With hotel costs continually rising, AirBnb, VRBO, etc are killing it too. So many people are wanting to take that step towards renting out their place via AirBnb rather than a steady annual lease--why? Because you make so much more gross income with AirBnb. Like up to 4 times as much in certain markets. But there's also a lot more costs and headaches involved in managing an AirBnb. Are you ready for the reality?
- You have to kit out the place (please hire a designer so that the place doesn't look like a college dorm) and furniture is getting more costly these days (Typically costs around 15k to kit out a small 1 bedroom, and this is if it's done on the very cheap--think appliances, bedding, towels, kitchenware, TV, WIFI, secure entry system, all the streaming subscriptions, )
- Wear and tear on the furniture and replacement costs
- Cleaning fees (please use a professional)
- Faster wear and tear on everything, from the HVAC to the plumbing to the fridge
- Potential hassle with neighbors who hate the constant flow of different parties
- Managing the guests (you have to cater, otherwise your reviews will suffer)
- Professional photography (ideally)
- Security issues (please use a secure locking service and ideally have some kind of security on the property)
- Liability
- Increase costs of home insurance
- You'll need a permit from the city
And check out the laws in your city/county about AirBnb restrictions. https://www.airbnb.com/help/article/864/los-angeles-ca
