It sounds like easy money; turn your property into a short-term rental and start collecting money as an Airbnb host.
Of course, as with any business venture, there are both pros and cons to consider.
The Pros of Being an Airbnb Host:
- Make income off your property
One of the biggest pros is the potential to make money off your property. When you’re an Airbnb host, you’re able to rent out the property for additional monthly income.
While you always hope you’re making enough money each month to cover your mortgage and expenses, during a great month you may be able to make significantly more.
Depending on the location of your property, high demand can further drive up your income potential.
- Less stress
If you’ve ever been a landlord before, you know there are sometimes problems with getting tenants to pay up.
When you’re an Airbnb host, you don’t have to hound anyone for their monthly rent payment. With Airbnb, guests pay before they stay.
- Flexibility
Another big pro is flexibility. When you’re an Airbnb host, you’re able to choose when to rent out your property.
Because of this, you’re able to block out certain dates when you don’t want to have renters.
This can be an advantage if you’re planning on having your own guests come visit for a short time, or if you need a little time to take care of necessary repairs without worrying about guests.
The Cons of Being an Airbnb Host:
- Being responsive 24/7
Of course, while there are plenty of pros that go along with being an Airbnb host, there are also a few cons.
To stay in good standing, an Airbnb host needs to respond to inquiries within 24 hours, if not sooner.
You need to be able to field inquiries from those interested in your property as well as get information out quickly to guests who will soon be arriving to stay.
You also have to respond to any issues or requests quickly that come from guests currently staying at your property.
- Non-guaranteed income
While the potential is pretty good for making an income off your property, it’s not guaranteed in the same way that a long-term rental is.
When you’re a landlord you know you can depend, at least to a certain extent, on your monthly rental income.
With a short-term rental it’s a little harder to budget. While some months may surpass your expectations, other months may prove more difficult.
- More upfront costs
When you’re an Airbnb host, you also need to consider some of the upfront costs. Unlike long-term rentals, you will have to provide a fully furnished Airbnb.
This doesn’t just mean furniture. You also need to account for things like
- Sheets/bedding
- Towels
- Kitchen supplies
In other words, you need to furnish the property attractively and include the types of things short-term renters expect to use during their stay.
