Tenant renting v. Airbnb

in
California, United States
Level 1
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Hi, I'm new to Airbnb. I have a 3bd/1.5 bath house in Covina, CA. I am considering doing the Airbnb hosting of the entire house instead of renting it out. I use to rent the place out to tenant but now considering short term renting. The ongoing monthly rent in the area currently is between $2600 -$3200. Please help with any advice? 

Thanks.

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2 Replies

Re: Tenant renting v. Airbnb

in
Frederick, MD
Level 10

@Anthony1373 I have been both a landlord and a host. Here are some things to consider:

 

Traditional renting /landlord:

-Less daily communication with tenants

-Less expensive start up (you don't have to fully furnish the place down to kitchenware and toilet paper)

-More ability to screen people with credit and background checks

-More legal protection. You have a lease and a codified eviction procedure (just brush up on the laws in your state.)

-Possibly less income, but not always

-Less daily work

-When repairs need to happen, certain things are mandated by law and can be expensive. 

-If you get one bad tenant, it can really be a nightmare.

-Tenants don't review you and determine the future financial health of your space. 

 

Airbnb

-Fewer problems with bad guests if you only do very short stays-- they are gone in a few days

-Zero protections for long term stays and you could get squatters (just don't do LTR with ABB)

- A LOT more interaction with guests/more emotional labor with complaints

-More expensive start up and replacement costs for furnishings and amenities

-High possibility you will be responsible for cleaning up after an illegal party

-More income potentially

-More coordination needed with cleaners who turn over the space and a lot of work each time

-Less control over your space- ABB will require you keep bookings you are uncomfortable with or penalize you for cancelling

-Less control over refunds if guests make spurious claims

-More visits to the space to make minor repairs or get the WiFi working, etc

-Zero ability to screen guests as many hosts do not leave honest reviews and ABB does not do much to ensure guests are who they say they are

-Zero support from ABB if you have a problem.

-More chances for scams and illegal activity as guests use temporary spaces for all kinds of things they shouldn't.

-Guests review you and that determines the financial health of your listing. A few so so reviews can get you delisted. And reviews are not removed except in very very limited cases. 

Re: Tenant renting v. Airbnb

in
Arkansas, United States
Level 10

@Laura2592 

 

Excellent analysis.

 

The biggest factors for me are:

 

Getting stuck with annoying, dirty, deadbeat tenants for a year or more.

 

Collecting the rent.

 

 

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