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Joe Luca, Full Time, Full Service - You Deserve It (RE/MAX Preferred)

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Rainmaker
1,052,211
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

The first thing is make sure you're not breaking any rules in your municipality or HOA. I would also consult with a real estate attorney to find out how you can protect yourself and your property against anticipated and unanticipated issues. One of my best friends has a wing of her home in Atlanta that she uses for Airbnb and she's quite successful but she does have a couple of horror stories. Wherever you go, there they are.

Also, in my resort area we have lots of seasonal rentals. Property management companies charge an arm and a leg to manage those because they are so labor-intensive. So really crunch numbers and make sure it pencils for what you're passing through. You'll be replacing silverware, Furniture, appliances, over and over again. Deep cleanings on a regular basis. High-speed internet, all utilities, many things that in a long-term rental a tenant would pay for.

Jun 29, 2019 07:22 AM
Ambassador
5,230,113
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

I wrote a ditty about it a year or so ago...

The very first step is to confirm with the complex/neighborhood, city and county before purchasing a property for that purpose.

Jun 29, 2019 08:29 AM
Rainmaker
5,772,575
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Joseph,

Other than checking the BNB regs, I would make sure that the city allows this as Dan Pittsenbarger stated.  Our city came down hard on these and wants to be paid for tourist taxes.  A

Jun 29, 2019 07:07 AM
Rainmaker
1,311,397
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

I suspect that you will find good information on the AirBnB website. You also need to check you local regulations in regard to running such an operation.

Jun 29, 2019 07:01 AM
Ambassador
5,049,450
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

The biggest issue, I suspect, is for the buyer to do the due diligence to make sure short term rentals are allowed by the community/city and any requirements especially around taxes. And if the listing is in an HOA making sure short term rentals are allowed and what time frames are permissable. We are finding more and more HOAs, and the City, cracking down on these types of rentals in some areas.

Jun 29, 2019 08:03 AM
Rainmaker
7,836,139
Roy Kelley
Retired - Gaithersburg, MD

Be sure to comply with your local government requirements.

Jun 29, 2019 07:26 AM
Rainmaker
4,572,183
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

A property owner may or may not be able to do this.   My suggestion is for you to investigate any laws/rules that may apply so that you are aware and know/understand such and to advise the buyer to research/decide if this is a viable option for their situation.  " 

Jun 29, 2019 06:55 AM
Rainmaker
758,035
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

Air BnB covers just about every detail of what needs to be done on their website. For example, you are expected to provide clean sheets for the bed, towels for the bathroom.

Jun 29, 2019 06:41 AM
Rainmaker
469,510
Dan & Laurie Pittsenbarger Team
Keller Williams Western Realty - Bellingham, WA
Lakeside & Coastal Single Family Homes

The first step is be sure that you can - that it is an allowable use. That someone else down the street is doing it probably isn't enough due diligence for you to market that it can be done with the subject home.

If it can be done, all one has to do is furnish it and either sign up with a service or start marketing and maintaining the AirBnB one's self.

Jun 29, 2019 06:37 AM
Rainmaker
2,390,620
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Step one would be to check City, County, and State statues and codes Joseph Luca .

Jun 29, 2019 09:09 AM
Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I have no idea... and I would expect it changes from one municipality to another.

Jun 29, 2019 08:32 AM
Rainmaker
900,128
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

I think laws are different depending on community and state. Best to check in your area. There may be hotel-type taxes involved.

Jun 29, 2019 08:19 AM
Rainmaker
4,882,355
Richard Weeks
Dallas, TX
REALTOR®, Broker

Probably depends on your state and local rules.

Jun 29, 2019 06:30 AM
Ambassador
6,393,609
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671
  1. Buy the right property, why would they want to go to this location?
  2. Make it something that people will want to rent.
  3. Hire the right manager to make it happen.
Jun 29, 2019 04:37 PM
Rainer
427,257
J.R. Schloemer
Kentucky Select Properties - Louisville, KY

I was goingt to mimic what Candice A. Donofrio stated. 

Have the property owner/buyer contact an attorney (real estate) that is familiar and comfortable with AirBNB issues & laws. Many local governments have specifically passed laws governing how AirBNB properties are handled and the taxes needing to be paid to the municipality.

We had an attorney come in and talk to us about this two months ago. It was very interesting and has a lot of legal aspects to it that I had no idea about. 

Jun 29, 2019 12:03 PM
Rainmaker
1,844,301
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

too many people think this is easy. It's running a mini-hotel & you can't tell me otherwise. Did anyone mention bedbugs to you?

Jun 29, 2019 10:31 AM
Rainer
509,449
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

I had a client in the past and he rented his condo as air bnb.  I know he has the hoa approval but other than that, he never said that he has any other approval. I would get in touch with the below:

https://www.airbnb.com/host/homes?from_nav=1

Depending on what I find from the air bnb I may run it by the city as well.  If I think it's not enough, I would get an attorney to prepare a document to cover my property.

Jun 29, 2019 10:27 AM
Rainmaker
1,502,998
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Does your city, HOA, area allow for it?  If yes, do you plan on managing it yourself or hiring a company?

 

Then I'd look at the cashflow.  What are similar units renting for at various times of the year and what's your mortgage going to be?  Add in any HOA or managment company fees, plus cleaning crew fees, toiletry fees, furnishings, etc. and see if you can break even.

 

Did this last month on vacation with my folks in The Cotswolds.  Looked at some new construction and found a great management company.  Rents weren't enough to justify the mortgage and over lunch the following day we rulled it out.

