I rent out sleeping rooms and RV Full Hook-up Spaces via Airbnb, other services and privately. Sometimes I have also rented out some of my units, with furnishing, on a short term basis. You have no idea how beds I've changed and bathroom/kitchen I've cleaned over the last couple of years. And then there's the laundry -- sheets, towels, etc -- and keeping up the property in general. Be ready to work hard. I know, I know -- you think that you're going to hire someone. Go for it. Been there -- done that. Have that ticket stub. When they don't show up, you get to do the work! Period. End of story. And Airbnb can pull the listing any day, so you'd better have a Plan B. The city can zone you out. Someone can totally trash your property. Stuff happens and you have to be ready for that possibility. That's the down side.How do returns compare for a yearly lease vs. Airbnb business?
I have a 3 flat in Chicago and want to get the most "bang for my buck." I came across this...
Airbnb Rental Profit: $16,632
Airbnb 2-Bed Rental Data (June 2016 - May 2017)
Fulll-time 2-Bed Rentals: 556
Occupancy Rate: 63.5%
Average Daily Rate: $181
Rental Revenue:
90th Percentile: $55,337
75th Percentile: $38,541
Median: $28,393
Zillow Data (April 2017)
Zillow Annual Rent Cost 2 Bedroom: $21,909
And this: https://gizmodo.com/i-bought-an-apartment-just-to-rent-it-out-on-airbnb-1458666661 Has anyone done this?
The up side is that you can hoard every dime that you make on renting those units, and use that money to pay off the principal on your mortgage nut -- major debt reduction. Those side income streams aren't my core business, so it's gravy money (I call "dribble money") that I use for investments and debt reduction. It can be a really good ride while you hang on tight to the profits...
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