Running your own AirBnB business sounds like a great adventure: You will meet new people, run your own business, and make more money than you could on a traditional rental. Right? Well, that’s not always the case. In fact, in our experience, MOST homes in Austin are more suited for a traditional rental than an AirBnB. Let me explain why:
- The Traditional Rental Market in Austin is very strong. As more and more millennial delay purchasing their first home – the rental market has becomes even more reliable. Even better, as home prices continue to skyrocket in Austin, renting becomes a more desirable option for most.
- It is nearly impossible to make a profit if your home is not in a desirable location (near downtown, close to an amusement park, or other attraction) Simply put – guests are not on vacation to stay 30 minutes from their destination. As we all know – You need to drive several miles to get ANY WHERE in Austin.
- Uncertainty in the market means your business could go up in flames with any number of new legislation being considered. Did you know many cities are considering implementing an 18% tax, similar to what hotels pay? If this goes through, profits from operating your AirBnB will certainly dwindle, and the competitive advantage AirBnB has over hotels in the area will be diminished. Leaving your home and your pockets – empty.
- Do you have time to run an AirBnB? Property running an AirBnB is like running your own business. You are expected to be the point of contact, answer the late night inquiries, be available if there is an emergency, take accountability for your vendors, manage the guest experience, ensure you are following local regulations, and countless other implied tasks. Is this something you want to take on for a highly uncertain, possible, increase in profits over a long term rental?