The sun is setting on our Florida adventure. We will be moving again shortly for my wife’s work and I will be sad to leave. I love St Pete very much. This place is more vibrant, more beautiful than I ever imagined.
But it is better to go while still waiting more.
So the time has come to decide whether to rent out our Florida house as a long term rental, or whether to keep it as an AirBNB.
When I conducted The Great AirBNB Experiment I wanted to see if my property could succeed as an AirBNB rental. As it turned out, it made a tidy profit even after the mortgage, insurance, taxes, maintenance and cleaning fees were paid. So I know Airbnb works in this property.
I’ve been weighing up the Pros and Cons of AirBNB Guests over long term tenants. Here are my thoughts:
Pros Of AirBNB Guests Over Long Term Tenants
- Guests pay more.
- Listing is free.
- There is less paperwork – no tenancy agreements to sign, no deposits to take and protect.
- Payment by credit card – no chasing a tenant for late rent.
- Guests leave – no evictions.
- Regularly cleaned (since I arrange cleaners).
- Cleaners can keep an eye on the condition of the property, and are more likely to report problems than long term tenants who can have a nasty habit of letting problems (and repair costs) build up.
- If I want to do repairs or redecorate, I can just block a few days out of the AirBNB calendar.
- Should I decide to sell, I’m not locked in to a yearly lease. I can also arrange viewings on vacant days and get in to the property to stage it.
- I can use it for my own vacations!!
Cons Of AirBNB Guests Over Long Term Tenants
- More work up front than renting an unfurnished rental property – but by utilizing my 10 Tips to Automate AirBNB I find the day-to-day running of it only slightly more effort than my regular rental. And the initial set-up work is already done now anyway.
- Some cities prohibit short term letting on AirBNB.
- Higher running costs, since a long term tenant would be paying the electricity/gas/water themselves and I wouldn’t have to employ cleaners and gardeners.
- I am at the mercy of AirBNB itself – having read about superhost Kelly Kampen getting blocked for seemingly no reason, I’m reticent to put all my eggs into the AirBNB basket (which is why I am also on VRBO and keep this page too).
Despite these cons, I’ve concluded AirBNB is the way to go. I like AirBNB. You probably guessed that if you’ve been reading this blog for a while. So perhaps the above list is just an exercise in confirmation bias. But for me (aside from the fun I have running my AirBNB) the main benefits are that I know I won’t get stuck with a bad tenant for months on end as I go through the courts trying to evict them from overseas, and the idea of a holiday home to come back to in Florida really appeals to me!
If you decide to go the AirBNB route, there is one thing to know. With rental properties you are providing a commodity. With AirBNB you are providing a service. Its crucial that you appreciate the difference.
What would you do in my situation? Do you also have a preference for AirBNB Guests over long term tenants? Have you converted a rental into an AirBNB, and how did it work out? Drop me a note in the comments below.
Thanks for reading.