arbitration

[Viviane401]

Hi, I'm new to Airbnb, I'd like to know your opinion on renting houses or apartments (long term) to list on Airbnb, do you think it's worth it?

thank you!!!

[Elisa]

Hi @Viviane401 😊, 

Thank you so much for asking this question here, and welcome to the Community Center!

Where are you thinking of renting from?

To help you find an answer, I’m tagging a few experienced hosts who might be able to assist: @Shelly159, @Guy991, @Kelly333, @Casa-De-La-Tierra0, @Graham490 and @Nandini11.

Thank you in advance, everyone!

[Viviane401]

Hi @Elisa , thank you!!!

I'm living in Orlando, FL. I'm looking to rent in a tourist hotspot.

[Helen3 · Accepted solution]

You will have three key issues  @Viviane401 

1. finding a landlord willing to sublet for STR

2. checking to see if you can comply with any STR regulations for your location

3. carrying out your market research into likely supply and demand and pricing and using that to identify whether it's likely to be profitable 

[Elisa]

Hi @Viviane401 😊, 

Thank you for letting me know!

That’s fantastic, I wish you all the best! 😍
What do you think of the suggestions from our hosts?

I'm also tagging some hosts from Orlando to see what specific advice they might have for you: @Casey464, @Lynn1731, @Michaela397, @Barbara2155 and @Nellyvonne0.

[Graham490]

Hi @Viviane401 @Elisa 

Let me try and better understand your question....

Are you seeking opinion around simply renting your space:

a. directly in the marketplace to long term renters OR 

b. listing your space for long term clients via Airbnb OR

c. listing your space to short term clients via Airbnb?

@Helen3 is correct that your first port of call is to your local authority to see which is permitted and at what potential cost to you for each. (ie bed tax, local authority tourism taxes, insurance...) this will give you a business sense of which is better.

Then you will need to judge the local market and the local "competition" for each and what they charge and how your place is positioned (rate wise)

This will give you an idea around the cost benefit / return to you for each of the above.

Other considerations in this ROI include:

1. Do you want to be able to access your space at times during the year for your own stay/ family stays... ie do you need to Block Out nights - not possible; with renting long term.... but easy for Airbnb.

2. Seasonal variations... your location may let you adjust your rates easily to cater for the tourist season.. easy on Airbnb.

3. Likely Occupancy rates for each model.  With long term rentals - and contracts in place, you will get predictably around income. Short term stays are less likely to be producible , but most likely to yield more.

4. Cleaning and management fees.... you need to cost in each for the different options.... both will rise over time.

5. Furnishing and service fees.... 

6. Insurance ... Airbnb has the cover for damage by clients.

7. Cost of your time is each category.

This exercise will allow you to make your best decision.

Best wishes!

Regards, Graham

[Elisa]

Hi @Graham490 😊, 

thank you so much for helping @Viviane401.

You highlighted some great points. How do you manage seasonal variation on your end?

[Casey464]

I'm sorry, but I don't think it would be worth it. With rents as high as they are and tourism slowing, your place would have to be fully booked to turn a profit. And that's if the landlord allowed you to rent their place.

The City of Orlando also has regulations around STR: https://www.orlando.gov/files/sharedassets/public/v/1/departments/edv/city-planning/factsheets_short....

https://www.orlando.gov/Initiatives/Home-Sharing-Registration

I rent the spare bedroom in the home I own. I had to pay $275 for a permit and have an inspection. It's worth it to me because Airbnb helps me afford my home that I am already living in.