Originally posted by @Tehane Gallimore:
Some people are likely going to laugh at me when I post this, but we own and operate a highly successful AirBnB out of Beech Mountain, NC. We are super hosts, award winners on Booking.com, and consistently are averaging 70% occupancy rates year round. Business is booming and we are cash flowing insanely well and we were super excited about how well things were going, however we have been considering selling it as an investment property to other investors. It might sound silly to some people, but I never intended for the home to become a second almost full-time job, but lately it has felt that way and we are getting a tad burnt out. All of the full service property managers we have spoken to will charge 25% to 30% commission plus don't appear to generate the same revenue so it wouldn't make sense to go that route because we would barely be breaking even for slower months. We feel a bit boxed in with our options so it has been a bit of a struggle. We would prefer to sell the home and reinvest in another BRRRR property which has worked really well for us. The cash flow is no where close to what we are making with the AirBnB, but it is way less maintenance and work once you have solid tenants in place. Not sure if anyone else has felt the same way and if you decided to keep at it or sell off your property? Thanks in advance.
There is quite a bit of good advice posted already, just want you to know I share your sentiment and then some.... We purchased our first STR in 2015, one year prior to the state of AZ legalizing STR's statewide, meaning local counties & cities could not disallow them. We purchased three additional properties shortly thereafter. This legislation created a huge demand for STR's, which grew from 900+ to over 4,000 in two years! Corporations bought high end homes and have been busing droves of people into neighborhoods without regard. The few ruining the business for the many. Then came the "noise" and the local money applying pressure to local constituents. Municipalities have now instituted fines (up to $2500) for police visits, not imposed on the guests, but the owners. Other legislation has limited guests to 6 adults, plus their children. Two of our homes host over 12 adults. On the docket is the attempt to repeal the 2016 ruling. Our properties are still highly profitable as you stated Tehane, but we are starting to see price erosion, partly due to the legislation, partly due to these corporations. The business has been a "side hustle" for nearly six years and has been very successful, but this noise is becoming overwhelming. Not only do we deal with guests, but now we respond to neighbors who complain about noise, lights, or whatever else they feel is their "right". The high season is in full swing, and so comes the annual burn out, which now feels like a bonfire. The motivation has moved from monetary gain to lifestyle loss, and frankly lifestyle is winning. In summary, we are looking to divest from our two larger properties, seeking solace in remote areas to re-invest. Point being, all good things must come to an end for one reason or another, and while many of our fellow BP-er's and operators are "crushing it" now, it is important to always have an exit plan. I commend you for choosing to do so. Lifestyle wins!
