Airbnb in Seattle area

[Renata McCulloch]

Good Morning, I am looking at a possible deal which could be a nice Airbnb. Has anyone here started renting their house as an Airbnb? Wanting to know the process of getting started and if this is really that profitable. Thank you in advance. Renata M

[Graydon Manning]

Hey @Renata McCulloch, I rent my basement MIL on Airbnb with good results. It is definitely more profitable than it would be if I were just renting it monthly, but that is largely because I manage the listing, clean it, and take care of any issues that pop up. If I were hiring management and cleaning it would break-even with renting it conventionally. If I didn't live upstairs, I'd just rent both units conventionally and avoid the headaches that come with short-term rentals.

Generally I would say your deal needs to be in a prime location with solid demand for short-term rent to make sense. For Seattle- no doubt in downtown Seattle, Queen Anne, Ballard, etc., the huge premium for a short-term rental make the economics a lot sexier vs conventional. In even a semi-non prime neighborhood the premiums start to decrease quickly.

Good luck!