Tenant renting v. Airbnb
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?
Re: Tenant renting v. Airbnb
@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.
-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.