Airbnb’s are a popular way for condo owners to make a little extra change and for travelers to save a little money on their stay. “Winter Texans” as we call them are a great target for this type of arrangement-6 months here and 6 months in their home state. But what happens when you Airbnb your unit and you get found out? Condo Airbnb – ing is not the same as a house. However, with the right property management company in place, it can be a win-win situation.
Condo Airbnb – What You Need to Know
When deciding on condo Airbnb, start with your CCRs. Short-term rentals would need to be allowed by your community. There is nothing worse than signing up on Airbnb, only to find out that it is against the CCRs for your community. Otherwise, there’s a real possibility of getting fined from the association.
Don’t forget to check your city regulations as well. Many cities have begun very strenuous regulations about not only condo Airbnb s, but short-term rentals in general. Here’s a recommended guide with city resources if you’re in the Houston area
Consider how you will get keys, relay the rules, etc. to your condo Airbnb guest. Then there’s the make ready between rentals, and cleaning. What if your guest break a rule? If you’re fined by the condo association, who’s paying that? There’s more moving parts then you realize.
Your management association could be an Airbnb ally.
Condos can become very popular on Airbnb, due to the amenities and often their proximity to downtown, restaurants and bars. How much money can someone make? An Airbnb host in San Fransisco was earning $4,000 per month by renting out apartments. For Houston, it’s reasonable to charge $65 per night in a newer furnished condo close to downtown or other amenities. $1,000 to $2,000 per month is possible per unit.
Airbnb can be an extra revenue source for condominium owners. One way is to rent unsold units until a buyer signs an agreement or even allowing a furnished model to be leased on weekends.
Sounds great, doesn’t it? But we all know, with increased flexibility and revenue comes increased commitments in time, resources and liability.
- Insurance is the first hurdle. Have your management association review not only what your current policy covers, but what changes would need to be made to cover the liability of short term rentals, not just for common areas, but for individually rented units.
- Security is another consideration in condo Airbnbs. Permanent residents could feel unsafe with constantAirbnb traffic. Plus, it is not uncommon forAirbnb guests to be in town for a party; after all they’re typically on vacation. Noise violations could increase.
- Don’t forget damages, who pays for them if they are to common areas? It could be your responsibility.
- Finally, there’s just the day to day logistics of keys, repairs, cleaning crews, etc. Essentially, your condo becomes a hotel; and hotels require onsite management.
Looking at the list above, I’m sure you can see where a property management company is integral to the success of Airbnb endeavors. Just as they act as a buffer and mediator between property owners; they can be that onsite management needed when offering short-term rentals.
If you and your condo property decide to move forward with an Airbnb model, be good hosts. Here are a few tips to help you out. Still want to know more? Get a free consultation from RISE in Houston. Contact us at (713) 936-9200 or [email protected].