All Forum Posts by: Tyler Work

Hey @Aaron K. not disagreeing with you at all, but could you elaborate on why you think renting short term causes more wear and tear vs. long term?  I assume this is because there is the assumption that there will parties and disregard for the property?  Would love to hear the landlords perspective on this point.  Thanks! 

Hey @Account Closed !  By "maintaining responsibility for marketing & bookings" do you mean you want to be messaging guests and managing the listing, and setting prices on sites like Airbnb, VRBO, etc?  I know of some great automation tools that allows you to do this remotely if you'd like me to share shot me a pm.  

Thanks @James Carlson

To be honest it's been a win-win for us and the owner.  It is definitely not for everyone, but our agreement spells everything out and ensures that all parties are properly insured.  The owners love it because their property is professionally cleaned 5-10 times per month, all minor maintenance paid for, little to no appliance use, and they make a little above market rate.  They don't have to deal with a potential bad tenant running their property in the ground and we have the freedom to get creative and host the property like it was our own.  Out incentive to keep the property looking amazing is the need to keep good guest reviews and keep good relationships with our owners.

There is one little known insurance option I found pretty cool that has recently come out called Safely.   They provide premise and liability coverage AND do background checks on each guest.   

@Craig Curelop you might have some valuable insight for @Philip Arthurs on this one?

@Daniel Luedtke you can also add a commercial policy to cover housekeepers, support staff, etc if your management company doesn't cover them.  The big reason for special insurance is technically when you short term rent this is more of a commercial business operation vs. a standard rental.  Your management company likely does not insure your premises or your personal liability.  

Hey @Ram Srinivasan I bought my 1 bedroom and turned it into a full time Airbnb listing and it has been a great investment.  There are risks including financial (no guaranteed income) and liability (covered by the right insurance) but you can mitigate them by learning the ropes or getting a property manager.  It is a very viable and credible investment strategy, check some of the other Airbnb forums on BP and you'll see there is tons of info on how to run one and where to invest.  

@Cosmo Iannopollo you probably won't have this problem but I took on some management clients that owned very average properties - i.e. nothing to differentiate them against all the other listings rented in the area.  I wish I would have held out and turned away 5 clients to find 1 that had a really sweet place.  I've found that potential guests are very picky in crowded markets, and the nicer the property the better it does (although you can make an average property look awesome with the right decor and furnishings).  Location actually plays less of a role in Denver because so many travelers have never been and have no idea what neighborhoods are good and which are bad, so I think they mainly rely on photos.  Obviously if you're water front or beach front that is a completely different story, in those cases location is everything!   

@Zac Newell check out @James Carlson 's website, he has a pretty comprehensive list of regulations in the Denver area.  From what I gather, rentals of < 30 days is illegal in Arvada and Westminster.  You could go through the list of every city in the metro area, but in my opinion the point is moot since there is little travel demand that far outside the city.  I ran a test property in Castle Rock and it was a complete failure.  On the other hand, Colorado Springs has zero regulation and welcomes short term rentals with open arms, so you could consider looking south.  

Even if STRs were legal in Denver for investors, if you are open to investing anywhere, I would look elsewhere.  There are plenty of other cities that have much lower real estate prices and healthy travel demand.  Just my 2 cents, hope that helps! 

Hey @Alex Johnson you could consider buying a short term rental property if cash flow is your goal.  If you're willing to do you homework you can make much more than a long term rental.  Just a thought! 

Hey @Cosmo Iannopollo all good things on this thread!  My 2 cents:

-tax considerations - some municipalities charge "lodgers tax" just like a hotel, some dont.  Do your homework.

-rules/regs - this one is huge, already been address on the thread.  Start with a google search or post a search in the Airbnb community forum or on Bigger Pockets.  Someone on here is bound to know the regulations 

-dealing with neighbors - In Denver this is the #1 way to get your license revoked.  In metropolitan areas I think it is a worry that STRs change the "character" of the neighborhoods.  I always like to be as upfront as possible and tell your neighbors exactly what you're planning to do.  Better to find out before you buy the place that they hate Airbnb than after you've closed and spent a ton of money.  

Lessons Learned:

-Be extremely selective as to the location of the property (I took on some regrettable properties when I first started)

-If you are self-managing, be prepared to make a lifestyle change with multiple units

-Educate yourself as much as possible before you start hosting so you don't make costly mistakes.  I missed out on thousands in revenue when I first started by using Airbnb's smart pricing tool

-Put a lock box somewhere on the property for when your digital lock runs out of batteries or malfunctions

Hope this helps!