If you look closely, you will see this is a picture of a massive sandbox filled with a variety of residental and commercial buildings.
This skyline is very typical of many different cities around the world. Today we are finding residental owners renting out their homes through short-term rental companies like Airbnb.
What is Airbnb? (According to their official website)
Airbnb, Inc. is an American company which operates an online marketplace and hospitality service for people to lease or rent short-term lodging including holiday cottages, apartments, homestays, hostel beds, or hotel rooms, to participate in or facilitate experiences related to tourism such as walking tours, and make reservations at restaurants.
Airbnb goes on to mention it does not own any real estate.
Individual homeowners own the real estate that Airbnb uses in their business model.
Airbnb gets all the headlines Good or Bad.
You have seen the headlines where someone has trashed an owner’s home, and Airbnb steps in to clean up and fix the owners homes because of a fraudulent guest. I know for a fact that this type of headline makes for great press, but there are millions of Airbnb guests that never cause one issue.
For the most part, Airbnb does their vetting of the guests before they are allowed to stay.
Being part of the short-term rental and short-term vacation rental marketplace takes more than just signing up with Airbnb or HomeAway or Vacation by Owner services as homeowners you need to be a good neighbor if you want your business to thrive. Yes, you are running a small business.
Understand as homeowners you are at risk for not following the rules surrounding your property and putting your property into a short-term rental arrangement; the penalties can be expensive.
Under Attack – Short-term Rental Homeowners
Homeowner Groups are Kicking Sand in the Face of any Homeowners not playing by the rules.
“Short-term rental hosts could face massive fines”; according to a blog post by Canadian Press, July 19, 2018.
Canadian press goes on to say; Homeowners groups in British Columbia will soon be able to fine owners or residents up to $1,000 a day for defying the corporation’s bylaws on short-term rentals.
The B.C. government says the regulations for the so-called strata corporations will be changed as of Nov. 30 to help the associations address short-term rentals, such as those arranged through Airbnb and other vacation websites.
Zoning ByLaws are Clear
As an owner of a short-term vacation rental, we have found that most towns and cities have very clear zoning bylaws regarding short-term rentals and short-term vacation rentals.
These town and cities’ staff and departments are friendly and knowledgeable in providing you with the correct information on zoning. It is worth a trip to your local town or city hall and administration offices.
Short-term rental and short-term vacation rental people only get themselves in trouble because they are not doing their homework.
Questions to Ask Yourself to Get Clarity
Are you doing your due diligence before renting your home in a short-term rental program?
Are you checking out the zoning bylaws in each town or city you are renting out your property as a short-term rental?
If you are not following the zoning bylaws than why get upset when charged with a monetary penalty?
Journey to a Rewarding Payoff
We have been a short-term vacation rental business owner for over 16 years, and the payoff is incredible versus traditional revenue generated by long-term rental. The two significant payoffs are:
- Short-term Revenue can be between 2 1/2 and three times more than a long-term month to month revenue
- The number of nights of stay tends to be half on the nights of long-term rental, and yet the income tends to be much higher.
It may be your home, but you are always in someone else’s sandbox; know and play by the rules, and the rewards will be exhilarating.
Listen to my guest podcast regarding short-term vacation rental and perhaps I can get you exhilarated into adding short-term vacation rental property to your financial portfolio.