My AirBNB Triumph

[Steven Kopstein]

I bought a house in rural Vermont as a primary residence in 1997 for about $125k.  After a few years, I refinanced into a 15 year mortgage.  I lived there for 8 years then moved back to NYC.  Since moving away I have been renting the house to vactioners first through VRBO and Homeaway and then through AirBNB.  Since the house is located near great skiing and not to far from VT's biggest city, Burlington, I've had great success.  I used the proceeds from vacation rentals to completely pay off the mortgage last year and since then to buy a vacant lot next door and to make improvements.  Plus, I get to use the house for my own when I need to escape from NYC.  It's worked out like a dream and I plan on retiring there - and keeping my place in NYC as well - the best of both worlds.

[Steven Kopstein]

MG - Hi- I am able to rent it out about 60-70% of the time.  When I had the mortgage it was pretty much break-even. Now that the mortgage is paid off, it's a source of income.

ML - I manage the booking process, which is pretty easy given that it's all internet based.  I also deal with maintenance issues.  I have a close friend who handles cleaning and check-in/out etc.  One thing I've learned is that you need strong local person to deal with issues that WILL come up no matter what.  Also a reliable cleaning person.

ML-TX, see above.  Also, the house is busy year round because Vermont is a great location - close to 3 major metropolitan areas (NYC/BOS/YUL)  and offers year-round things of interest.  Winter is skiing of course and Fall is leaf peeping - so both of those times are solid for bookings.  Summer is great as well to get away from city heat.  Slower times are Nov (stick season - no snow or leaves to see) and April (Mud season - just a mess and still kind of cold). In May/June we get weddings (in nearby barns.graduations - lots of colleges within 45 minutes of the house.   I try to spend the summers up there myself - it's just really special with great local bakeries/farms/foods, total relaxation with waterfalls and mountains and art/music festivals.

Notes for all - You can easily check Airbnb to see what people are charging in any area and see their calendars to see how booked they are.  I adjust my rates and minimum nights stay required based on seasonal demand.  Also- it took me years to figure out a balance  - but you're best off keeping it neutral and using all white towels and sheets for ease of washing.  Some art but not too personal and not too many objects (cleaning again).  I've rented many Airbnb places around the world so that has helped my perspective on best practices.  I've seen A LOT of Ikea and that gets kind of generic so I avoidd it now except maybe for plates and glasses and silverware.  The furniture is cheap and breaks.

I have a locked "owners closet" so I can put things away for personal use that guests can't get to.  The numbers work especially well if you think of it as a vacation home for yourself as well, which I do,  It's like having a free 2nd home.  People WILL break things so don't leave anything around that you can't let go of/replace easily.  When they break things - just know it's part of the cost of doing business.  Big things should be covered by insurance (yours or Airbnbs)  - small things are part of normal business operations.