AirBnB in Medium Size Multifamily Buildings?

[Cassidy Burns]

Hi BP,

I'm dabbling with the idea of trying AirBnB in 2 of my units that I just turned over in my 32 unit apartment complex.

Has anyone had any experience with this? 

Details on the building: 

-1 Mile from Greenbrier Golf Resort in WV ($260/nightly average)

-Tons of wedding venues / company retreats that occur at the Resort.

-32 Units, broken into four 8 unit buildings.  

-1 Bed Rent: $500/month

-2 Bed Rent: $600/month

-C Class apartment building which we are doing a value add too.

My Concerns:

-C Class apartment building

-Don't want the Vacationers to have a bad stay and then leave bad reviews on AirBnB Host account for future investments.

-Want to make sure that current tenants are happy and not disturbed.

-A little more management from a cleaning/ turnover perspective.

-More traffic through parking lot.

Benefits: 

-AirBnB is suggesting $100/night for the 1 bedroom units.... ROI will be much higher.

-I am predicting that there will always be people who would rather stay 1 mile away from the resort during these events to save $100-$200/night on their stay.

-Allows more of a budget to make units a little nicer.  

-I will be doing my Cash out Refi / repositioning in February 2021 of this building. Will banks loan differently if % of NOI is short term rental over long term rental?

Sorry, a lot of questions / info there.  BUT, interesting topic.  Lets get some good ideas in her! 

Thanks in advance.

[Jingru Sui]

My company is actually doing this in Columbus OH. What you can try to do is to turn maybe one whole building into short term. or at least try to keep the units your want to do short term in 1 building. the obvious benefit is you can try to minimize impact to existing long term tenant. also the units might be able to share Wifi ... you know. There're defiantly more turn over. more drama. and more profit if location works. About your concerns... Our buildings are C class too. We do a total renovation in each units, new floor, new cabinet, new furniture everything. This initial investment will soon be paid off.