The Rise of Airbnb and Short Term Rentals

The Rise of Airbnb and Short Term Rentals comes directly from the unfair Landlord and Tenants Laws and issues.

We as real estate investors, no longer have control of our own properties.   Every time that I turn around there's a new law being put into place, new licensing requirements and new taxes being put into place that directly cuts back on the amount of money I can make with my rentals.  

I started to invest in real estate in 2000 and I have seen so many changes happen that it makes my head swim.   When I got into the real estate business, I was making good money, and I was able to accumulate a number of properties that were producing  great positive cash flow, and from that cash flow and refinancing of my properties, I was able to purchase more profitable real estate.

Now in 2018, all of my fellow real estate buddies are all struggling to  make their properties profitable.  In many cases my fellow investor buddies are selling off their inventory so that they don't have to abide by upcoming rental  licensing by-laws.   

They prefer to sell their properties than have to fight through that maze of unnecessary red tape and put up with unnecessary inspections along with the increase in property taxes and utility costs.

Plus we as landlords are only allowed a certain percentage a year to raise our rents, yet our expenses far exceed the amount we're allowed to ask for.   All in all it's becoming too difficult to run a  profitable real estate business.  

So what does one do?   Well there's always another option!!  Turn your homes into short term rentals.  Now that is a story within itself and one that I'll go into more detail in my next blog.

I'll discuss both the pro's and con's of running a short term rental and why that also may not be as profitable a business model as you may think.

In the meantime,

Happy Investing,

Maria Rekrut