Air BnB, et al...
- Thread starter RoseRed
- Start date
Auntie Biache'
Well-Known Member
I haven't, and would never do it when sharing the same common area's with strangers. Too many creepazoids out there.
Goldenhawk
Well-Known Member
Go for it!
We've been running an AirBnB in St Marys for about 5 years now. AirBnB really treats its hosts very well, and we've also been treated very well when we traveled as guests.
We've been AirBnB "Superhosts" for three years running. With over 100 reviews, our rating is over 4.9 out of 5 stars. We take great pride in providing top-notch service. We have a lot of repeat customers - who tell us we've got the best AirBnB in the area, and they're always happy when our calendar is open for their return. We're often booked over 90% of each month.
Yes, we do pay taxes on the income. So the feds, state, and county each get a cut. We run it under a separate LLC with Schedule C reporting.
We have had a few minor incidents of damage, not malicious but just guest mistakes (soiled sheets, minor furnishing damage). We did not report them to AirBnB. But AirBnB does provide a large insurance coverage for hosts, provided you follow all the rules and policies.
Some recommendations:
You'll do a lot better if you provide a space that is fully devoted to your guests, rather than shared with your family. A separate entrance and living spaces means you don't have to interact with them constantly, other than to check them in and out. And you'll be able to host when you are not in town. Since it's an upstairs portion of your home, you might need to add a lockout door, and an outside stairway with 2nd level exterior door. But you'll get more guests (people want their own space) and better reviews.
Provide an electronic keypad lock. That way guests can check in without you being present. We program ours to our guest's cell phone last four digits, which makes it easy for them to remember. Since we reprogram it for each new guest, there are no issues with security against previous guests. You can buy locks that you can program remotely, but we're suspicious of depending too much on the internet to keep things running. A few in-person button presses isn't a big deal.
These days, provide good internet access, and to really make people happy, give them a Roku on which they can log in with their own Netflix or YouTube TV account.
Even though "BnB" stands for "bed and breakfast", you don't necessarily need to provide breakfast. Many of our guests don't care about the food at all. But be very clear in your description what you're offering.
However, providing food prep facilities increases your guest options. We have a small kitchenette with a microwave and fridge and small sink and dishwasher, but no stove. (We also offer a toaster oven and portable induction cooktop.) That opens it up to long-term guests, and we have had many people stay for several months (one guest stayed nearly 9 months). We really like that because we don't have to clean as often; they are responsible for daily maintenance. We only have a deep clean when they check out.
Get some NICE photos taken. AirBnB offers this as a service, if you don't have the equipment. Don't just take cell phone pics. It should look like those glossy hotel brochures; you're selling your space from the moment they click on your link. And for heaven's sake, stage it well.
Make sure the photos reflect reality. If it's in the photo, it better be there when they arrive.
Buy plenty of linens and towels. Get a LOT of sets, at least 2-1/2 if not 3 times what you will need for a maximum visitor rental. (For example, if you can host a max of six people, get 18 sets of towels, and three sets of linens.) You want to be able to flip the space over quickly without having to wait for laundry to run several loads, and you WILL end up with damaged linens and towels over time, so you want plenty of spares. Oh, and get high-quality stuff - it probably won't be mentioned in the reviews, but you WOULD get bad reviews for cheap stuff. All those little touches add up to happy guests and good reviews. (Pro tip: you can find low-price but good quality stuff at Ollies and other local bargain stores, for WAY cheaper than the main stores.)
Price it low to get started. Rapidly getting a stack of five-star reviews will take you a long way to building a successful brand. There's nothing in the reviews or ratings that will show your pricing at the time of the review. Then after a few months you can bump up your rates to the local average and make a bit more money. But keep rates low enough to keep the space filled - you make more money in the long run if you're constantly booked at a lower rate than occasionally booked at a high rate.
Think carefully about the balance between daily rates and cleaning fees (one time tacked on each rental). Many people are unhappy with low "teaser" rates but a high cleaning fee. You'll lose short-term customers that way.
You can and probably should be choosy on who you accept as a guest. If you're too choosy you'll hurt yourself in the rankings, but if you're letting someone onto your property and into your home, you want to be safe and secure. (For example, we rejected one guest who asked if it was okay if she used our room for a boudoir photo weekend with multiple clients. Uh, no. And we have rejected a few suspicious booking requests that sounded like they might be involved in human trafficking or other questionable things.)
You have to be willing to accept renters you might not choose to go to dinner with. We're unhappy about a lot of trends in our society, but we've hosted literally all kinds of people, some of whose lifestyles are offensive to us. Our welcome package makes our religious leanings quite clear - we're not ashamed of our own moral positions. But we treat them right, no matter whether we like their life choices. And they have all been friendly people and respected us in return. Hopefully in the process, we let them see that people labeled like us can be decent folks too.
