Is it worth investing in now?

[Simone1027]

So, the whole corona situation doesn't seem to be toning down in the slightest, I'm a bit worried honestly. I always wanted to be a host, still plan on doing it, but I have a few things to do before I can open up shop, some new appliances, maybe an entertainment room, just make my place more hospitable. Was thinking about a backyard pool too, but these are so expensive, don't really know if it's worth it, honestly. And there's the whole issue with maintenance too, I'd have to work to keep it clean. But I guess that I'm gonna use it too, so it's an investment that I would benefit from as well. Would you take this risk?

[Mike-And-Jane0]

@Simone1027 Go for it along as your financial risk is not too great. There will be many people who used to rent houses/flats to Airbnb them who have been caught out and can no longer make 'easy money'. As such the supply will be down so you should do well.

Don't forget though it is not easy money - research this forum for all the potential downsides but don't be put off as the upsides are rarely mentioned.

Good luck

[Anonymous]

@Simone1027 At the moment, long- distance and international travel are way down, and tourism is gravitating more toward recreational getaways outside of urban centers than the more traditionally popular cities and resorts. I don't know where you live, but this might be favorable to your location - especially if you offer a self-contained unit with private entrance and unshared amenities. Even if you're not near any well known tourist spots, people rent Airbnbs for all kinds of other reasons too.  Give a lot of thought to who your target customers are, what draws them to your location, and how heavily-saturated your area is with similar listings. You might have an untapped niche, but if you're seeing lots of similar places going for rock-bottom prices, you might hold off on investing heavily in hosting-specific upgrades.

I do suggest you take some time to read through other topics on the forum, to give you some idea of the issues other hosts are experiencing. One problem you'll quickly notice is that a lot of people are booking homes under false pretenses to throw parties, which quickly get out of control, causing nuisance to the community, physical damage, and heightened risk of Covid outbreaks. If your property is large enough to accommodate a pool and dedicated entertainment room, it could become a magnet for this sort of group - so it would be imperative to have means in place to prevent unregistered guests from entering (eg external surveillance, and either you or a Co host nearby to monitor the place).

While hosting can be quite rewarding and fun, Airbnb tends to downplay the risks involved, and promise more support and protection than they deliver. If hosting looks like it could become a gainful venture for you, expect that you'll be absorbing most of the burden of risk including guest conflicts and damage. And of course, be sure to thoroughly understand your local STR regulations and renter protections. 

[Mark116]

@Simone1027  The biggest variable with a short term rental is the regulation.  Many cities and counties have and continue to put in significant regulation of who/what/where/how people can use their properties for short term rentals like airbnb, so you would need to determine that if your area put in regulations that were anti STR, would you still be able to recoup your investment some other way.

[Clay132]

Beware of one thing if you do add a pool to your property - you might attract the wrong crowd. This is always an issue with hosting, true, but since you already have an entertainment center, you'll be adding a pool too, and who knows what else, all objects of entertainment for youth, you could attract youngsters who are just looking to party and wreck someone else's home instead of theirs. Don't fret though cause a little vigilance goes a long way, and if you just look over guests carefully before you accept them, you should be in the clear. If you are adding these many fun features to your home, maybe your target guests are families with children, which would make a pool a perfect investment for them.

Moving on to your question, honestly, it is worth adding a pool. I just wouldn' go for an in-ground one cause it will end up costing you well over $15,000, maintenance is a hassle, just not worth it. Look for an above ground pool instead, these sell for hundreds of bucks, even if some models might be more expensive still not costing as much as an in-ground pool, which is kind of a ridiculously expensive investment.

https://www.optimainstitute.com/pool/above-ground-kits.html

You don't have anything to lose if you add the pool if you don't spend too much on it, after all, cause you will use it too, so you make up for the lost money one way or another. Of course, for hosting, if you mention that you have a pool, the desirability factor of your property will increase.

[Melodie-And-John0]

Its a business @Simone1027 , they dont all succeed, some fail quicker than  others.  Your profile really doesnt tell us things that would help us help you (where you are, what type of property your on, what your customers would come to your area for...).   Your talking a significant investment with what sound like not much experience hosting (much like the rest of us when we started). 

That said, there is no better time to open a business if your ready to take it on full force.  There are some lessons being learned daily by those of us that arent exactly new at this about guests and infectious diseases, creating a shared party palace may not be the way to safely advantage future guests in your home and many of our guests are very aware of shared being not good for them.  Thoughts to ponder for sure, stay well, JR

[Azelet0]

I totally get your concerns about investing in a backyard pool. It can be a significant expense, and maintenance can be quite a hassle. Before making a decision, it's important to do thorough research and consider all the factors.