Rentals can be a fantastic way to make passive income. So many of our clients are interested in using real estate as a way to gain extra income each month. But is an AirBnB worth the legwork?
When in doubt, turn to a pro-con list:
Pros of Starting an AirBnB:
Diversify your income
Passive income is the dream for many of us. Who wouldn’t like to earn thousands of extra dollars each month while only putting in a few hours a week. Having multiple different revenue streams is a great way to feel financially secure. If you lose your 9-5, you’ll still bring money in each month.
None of the same stressors as long-term rentals
The process is entirely different than long-term rentals. When looking for a tenant to sign a lease, you have to deal with interviews, background checks, collecting deposits, and calling references. There’s also usually a maintenance overhaul required before flipping the property for the next tenant. At the very least, you’ll need to deep clean, patch holes, and apply a fresh coat of paint. None of those stressors are an issue when you rent with AirBnB.
You have the flexibility to make the rental whatever you want. There’s no right or wrong way to AirBnB. You can buy a home specifically to rent. Or simply rent a space in your own home. Some hosts opt to list their homes only while they’re on vacation. Make some extra income while you’re away so you can splurge on that 5-star hotel. We’re also a big fan of only listing your property during surge-pricing times (hello, Kentucky derby!).
Meet interesting people from around the world
If you’re a world traveler, you know that one of the most enriching parts of travel is the connections you make along the way. With AirBnB, you don’t have to travel to Bora Bora to have this experience. You bring it directly to you. Invite interesting guests for a cold drink or fireside chat.
The AirBnB app is sleek and easy to use. It makes it simple to manage your listing and communicate with guests.
Cons of Starting an AirBnB:
AirBnB could lose popularity
There are whispers in the blogosphere of the golden age of AirBnB coming to an end. Confusing check-ins, expensive cleaning fees, and long check-out instructions are making some people think, “maybe I should just get a hotel”.
Strangers in your house
You can vet your guests through their previous reviews, of course. But you can’t run background checks like you could with a long-term lease. Ultimately, it’s still a stranger on your property.
Lots of legwork to get started
Becoming a host requires much more than making up a bed with clean sheets, and taking some photos. There is a long permitting process (read more below).
It takes some work to maintain
You’ll need to deep clean after every visitor and communicate with any new inquiries. If you want your listing to be hands-off income you may need to hire a cleaning company or property manager.
Much more competitive than it was at the start.
When AirBnB first started, there were only a few places to stay in each city. Now, there are hundreds of options on the app… in every town. To stand out you have to find a way to differentiate yourself. You’ll need to add extra amenities or decrease your price to give your rental a competitive edge.
Everything you need to know about starting an Elizabethtown AirBnB (or VRBO):
Check neighborhood regulations
The permitting process can be a bit of a headache. So before you even start with that… make sure your neighborhood allows AirBnBs.
The permit process for Elizabethtown AirBnB is different depending on what part of town you live in.
Unincorporated Hardin County:
No permits are required if your AirBnB lives in unincorporated Hardin County.
Elizabethtown Residential Zones R1-R5:
This area is highly suburban. For that reason, AirBnB hosts are required to live in the home full time. You’re only allowed to rent your house 10 nights per year.
Elizabethtown Residential Zones R6 and C5:
These urban areas have the most flexibility. If your rental is in these areas you’re allowed a non-owner-occupied rental. There is no cap to the number of nights per year the property can be rented.
How do I get an AirBnB Permit in Elizabethtown?
You’ll need to take a trip down to city hall. Fill out an application for a business license. Once you’ve received your business license, head down the hall for a zoning certification form. Once these two things are completed, you’ll be able to start your BnB.
Some cities will require an in-home inspection before granting the permits. This isn’t the case in E-town. No house calls will be made unless a complaint has been filed.
Decide your house rules
When are quiet hours? Will you allow pets? Define your comfort zone in the “house rules” section of your listing.
Create a guide with local favorites
You can guarantee your guests will want your opinion about the best places to dine, drink, and sightsee. Spend a little time creating a list of your personal recommendations. When they ask, you’ll have it handy. It’ll save you time in the future.
This is the fun part! Will your rental have a farmhouse style? Mid-century modern? Revel in the details. Little things like pillow mints or aromatherapy soaps make the difference between a 4-star and 5-star review.