I have a lot of things to say (lessons learned) about the booking system and website, but that's another day's conversation.
So go for it, and we welcome the competition!
We've been running an AirBnB in St Marys for about 5 years now. AirBnB really treats its hosts very well, and we've also been treated very well when we traveled as guests.
We've been AirBnB "Superhosts" for three years running. With over 100 reviews, our rating is over 4.9 out of 5 stars. We take great pride in providing top-notch service. We have a lot of repeat customers - who tell us we've got the best AirBnB in the area, and they're always happy when our calendar is open for their return. We're often booked over 90% of each month.
Yes, we do pay taxes on the income. So the feds, state, and county each get a cut. We run it under a separate LLC with Schedule C reporting.
We have had a few minor incidents of damage, not malicious but just guest mistakes (soiled sheets, minor furnishing damage). We did not report them to AirBnB. But AirBnB does provide a large insurance coverage for hosts, provided you follow all the rules and policies.
Some recommendations:
You'll do a lot better if you provide a space that is fully devoted to your guests, rather than shared with your family. A separate entrance and living spaces means you don't have to interact with them constantly, other than to check them in and out. And you'll be able to host when you are not in town. Since it's an upstairs portion of your home, you might need to add a lockout door, and an outside stairway with 2nd level exterior door. But you'll get more guests (people want their own space) and better reviews.
Provide an electronic keypad lock. That way guests can check in without you being present. We program ours to our guest's cell phone last four digits, which makes it easy for them to remember. Since we reprogram it for each new guest, there are no issues with security against previous guests. You can buy locks that you can program remotely, but we're suspicious of depending too much on the internet to keep things running. A few in-person button presses isn't a big deal.
These days, provide good internet access, and to really make people happy, give them a Roku on which they can log in with their own Netflix or YouTube TV account.
Even though "BnB" stands for "bed and breakfast", you don't necessarily need to provide breakfast. Many of our guests don't care about the food at all. But be very clear in your description what you're offering.
However, providing food prep facilities increases your guest options. We have a small kitchenette with a microwave and fridge and small sink and dishwasher, but no stove. (We also offer a toaster oven and portable induction cooktop.) That opens it up to long-term guests, and we have had many people stay for several months (one guest stayed nearly 9 months). We really like that because we don't have to clean as often; they are responsible for daily maintenance. We only have a deep clean when they check out.
Get some NICE photos taken. AirBnB offers this as a service, if you don't have the equipment. Don't just take cell phone pics. It should look like those glossy hotel brochures; you're selling your space from the moment they click on your link. And for heaven's sake, stage it well.
Make sure the photos reflect reality. If it's in the photo, it better be there when they arrive.
Buy plenty of linens and towels. Get a LOT of sets, at least 2-1/2 if not 3 times what you will need for a maximum visitor rental. (For example, if you can host a max of six people, get 18 sets of towels, and three sets of linens.) You want to be able to flip the space over quickly without having to wait for laundry to run several loads, and you WILL end up with damaged linens and towels over time, so you want plenty of spares. Oh, and get high-quality stuff - it probably won't be mentioned in the reviews, but you WOULD get bad reviews for cheap stuff. All those little touches add up to happy guests and good reviews. (Pro tip: you can find low-price but good quality stuff at Ollies and other local bargain stores, for WAY cheaper than the main stores.)
Price it low to get started. Rapidly getting a stack of five-star reviews will take you a long way to building a successful brand. There's nothing in the reviews or ratings that will show your pricing at the time of the review. Then after a few months you can bump up your rates to the local average and make a bit more money. But keep rates low enough to keep the space filled - you make more money in the long run if you're constantly booked at a lower rate than occasionally booked at a high rate.
Think carefully about the balance between daily rates and cleaning fees (one time tacked on each rental). Many people are unhappy with low "teaser" rates but a high cleaning fee. You'll lose short-term customers that way.
You can and probably should be choosy on who you accept as a guest. If you're too choosy you'll hurt yourself in the rankings, but if you're letting someone onto your property and into your home, you want to be safe and secure. (For example, we rejected one guest who asked if it was okay if she used our room for a boudoir photo weekend with multiple clients. Uh, no. And we have rejected a few suspicious booking requests that sounded like they might be involved in human trafficking or other questionable things.)
