WestIndianArchie said:Stayed in an AirBnb recently
Close to the city, but not close to reliable public transportation.
House went for 160k. That's 4800 down, 757 a month @ 3.92 % interest.
3 finished rooms, 3 unfinished rooms.
He was renting the rooms out @ 31-41 per night.
I could have gotten a monthly for 826.
If only 1 of those 3 rooms was rented, he'd cover his mortgage.
There was some other upkeep involved and expense, but for the most part he'd be okay during the winter and making real money during the summer.
The kicker, he didn't live there. I think he had a full time job besides.
The 2nd kick, it was one of his 3 houses.
I only saw him @ noon when he came to clean the bathroom.
I'm thinking this is a good business model that just needs a bit of tweaking.
Good lil breakdown.
AirBnB is basically a way for someone to tip-toe into the real estate rental market. With user reviews, you have a good idea of who's renting. If they're idiots, they're only staying a short time anyway, small likelihood of having to evict (I'm sure it's happened before), you only have to put up with people for a short time.
I suspect, all else equal, AirBnB would increase the price of long-term rentals in the area because of the ease of rentals, simply because it would decrease the quantity supplied. There are a certain # of owners who would rather pick and choose when, to whom, and for how much they want. They can keep it available for friends or family to use if needed.
I rented a place in Chicago a couple months ago...around $50 per night, just a room. They made around $200 from me, pretty worth-while to have to put up with a tolerable stranger.
My friend does this in my decent-sized Midwestern city. For the most part, she's had great experience renting out her spare room+bath. Couples in town for weddings, events, etc.