but I'd like input from investors who've done Airbnb before. Thanks.

Ryan Riches · Answer

@George W. We have several AirBnb units here in Colorado Springs! We have had great cashflow so far, but our market is seasonal, so I am expecting things to slow down come winter. I am not sure what the STR market is like in your area, but typically you can get higher cashflow than on an LTR but it’s also a bit more risk, and more work to be sure.

AirBnb only takes 2%, and in some areas they withhold  state occupancy taxes. If you are thinking about doing AirBnb, think about your latest hotel experience, and then getting your property as close to that as possible. You will want the property to be not only furnished, but for it to be clean and stylish - to stand out from the other listings. Once you get it staged, photographed and listed, you will handling guest interaction and cleanings, unless these are things you contact out.

In our market and with our goals, we have loved AirBnb for our properties and have even started managing for other people. Shoot me a message, I would be happy to analyze your market and share more of our experience.