AirBnB vs Traditional rentals

[John B.]

This is just a general question, who prefers AirBnB to rental properties? What are some key things to know about before starting an AirBnB? Pro's and Con's? Thanks!

[Jon Crosby]

@John B.. 

You might want to ask this in the short-term rental forum, but just really quickly (as an Airbnb owner).  They are night and day.  

Short-term rentals are much more work and much higher Op Ex as you are paying for everything (cable, lawn, pool, electricity, furnishing, post and pans, linens, etc.) but they also bring in (usually) a much higher gross income.  They are much more of a micro-business then a long-term rental which are arguably more of a 'set it and forget it' model until the lease expires.  

The short-term rental has different cash flow calculations to model against vs long-term and you have to think about making sure you are providing a 5-star experience which drives great reviews which drives higher search results on Airbnb/VRBO which equates to more bookings and thus more revenue....so once again...night and day difference.  : )

Cheers!