Are you thinking about capitalizing on the Airbnb trend and purchasing a rental property? You're certainly not alone! Millions of homeowners around the world have embraced Airbnb as a second or even primary source of income, but success isn't as simple as shopping for a Suffolk County home for sale and setting up a mattress in a spare room. Prepping your home to become part of the hospitality industry isn't for everyone, and it takes work to turn your home into an Airbnb earner. Our REALTORS® are here to help you make an informed decision, with a look at the pros and cons of jumping on the Airbnb bandwagon.
Turn a Second Home or Spare Room into Extra Income
Let's start with the biggest pro, and the reason you're probably interested in Airbnb in the first place. If your home has a good location and you prep it properly, you can turn your Airbnb property into a significant source of income. It takes work to excel with Airbnb, but if you stick with it, the payoff can be significant. You can rent out unused space in your own home, or purchase a property specifically as an Airbnb investment. Either way, you can generate extra income without Airbnb being your main job.
Prepping a Home for Airbnb Can Be Costly
While you can certainly generate significant income with an Airbnb property, the eventual payoff often comes with a substantial upfront cost. If you're renting out a home through Airbnb, your customers will expect a home that's ready to host guests. That may require significant renovations to create a comfortable, inviting space. You'll also need to think about the costs of utilities, cleaning, landscaping, and anything else required for your property to look its best.
Competition Is Fierce
Part of the reason that prepping a home for Airbnb can be costly is that the level of competition can be quite high. There are millions of Airbnb properties around the world, and you'll also be competing with local hotels for business. While competition is far from a dealbreaker, it's important to recognize that an Airbnb home isn't a turnkey investment.
Show Your Love for Your Community
Do you love the place that you call home, and enjoy helping people discover all that your community has to offer? As an Airbnb host, you put yourself in a perfect position to promote your community and draw new business to the area.
Local Regulations Can Make Things Complicated
Before making the leap with Airbnb, it's critical to check out the local regulations for rental and hospitality properties. There may be limits on how long you can rent out the property, and taxes can vary significantly based on location. You'll also want to check whether your mortgage lender allows you to sublet the property and look at how renting the property out will impact your homeowners insurance.
Becoming Part of the Hospitality Industry
Behind every Airbnb success story, there's usually an enthusiastic host who loves making guests feel at home. If you love helping guests feel comfortable and pointing them toward the best local attractions, then Airbnb may be for you. If you don't like the hospitality side of things, then a traditional rental property may be a better fit.
Whether you're looking for a home that allows you to become part of the sharing economy with Airbnb or simply searching for the perfect place to call home, we can help. Contact us to buy and sell homes throughout Suffolk County.