Exploring Houseboat Airbnb Idea

[Natalie Allen]

Hey ther BP! I always knew I wanted an Airbnb. I worked in fancy restaurants & nice hotels for years & would love a piece of that pie. After visiting a few we came across a houseboat rental. The house was terrible & smelled like death (and i grew up on boats so I know it was not a normal houseboat smell). Dispite all that is was the most relaxing experience!!! I’m considering this as an airbnb strategy. In indiana you can’t own property on the lakes but you can have a houseboat slip. There are only a handful of them available at the lake we like to visit. I’m wondering what I should consider when running numbers & longevity for this? Slip fee, insurance, cleaning companies, competition,seasons & financing options are things I’ve considered. There are so mamy boats available that just need updates.

[Michael Haas]

@Natalie Allen definitely! The main takeaway is STR's are higher risk and you really want your STR's to have multiple uses in case something changes. There's

1. Platform Risk: You're dependingon VRBO and Airbnb primarily for guests. If they change their algorithm so your listing isn't favored, or change their fees so you have to pay more to list, your margins will shrink real fast.

2. Political Risk: These types of rentals are EXPLODING, and although there isn't a lot of legislation around them now more laws are coming. Definitely want to be aware that the rules are ever-changing.

Like I said, we have 3 STR's and totally believe in the model, just something you need to go into eyes-wide-open!