Fractional Ownership or Airbnb? Which would you recommend?

Question

So we originally planned to move into the home then decided to keep our daughter in her current school. We have renovated this beautiful 4 bed, 3 bath Pool home on Amelia Island, it's a bike ride away to the beach, 7 minutes by car. Hence we do not want to sell it because even with the renovations, it is a great value with equity already.

We are furnishing it with a beachy theme with the intent to airbnb the place to cover some of the costs. Now I am thinking twice especially since we reside 6 hrs away in another state.

I see fractional ownership advertised on realtor.com and thought that a family who also have a vested interest in the property would take better care of the home than the occasional vacation tenant.

If you have any experience ( with fractional ownership - or airbnb remotely) that you wouldn't mind sharing with us - we would greatly appreciate it.

Sweet summer to you!

Sandy & James

John Underwood · Answer

I would pay a PM to rent it before selling off a portion and I hate the thought of giving away money to a PM when it is easy to remotely manage a property with the tools that VRBO and Airbnb provide.

Glenna Wood · Answer

I would skip fractional ownership for several reasons. They are hard to sell. If I need to replace a coffee pot, I wouldn't want to have to consult anyone else about that expense or the brand or size or style etc. How do you agree on big expenses like roof redos? The fractional ownerships I'm familiar with allow any owner to rent their weeks. So now you would REALLY have no idea who's in your house. Even if you agree as owners to not rent doesn't mean that they don't have family members who are careless good balls. I shudder at the thought of "who shot John" conversations over wear and tear damages. But Amelia Island is a nice residential beach area with a classy reputation I agree with @Sarah Lorenz that better houses get better clients. If I wanted to get income on a house I was fussy about and used alot, I would find some snowbirds who to rent 2 months minimum. Be at the house to give them a personal tour and check them out. By putting eyes on, you develop a cordial personal relationship. Many retirees have pets though. Through the years I've had less trouble from furry guests than the juice box or solo cup crowd. Bottom line if finding your kitchen stuff or furniture rearranged every time you go to the house bugs you, then STR is not for you for that house.

Wendy Schultz · Answer

I would opt for short term renting over fractional ownership too. Trying to get several owners to agree could be more headaches than it's worth.

Sean McDonnell · Answer

Airbnb and VRBO both have tools where you can sync the calendars pretty easily. This way you wont have to pay for another company to manage it. I vehemently agree with the consensus from most above. Amelia Island is a great vacation spot with a loyal population of tourists that dont want to go anywhere else. I feel like you owe it to yourself to at least try out the vacation rental market. It could be a game changer for you!

Paul Sandhu · Answer

@Sandy Sciales Running a STR is like running a resort. You are the concierge, housekeeping, maintenance, repairman, marketing executive, tour guide, accountant, and host; to name a few things. I've been a first responder too, had to call 911 on an unconscious and unresponsive drug overdosed tenant.

Luke Carl · Answer

@Paul Sandhu nailed it. 2 hours till show time.

Josh Bakhshi · Answer

How would the numbers look if you sold it 100%? Do you make a profit? If so, then you can take that money to buy something that generates more and use that money to rent a hotel by the beach. You don't have real estate to cover most costs, you do it to make money

Paul Sandhu · Answer

I've had good results with Craigslist. Those sites like Airbnb VRBO and HomeAway get me about 6 phone calls a year. I turn those rentals away. But my renters are refinery contractors. Big burly guys that chew tobacco and drive jacked up 4 wheel drives, smell like diesel fuel and have neck tats. They work on those large erections of steel you see at a petrochemical refinery. Fitters, welders, boilermakers, sparkies, spectors, and other people in this field.

Paul Sandhu · Answer

Don't really like the concept of fractional ownership. It's like 2 coyotes and 1 sheep voting on what to have for dinner, and you're the sheep. Airbnb can be done from a distance. The main things are housekeeping/restocking between vacancies and having a handyman/repair guy. The Ayatollah of Rock and Rolla Reverend @Lucas Carl is authoring a book about this, but not right now. He's drinking beer before seeing Iron Maiden at Bridgestone Arena. I'm getting ready to run my paper route. 3 new stops today.

Account Closed · Answer

Airbnb, VRBO, FlipKey, HomeAway