How ‘Airbnb’ Is Changing The Rental Market
Just when everyone thought the rental market was stagnant, Airbnb came along and changed everything. Now you don’t need to own an apartment complex or rental homes. With Airbnb, you can now rent out your own home, fully furnished with your belongings, while you’re away. Or if you happen to have an extra bedroom that was left behind by your recent high school graduate, then you can rent that out too. So how exactly can Airbnb affect you, as a property manager or owner?
Double the Advertising
Instead of fighting the Airbnb revolution, embrace it. With the average person using this to advertise their extra room or summer home, use it to give you twice the advertising. Post your rental on Airbnb and have a whole new set of eyes viewing your property.
Renters Don’t Need to Sign a Lease
Renters don’t necessarily go through a credit check. And they don’t have to sign a lease. But they pay upfront, and they can either choose to leave early or stay the full term. This brings up a lot of questions, like what if they damage my property? What if they complain about every little thing? What if they don’t follow the rules? That brings us to our next point…
Your Renters Come with Reviews
Credit checks made by property owners give you insight on whether the renter paid in time or paid. Through Airbnb, you can see what past property owners had to say about your future renter. If there are no reviews, then you can deny them. If there are bad reviews, you can dismiss them. And if they have excellent reviews, then you can be sure they’ll treat your home magnificently.
Long-Term or Day-Term “Leases”
If you prefer to use your rental as more of a hotel type, then you can choose 1-7 day rentals. With these, you can charge premium “hotel” prices. If you allow your renters to stay longer, then you can give them a percentage off monthly. The cost can be anywhere from $100 US a night (which is the average) or $1500 and up a month. The best part of this is you get your money completely upfront. No need to nag your renter to pay their fees.
Security Issues For Your Other Tenants
On the contrary, Imagine this situation; you have a multi-unit property of 50 apartments. You begin to receive complaints from your renters that they’ve seen an apartment with a new guest every day. What’s going on? Your tenant is hosting an Airbnb home. What do you do? Well, you may end up evicting this tenant. But what if no one complains, and you run the risk of your other tenants renting out their home (your property) to Airbnb users?
Depending on Location, Regulations and Laws Are Different.
As a property owner/manager, your property has to maintain a variety of laws and regulations. You pay taxes etc. Airbnb renters aren’t necessarily under these same rules. Big hotel chains are currently lobbying for a “level playing field” which requires Airbnb rental managers to follow the same rules.