Airbnb/short term rental

[Seth Vendelboe]

I am looking into purchasing a home or condo for Airbnb/vrbo etc. What advice would you have in this process in identifying a quality property, and how would you go about marketing it? I have rental properties currently, and have a property manager so I would look to have someone manage the property as well and would not plan on myself personally managing. I really am looking for the good/bad/ugly about these type of investment properties.

[Nathan Gesner]

Quote from @Seth Vendelboe:

I am looking into purchasing a home or condo for Airbnb/vrbo etc. What advice would you have in this process in identifying a quality property, and how would you go about marketing it? I have rental properties currently, and have a property manager so I would look to have someone manage the property as well and would not plan on myself personally managing. I really am looking for the good/bad/ugly about these type of investment properties.

You need to know what the market supports. What attracts people to the area for short periods of time? Traveling nurses? Vacationers? People coming to see a sporting event? Weddings? 

My vacation rental sits on the side of a mountain, over-looking some incredible geography, and it's 30 minutes from Yellowstone National Park. I know it will attract a lot of attention, but only May - September. A vacation home in the Smokey Mountains or something near Orlando may work year-round. A house in the suburbs of Flint, Michigan may be a bad idea. So you have to know what your market supports and how to cater to that market.

You also need to understand zoning and regulations. Cities are regulating short-term rentals. Neighbors complain about them. An HOA may allow them today and then ban them completely next week. You also need to do some research on AirBnB, VRBO, and other sites to ensure you're not buying a home in an area already saturated with similar rentals.

I recommend you visit the "Short Term and Vacation Rental" forum under "REAL ESTATE STRATEGIES" where you'll get a lot more information on this subject.