Jun 29, 2019 10:22 AM
Ambassador
3,345,091
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

I am not.  Check with the local rules on said rentals. Some areas prohibit it. 

Jun 29, 2019 09:19 AM
Rainmaker
4,936,705
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I need to learn more about this process

 

Jun 29, 2019 08:27 AM
Rainmaker
911,338
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Varies by State, county, city, town, and HOA's around here. Short term rentals are hard to find usually, so i'd just list it as short term at a higher monthly rent.

Jun 29, 2019 07:30 AM
Rainmaker
2,071,025
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL

In Sunny Isles Beach we have a few condominiums where short term is allowed. Investors like it.

Jun 30, 2019 06:49 AM
Rainmaker
1,598,452
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

Short term license required in Sunny Isles Beach.

Jun 30, 2019 06:29 AM
Rainmaker
1,725,996
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

As Candice A. Donofrio wrote and to add, be sure you have the mechanism in place to satisfy tax obligations.

Jun 30, 2019 06:01 AM
Rainmaker
5,583,278
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

the most important step is the first..... make sure the zoning allows it and you have the blessing from the zoning board.... you want that in writing!!!! or make it a contingency..... the rest is bricks and sticks.... and excellent condition maintained all year....

Jun 29, 2019 09:14 AM
Rainmaker
1,196,798
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Oh boy, good question. I'll look at the answers you receive.

Jun 30, 2019 02:31 PM
Rainmaker
5,216,409
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Read Candice A. Donofrio’s comment and proceed with caution.

Jun 30, 2019 05:55 AM
Rainmaker
2,220,654
Anthony Acosta - ALLATLANTAcondos.com
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

I do not Joseph.  Good luck

Jun 30, 2019 05:24 AM
Rainmaker
2,781,173
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Very lucrative especially when it comes down to renting rooms (college students) or rent by the day or week depending on situation. Have tight paperwork, a good deposit and a top notch vetting process. Mistakes can cost

Jun 29, 2019 10:35 AM
Rainmaker
1,239,901
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

City, HOA CC&R....

Jun 29, 2019 09:17 AM
Rainmaker
1,622,432
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Check with your city and with your community first. If there are no regulations against short term rentals, clean it up, decorate, and just list it on their website( remember, they take a large %, make sure your client agree to pay everyone's fee).

Jul 01, 2019 10:13 PM
Rainer
417,221
Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Many cities and counties do not allowand will fine the owner. Check also HOA rules. The neighbors are going to complain about the parties. 

1. Get rental insurance

2. be preparerd to clean and fix lots of things

3. inventory the house - little things get stolen, Do not have anything in the house you can't afford to lose

4. tenants will expect internet and cable - do not use the internet at the site as they can hack into your information, and change the password regularily

5. have someone availabel 24/7 to answer tenant questions

 

then good photos 

Jun 30, 2019 03:19 PM
Ambassador
3,125,842
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Be sure the CCRs and HOA allow short term rentals and be prepared to be a landlord to entertain the downside as well - you may also need a business license to oversee. Look for other entities that have successfully ventured into this arena, contact them and move forward if it still is appealing.

Jun 30, 2019 01:33 PM
Rainmaker
3,416,038
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Here in NH it has to be approved by the town/city. Then the owner has to register with the state to collect rooms and meals taxes. 

Jun 30, 2019 04:20 AM
Rainer
344,603
Kris Collis, Associate Broker
Smart Way America Realty - East Stroudsburg, PA
Professional Results you Expect 570-801-5525

After confirming legal/HOA/local requirements as Candice, Dan and others stated, check out Zeona McIntyre, who has presented extensively on this topic. From the beginning nuts and bolts to "Let us turn your Airbnb listing into a cash flow generator while you travel the world."

Jun 29, 2019 12:12 PM
Rainmaker
4,160,899
John Pusa
Glendale, CA

Joseph Luca you need to fallow HOA, local municipalities, regional, and state laws.

Jun 30, 2019 06:00 PM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Some folks ask a similar question that sounds like, 'I want to park my trailer in the back yard. I know it's against the HOA, but will they enforce the rule?'

My response is, 'As you can see the HOA annual fee is $50...and it's voluntary! You must make the assessment if the HOA has the resources to do anything.'

In the AirBnB situation, YOU are not the one implementing the strategy, but you are the one who can suggest the income potential of short term rentals. Like any investor (buyer) they must complete their own due diligence.  My suggestion is to become familiar with the existence of any PROHIBITIONS of short term rentals. Then be prepared to refer the investor (buyer) to a attorney who can make everything official.  Of course the investor (buyer) may choose the forgiveness route instead of seeking permission. Keep your hands clean from that possible choice.

Be aware, the ones who keep watch regarding AirBnb are others who are doing so below the radar, existing local Bed N Breakfasts and landlords of various sorts. These are the ones most likely to throw the newcomer under the bus, you know like how real estate agents self police.

The 2nd most likely source of policing are those locals who can not take advantage of doing AirBnB and will do all they can to prevent others from benefiting.

One past buyer is paying the full amount of the mortgage from the short term rental of a carriage house (460 SF).  Being located within a mile of the Gulf makes this reality much more likely.

Read then refer your investor (buyer) to the TOU of the AirBnb website.  That will explain how to get started and identify the areas for which AirBnB will assert NO RESPONSIBILITY and that they can not be help responsible.

It is critical for you to document the investor (buyer) has been advised multiple times to complete their due diligence and have been provided access to professional resources from which crucial information and service can be obtained.

 

Jun 29, 2019 12:12 PM
Rainmaker
5,868,554
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Have no experience, reading comments.

Jul 18, 2019 06:59 PM