Would you end the lease on great tenant to convert to AirBnB?

[Ryder Meehan]

Let me first say that I'm 3 months into having converting 2 of my 7 apartment unit rentals in Dallas to AirBnB (with a manager in place running things) and so far, it's been 95% great!  We have had 27 nights booked the last 2 months and I went from $650/month to $1800/month gross rent.  I netted an extra $900 on just one unit.  

That said, the previous tenants in those units were easy to decide that I didn't want to renew their leases when they came up - i.e. often late on rent, got dogs when no pets were allowed, left trash around the property, etc.  They were inherited tenants I probably would have raised the rent to nudge them out regardless of the AirBnB conversion.

Now I have 2/1 in the hot Lower Greenville neighborhood of Dallas coming to the end of their lease.  This is a great tenant who always pays on time and is very friendly.  To be transparent, the tenant pays $1150 but the rent boom in Dallas would likely put her at $1400 when the lease renews in September.  If I convert it to AirBnB I estimate renting 25 nights/month at $100/night = $2500/month.  There are an extra $300 or so of added cost as well as furnishing for AirBnB but the numbers look a lot better.  $2200 is much better than $1400, so it seems like it should be a simple choice but I also see an increased risk with nightly rentals and knowing how hard it is to find a great tenant, I hate to let one go.

Has anyone else had to make this decision or have insight to share?  Based on the numbers of my business, I'm thinking to go AirBnB.

[Thomas S.]

I do not understand your problem. Is it the fact that you are not confident with your numbers. If your numbers are accurate, and you are operating a business to make money, this should be a no brainer. I feel you have doubts about your projected profits.

If it doesn't work you go back to renting by the month. You are not letting go of a unicorn. Good tenants are a dime a dozen and easily located through proper screening.