Advantages of Owning an AirBnb Property
Updated: Sep 25, 2021
Besides making a monthly income renting a property you own to tenants, AirBnb has been a lucrative option over the past five years. The money comes in daily and with the right location, often.
There are several owners of AirBnB properties that are making well over six figure incomes on an annual basis. This income saved several landlords when the rental market dried up. But with every upside, there are downsides as well.
The Advantages of Airbnb
Airbnb hosts list many different kinds of properties—single rooms, a suite of rooms, apartments, etc on the Airbnb website.
Hosts don't have to pay to list their properties. Listings can include written descriptions, photographs with captions, and a user profile where potential guests can get to know a bit about the hosts.
Hosts Can Set Their Own Price
It's up to each host to decide how much to charge per night, per week or per month.
Protections for Guests and Hosts
For hosts, Airbnb's Host Guarantee program "provides protection for up to $1,000,000 in damages to covered property in the rare event of guest damage.
The Disadvantages of Airbnb
Probably the biggest risk for hosts is that their property will be damaged. While most stays go without incident, there are stories of entire houses being trashed by dozens of party-goers when the Airbnb hosts thought they were renting to a quiet family. Hosts whose homes are damaged may also experience considerable inconvenience.
And, while listings are free, Airbnb charges hosts a service fee of at least 3% for each reservation, to cover the cost of processing the transaction.
It Isn't Legal Everywhere
Before listing their properties on Airbnb, would-be hosts need to check their local zoning ordinances to make sure it's legal to rent out their properties. Hosts may also be required to obtain special permits or licenses.
As with any investment, do your research fully and see which is the best option for you.
Carl Agard is the Publisher and Editor in Chief of Boss XL Magazine and the Author of the new Book "Financially Surviving COVID19 (Finding Gems in the Real Estate Market)"