If the place is near you, or in your home, you can be the co-host and cleaner, and if you are handy the handyman for minor repairs. In addition to the above costs you will be paying the co-host (only needed if the place isn’t nearby), paying the cleaners, paying for any repairs due to damage, and paying for supplies. If you are renting then it is just money lost. The plus if you own the house, at this point your investment is the house, and it may increase in value. If no one rents you need to cover that, so it’s best to keep those costs extremely low. If you own the house there is the mortgage, insurance, property taxes, baseline utilities, and yard maintenance. If you are thinking sublease, and can find a landlord willing to let you do that, the monthly cost is rent, insurance, baseline utilities (heating, appliances, internet etc) and any other monthly fees. Let’s look at the cost of running an Airbnb. Your avg Joe who gets into that biz is totally clueless and they aren't respected AT ALL in most communities.
I personally don't suggest arbitrage to ANYONE. Plain and simple, you're better off buying a home and just praying you get enough bookings to make it worth your while. You'd probably need a good min of $25-50k cash just to completely design, furnish, and prep a decent STR. We would both have our attorney review all contracts to ensure you realized the liability you were jumping into. You'd need to currently be a property owner so I felt secure knowing that you know how to properly care for a home. I'd expect you to show me a proven track record in a similar business on paper and you'd be expected to provide proof of insurance and all the other neccessary things needed to jump into the short term rental realm. I would sit down with you both to review your business plan, your background, and would require proof of $100k in liquid assets that would readily be available in an emergency. For anyone who's wanted to do this with one of my properties, we would charge a minimum of 4x the normal monthly rental rate in comparison to a traditional rental.
0 kommentar(er)
