Hello I just started to host my house in Vancouver canada. I...
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Hello I just started to host my house in Vancouver canada. I wanted to know what is the difference between hosting yourself o...
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We are exploring selling our cottage. The incident with the guest shooting animals on the property has really made us stop and consider if we want to keep dealing with the uncertainty of Airbnb. I just wanted to share a few things we are finding out:
I am still undecided, but if you are considering your options too I thought I might give you some food for thought.
This is such valuable information. Thanks for sharing. Have you concluded that, overall, being an ABB host is too labor- and time-intensive?
@Hal3292 we are getting to the place where we no longer want to host ABB stays. As I say we aren't 100% decided. We have had a variety of intense guests over the years and a recent experience with one who was dangerous and left a strange, poor review. We love our property and have put a lot into it. I am at the point where I am terrified that I could lose it altogether if we have another guest like the recent one. ABB does zero to vet and customer service is a quagmire. So we are exploring other options. Selling is one.
helen@744 Sorry to hear that, a lot of pressure has been put on Airbnb hosts in the last two years and it is difficult to see how experienced hosts will survive with their sanity intact. Once people simply took holidays or 'breaks ' or work stays or something valid . Now they seem all to have various seige mentalities they are taking on the road . Its wearing as they feel we should be 'protecting them' and we are but sometimes it feels like we need protection from them. Income has been inconsistent and certain international markets are closed as well as many interstate markets and lots are travelling who have not done so before and are armed with 'unrealistic ideas about what to expect" add the extra costs from cleaning and products and even the toughest most experienced hosts are finding it difficult up hill going.New hosts are pouring into the market here propelled by promises of riches across a number of houses.They are promoted early and get bookings from other hosts 'market share 'in a small market but will struggle to meet costs in the long run. Airbnb gets exactly the same fee if its them or me.It is vitally important to have a 'niche 'market at the moment and for experienced hosts to hang in there . Educate the new users as to what you are what, you expect, and what limits you personally have.Some people seem to want a nursemaid and some listings must be encouraging that. Me included . I think many older people and those with disabilities are travelling and using Airbnbs but the expectations on the hosts is terrific. During such stressful times it just adds greater pressure when someone who should be on a cruise ship with attendants tells me 'Well usually I would be cruising in Europe but can you fix the bed its a bit uncomfortable'. We are now all things to all people. Just not at the end of the day 'doable'. Without a living wage and without being able to increase costs because the market will not admit of it then its more difficult.Selling risks leaving money on the table and the airbnbs here do not seem to garner any extra money from the business although we are in a 'hot ' market it has a few components and seems unstable. Good luck . Hang in there if you can . You are experienced and capable H
You are well researched and if you decide to do this, it is well and intelligently planned. Please let us know what transpires.
As a former realtor (Manhattan/Brooklyn) and real estate investor who has retired from owning several multi family properties, could I please just add:
-- Depending on your market, you could hire a property manager to run your entire ABB operation, start to finish. Often such people need to hold real estate licenses, this varies with state law. A license is always a good thing.
-- If you can't find an ABB manager in your town then you should certainly be able to find a leasehold rental property manager there or nearby. I hired quite a few PMs over the years, including in quite small towns. They don't need fancy storefronts, they are often hidden in back office or warehouse areas. In '08 when the stock market was tanking I whistled all the way to the bank. I barely lifted a finger otherwise, as the PMs did all the work.
Given what the financial markets are doing and likely to do, is it prudent to reduce diversification of your overall financial portfolio by selling an investment property. This is a question I would consider in your situation.
--Find a real estate agent/broker (a Realtor is a brand for a certification that a lot of terrific agents do not bother to pay for, it is not = to a real estate agent/broker) who has commercial experience. You're selling a commercial property, not a residential property. I wouldn't even talk to a residential agent if I were you.
--Some people just hate paying any taxes. I had a father like that. But if you've made a ton of money on your investment, who gives a lamb's ear about paying the taxes. Letting tax obligations make decisions usually doesn't maximize net worth. (There are exceptions I know.) What we all ought to care about is a tax code that is fair to those of us who are not billionaires, but that's another topic.
The best way to avoid capital gains tax, if that is a big goal for you, is to keep your gains unrealized, that is, hang onto the place.
That thing about your post that most concerns me is that you sound discouraged and tired. Real estate agents (the bad ones) prey on people who are discouraged, tired, hate the property, or are grieving over a loved one who has passed.
I've been on both sides of that one.
You might, might be at risk of making a regrettable financial decision in your current emotional state. The most likely mistake is that you will sell to low, or hire an agent/broker who deliberately (or ignorantly) does not market your place properly to get the highest possible price.
If you can hold off doing anything, especially signing anything!, for a couple of months, I hope you will think about waiting. Let your emotions settle down.
My two cents and best wishes whatever your path, fellow traveler @Laura2592
@Karla533 thanks for your insight. Believe me we have considered all of our options. A property manager would add too much expense and our market won't sustain doubled nightly prices (my husband was a property manager for a commercial investment brokerage so hes explored cost and has great contacts. Its a no go.) As we use the place ourselves we aren't keen on traditional landlord/tenant situations. I did start exploring the site you sent about sabbatical homes and that's definitely on the table. We aren't deciding yet.
We stand to profit nicely from the sale if we get our bottom line ask. We won't just sell to sell no matter how discouraged. This isn't our only investment nor investment property so I don't worry too much about the diversity of my portfolio if it goes. I have had many high intensity guests over the years but have reached a limit. Better to get out on a high note than let all of your hard work degrade.
Glad to hear all this 🙂 I would love to buy more ABB properties but I'm supposed to be retired 😉
@Karla533 I used to think we would want several. After 4 years of hosting I don't know if I will ever want another!
@Laura2592 Maybe you take a complete break for a couple of months, totally close the calendar and let the stress of the WorstGuestEver fade before making a decision. Since you use the property yourselves, I think fairly frequently, you might really miss having that option.
Is there any market for something like 3 or 6 month leases, for maybe someone getting their masters at a local university? Such an arrangement would still give you access to the property, though in 1 or 2 large chunks, and give some rental income to offset costs.
@Mark116 its possible and something we are considering. The sell or don't sell really comes with if it is a good time to do so for more than just the poor experiences we have been having. The last one was really the proverbial straw to start exploring options, but if we would walk away with a nice profit to put towards something different, its tempting.
@Laura2592 I'm a home share host and would not want it any other way. But you already know that. We have no issues, we are present in the home at all times. Unsupervised guests are the ones creating issues. Definitely take a break, one way or another...you have combat fatigue, methinks. All these items for your book are telling you something?
@Kitty-and-Creek0 I am a bit traumatized by the guest who killed wildlife and left them in the yard, as anyone would be. Being off site is definitely a factor in strange guest behavior. At this time we have no plans to be on site hosts, though we do talk about converting our back yard barn and have made a few inquiries.
@Laura I missed your original post about a guest killing wildlife. That would make me unbelievably angry. That sort of behavior is totally beyond, and I am speechless. If you decide to continue hosting, after a decent break, I recommend converting the barn. You will be much better off keeping a close eye on your guests. I cannot imagine the level of anxiety that remote hosting must create.