Investors are going to Airbnb for cash flow in Austin

[Conner Olsen]

Medium-term rentals are a great way to increase revenue in Austin. By furnishing your property and listing it on Airbnb for 30+ days you can double your rent. Supply of medium-term rentals listed on Airbnb has increased by 56% over the past year from 107 to 169. As home prices continue to rise and rents lag, I expect to see more MTR come to the market in the future.

[David Orr]

I think doubling the rent is probably overstating it, and you also have to account for increased vacancy and other costs.  We have one studio that we rent this way on Airbnb, and another that we considered doing but decided not to.  For a studio that we can rent long term for $1100, we can get about $1650 renting it monthly on Airbnb.  Another one that rents long term for $950, we can get about $1350 monthly on Airbnb.  Keep in mind the prices you see on Airbnb when browsing listings include a lot of fees that Airbnb takes, so the owner doesn't get all of that.  And there there is also cleaning and turn-over costs and added vacancy that you have when renting it this way.  

So, it's definitely worth considering doing, but it's not a slam dunk.