Rental Property Investor · Lancaster, PA · Member since 2016 · 6 posts · 1 vote
I have owned a successful AirBnb for a couple years. Things have been going well and we became a Superhost based on reviews and other criteria. However, COVID-19 has killed us. This should be our busy tourist season in Lancaster County, PA and our home is located in the quaint village of Intercourse (think Amish Country). We have minimal pending reservations and those we have received have been at rates greatly reduced. For example, I just got a booking for the 4th of July weekend for $100/nite. A year ago, the same rental was for $350/nite. The guest house is for a complete home rental with 4 bedrooms, 3 baths, and sleeping for 16.
Needless to say, I need to do something. I'd love some suggestions: sell it, rent it out, lease purchase, owner financing, etc. We've put a lot of money into the home and will probably need to sell it at a loss or break even. It's our first AirBnb and we learned tons, but it seems like it's time to do something else.
@Dan West Have you thought about renting the home out for a long term lease? Would your market allow for you to set your rent price at an amount that is at minimum equal to your monthly mortgage?
@Dan West Have you thought about renting the home out for a long term lease? Would your market allow for you to set your rent price at an amount that is at minimum equal to your monthly mortgage?
Good suggestion, Carleton. That is one of my considerations. The problem is that local rental income for an entire home is less than the cost of the mortgage and upgrades we put in place when we converted to an Airbnb. But, it's not off the table. Thanks for the input!!
I have owned a successful AirBnb for a couple years. We have minimal pending reservations and those we have received have been at rates greatly reduced. I need to do something.
it's tough when only one way works and it snags. I realize the house is large, but could you rent it as a medium term furnished rental? Travelling professionals or people in between a sale and re-purchase may need a few months at a premium to standard unfurnished rental. Mayne throw up a couple Craigslist ads to test.
I'm in a similar boat to yours and am lease optioning the house. Large 6/3 we are renovating and going to rent as a sober living house by the room but with professional mgt entity that specializes in that space. Carrying costs are $1900/mo.
Maybe offer a master lease for your monthly nut to someone that can worry about subbing it out to make a spread? Vet any ML or LO Optionees / tenants well.
Hi Dan, so sorry to hear that, its realy hard now for short term rentals, i would suggest if you can pull out a line of credit for your property, if the morgage ltv is less then 75%, this way you can survive & pay interest only when you use the money.
Any way for you to hang onto it? Maybe take the cashflow from other units you own? Pay the expenses from your current job (if you have a w-2 source). I'd try everything before selling at a loss. COVID-19 restrictions will eventually go away and it would be a shame that you disposed of a good property for AirBnB.
Thanks, everyone for your suggestions. They give me something to noodle on. I'm convinced there is a way. I just need to determine which way makes the most sense. I was able to get a month-long guest for June, which is awesome.