You have to be willing to accept renters you might not choose to go to dinner with. We're unhappy about a lot of trends in our society, but we've hosted literally all kinds of people, some of whose lifestyles are offensive to us. Our welcome package makes our religious leanings quite clear - we're not ashamed of our own moral positions. But we treat them right, no matter whether we like their life choices. And they have all been friendly people and respected us in return. Hopefully in the process, we let them see that people labeled like us can be decent folks too.
I have a lot of things to say (lessons learned) about the booking system and website, but that's another day's conversation.
So go for it, and we welcome the competition!
Goldenhawk
Well-Known Member
Sure thing.
NorthBeachPerso
Honorary SMIB
I'm going to add to Goldenhawk that if you go the official BandB route that you have a bunch of requirements imposed by the State. Doing a short term rental under VRBO is easier.
I don't know about the other SoMD jurisdictions but North Beach requires the VRBOs to be licensed and inspected under its rental statutes. That is actually to make sure the owners submit the 5% Lodging Tax to the County, NB gets 4.5 of the 5.
I don't know about the other SoMD jurisdictions but North Beach requires the VRBOs to be licensed and inspected under its rental statutes. That is actually to make sure the owners submit the 5% Lodging Tax to the County, NB gets 4.5 of the 5.
Goldenhawk
Well-Known Member
Note that AirBnB now collects MD sales (and lodging tax where applicable) from tenants, as detailed here:
Per State Bill SB533
NorthBeachPerso
Honorary SMIB
Didn't know that. I stopped caring about such things several months ago. I know the Beach had a hell of a time getting the operators to comply. Some thought they were being slick and denied doing the rentals. Too bad there were screenshots of the ads.
Goldenhawk
Well-Known Member
The cool thing about AirBnB is that you do have total control over when it's rented out. We do it all the time - block off times we don't want anyone there, because family's in town, or we won't be around to clean it before the next guest arrives, etc. Very very flexible.
Just like Uber is not a mechanism for someone to just 'make a couple $$ using their car', AirBnB is not that great of a tool to share your primary residence.
In attractive locations, people have turned it into a thriving business. They buy properties to convert, hire housekeepers etc. All the joy of running a hotel, except it's spread out across a neighborhood.
You don't want to have anything personal in the unit. Every towel is bought by the rental LLC, every matress is owned by the LLC. Everything is either depreciated or a consumable. The laundry detergent, cleaning supplies etc. With all the base folks who come for longer assignments, a well run AirBnB should be a year around revenue source.
In attractive locations, people have turned it into a thriving business. They buy properties to convert, hire housekeepers etc. All the joy of running a hotel, except it's spread out across a neighborhood.
You don't want to have anything personal in the unit. Every towel is bought by the rental LLC, every matress is owned by the LLC. Everything is either depreciated or a consumable. The laundry detergent, cleaning supplies etc. With all the base folks who come for longer assignments, a well run AirBnB should be a year around revenue source.
My next door waterfront neighbor built an apartment over her garage and turned her home in a BnB rental. Her Air BnB web site is impressive and she's quite the talented artist, chef and interior decorator too....and I know she's done very well $$-wise with it, despite what I thought were rather high prices. She's been doing it long enough, with such great reviews, that she's now booking a lot of the year with returning/repeat customers. She provides meals if they are bought as part of the package. The fact that she lives on the same property helps keep management of it under control.
NorthBeachPerso
Honorary SMIB
If it's run as a business the owners can do ok. The problem is with "hobby" operators, at least here in the Beach.
And my God, they charge Ocean City rates and get them.
About the LLC, I've noticed that more and more people are listing their primary residence as owned by an LLC. I don't know why but I'm assuming that there's some tax benefit, maybe depreciation. How that then plays into the Homestead Exemption I don't know.
And my God, they charge Ocean City rates and get them.
About the LLC, I've noticed that more and more people are listing their primary residence as owned by an LLC. I don't know why but I'm assuming that there's some tax benefit, maybe depreciation. How that then plays into the Homestead Exemption I don't know.
I seem to see more trusts than LLCs. Most of that has to do with estate planning and the avoidance of probate.
Owning a home through a corporate entity can be an effort to protect the asset against litigation. If you own a share of a corporation or an interest in a LLC together with others and you get sued over something that has nothing to do with the actions of the company, the plaintiff can't get to your house. Even if you get sued and lose, the only thing the plaintiff can get is a 'charging order' that would entitle him to the proceeds of the sale from the stock or membership interest. As there is a lot of flexibility in how an LLC is structured internally, there may not be any value to the share by the time it gets sold. Just registering a LLC using legalzoom won't give that protection, it has to be run as a business with separate books and its own business activity. For someone used to running a business, taking care of the additional formalities of owning your house through a corporation, family limited partnership, trust etc. is trivial.