Hosting short-term rentals and Airbnb in particular seems like a lucrative opportunity to make money without having to make an outrageous investment into the venture. Whether as an attractive side hustle or the main source of income, it can be. And there are even ways to organize things and streamline the Airbnb process so they require minimum engagement on your part, as long as you are compliant with the San Diego Municipal Code requirements and other current or future regulations concerning short-term rentals in the area.
But there are pros and cons to consider, depending on your situation, way of life and expectations. What are they? La Jolla property management companies share knowledgeable, experience-backed insight.
What are the pros of Airbnb hosting?
Running a modern Airbnb near La Jolla Cove can be much more attractive from the traditional landlord approach as it is more dynamic and flexible, which is what hosts love best about Airbnb and what usually makes them turn to Airbnb in the first place.
Here at the top three arguments in favor of joining Airbnb:
1. Better flexibility
Running an Airbnb is convenient if you do not want to be a slave to your property and have a long-term commitment and obligation to a single tenant. Flexibility is the number one advantage of short-term vs. long-term rentals.
You can simply block off dates when you want your home to be off-limits to potential guests, such as if you need to have a home improvement project done, need to leave town and have no one to be in charge while you’re away or want to ensure the place is available for your out-of-town friends and family.
2. You will stay in charge and in control
Being an Airbnb host means you are still in charge of your home’s upkeep and maintenance and things are unlikely to get out of hand. On the other hand, long-term landlords are always at risk that the tenants may cause lasting damage to their property and that repairing the damage, if at all possible, will cost a fortune and take ages.
You are also in control of how and when you are getting paid and you will never have to stress over late rental fees and evictions.
3. A possibly steadier source of income
Depending on the demand and Airbnb coverage in your area, Airbnb can be considerably more profitable than traditional rentals. One of the reasons for this is that more and more people turn to Airbnbs as opposed to overpriced hotels.
What are the cons of Airbnb hosting?
When it comes to Airbnb hosting, what is the dark side of the moon?
1. Possible uncertainty
There is no guarantee that your Airbnb will bring you a steady and dependable source of income, especially not throughout the year, which can be stressful, especially if you are a beginner Airbnb host with high expectations. If you prefer to play it safe, traditional rentals may be your game. As a landlord with a responsible long-term tenant, you will have rental income that you know you can count on month in, month out. This will allow you to plan and predict your cash flow and budget.
2. Less social and personal freedom
If you want to earn and keep the Airbnb preferred host status, you need to be responsive and respond to all inquiries within 24 hours at most, which means less personal and social freedom and fewer opportunities to travel and entertain. Expect to be contacted by prospective guests, guests scheduled to arrive and your current guests who may have questions, issues or requests they need you to address. Keeping up with multiple lines of communication on a daily basis can be demanding and overwhelming.
Organizing and executing the cleaning routine is a challenge in its own right, whether you are doing it by yourself or have a cleaner doing it for you. As a result, the concept of alone time, privacy and your social life will become changed forever, unless you have a dependable co-host or property manager to take over and handle these things on your behalf.
In certain aspects, being an Airbnb requires a more hands-on approach than the role of a traditional landlord does.
3. Instant payback not likely
With the exception of the major appliances, you can rent your place with or without furniture. AIrbnbs, on the other hand, come with a set of criteria you need to meet. Your home needs to be fully furnished, and not just in terms of furniture. You will need to stock up on towels, sheets and toiletries for the bathroom and kitchen dishes, utensils and supplies.
Because of the fierce competition in the world of Airbnb, you need to make sure the finished product looks attractive. That does not necessarily mean you will have to spend a fortune upfront, but it does mean it will take time, energy, patience and attention to detail to get Airbnb-standard results.
Can you pay someone to manage your Airbnb?
While your investment property can help you generate stable monthly income, it takes time and effort to get there. A decade ago, renting out a place would have been much more simple and straightforward, but now that you have an Airbnb, there are certain rules you need to follow and it takes time to learn.
Becoming an Airbnb hosts comes with perks and responsibilities, so so whether this is right for you really depends on the current situation you are in.
So how do you make money off of your Airbnb without draining your other valuable resources, time and energy? The answer is Airbnb property management which can make Airbnb a fantastic fit with your lifestyle.
We set the standard for La Jolla property management companies
Whether you decide to enter the world-famous and globally present Airbnb community or stick to the basics as a landlord, you could certainly use a helping hand, especially if rentals are your additional source of income and you are strapped for time. At Lofty Property Management, we offer a comprehensive set of property management services. Reach out to us today and find out how we can help!