NFR Anyone Airbnb hosts on PNWFF?

[NRC]

My wife and I have a detached unit in back of our house that we’re considering remodeling to use as a short term rental. Structurally it’s in good shape, but it would be the full package of gaining permits, running utilities, and redoing the interior to add subdivision and generally make livable. So not a cheap project by any means.

It does look, at face value, like it wouldn’t take too many days per month renting it out as a short term rental (likely thru Airbnb or some such) to cover the monthly financing payback cost. And if you really leaned into getting lots of throughput, maybe you could make some money.

With that in mind, I’m curious to hear the experiences of anyone on here who has undertaken such a project and/or done the short term rental game. Any major pitfalls or bad experiences? Or success stories?

FWIW we are in south Tacoma - not exactly a resort destination, but a nice little neighborhood with pretty decent access to downtown etc.

 

[charles sullivan]

Check with Planning to make sure it is allowed by zoning. Detached structures are not allowed in B'ham to be used as short term rentals. Every municipality is different. Don't spend the money just to find out it's not allowed. Document your communication (e-mail back up).

I have done it in the past. It is work. It is a job of sorts. Air BnB/ VRBO both will give you pointers. Sometimes you can take a class too. Basically, you need it clean. You need to expect people will steal soap and such. It isn't hard though. You meet nice people. You sometimes don't meet the guests at all. I live near the airport. I had more people that I did not meet than those that I did. I think that is abnormal.

You should get a rider on your insurance for it too.

 

[NRC]

Check with Planning to make sure it is allowed by zoning. Detached structures are not allowed in B'ham to be used as short term rentals. Every municipality is different. Don't spend the money just to find out it's not allowed. Document your communication (e-mail back up).

I have done it in the past. It is work. It is a job of sorts. Air BnB/ VRBO both will give you pointers. Sometimes you can take a class too. Basically, you need it clean. You need to expect people will steal soap and such. It isn't hard though. You meet nice people. You sometimes don't meet the guests at all. I live near the airport. I had more people that I did not meet than those that I did. I think that is abnormal.

You should get a rider on your insurance for it too.

Thanks, great info. Tacoma’s permitting factsheet says short term renting a detached unit is ok so long as you live in the associated primary residence, although it wouldn’t hurt to get separate confirmation. Did you ever hire a cleaning service to handle the cleaning bit, or did you DIY it?

 

[charles sullivan]

Thanks, great info. Tacoma’s permitting factsheet says short term renting a detached unit is ok so long as you live in the associated primary residence, although it wouldn’t hurt to get separate confirmation. Did you ever hire a cleaning service to handle the cleaning bit, or did you DIY it?

DIY.

I had one of my children do it sometimes too. Lot's of sheets.

If you are building it. Build it with easy cleaning in mind.

AirBnb and VRBO will tell you how important good reviews are. They want good reviews because it helps them. I never stressed about having a perfect review. In fact, it is mostly a function of meeting the guests. People are less likely to give bad reviews to people they meet. We did not meet quite a few of our guests. We had good reviews but I never really cared. People were gonna come one way or another.

People like having their own safe parking a lot. They really like clean. They like access to media/ streaming but will buy netflix on your account if allowed. WiFi is a must for most. You may need to figure out how to get it into the structure.

We did not have a problem with people partying or using it for prostitution etc. but I understand that can happen. Read up on how to keep it from happening to you.

I would consider having a plug in for electric cars. It takes 50 amps. I suspect that may be a difference maker and E-car people can afford E-cars so they are most likely more well off guests.

Mini-splits are excellent to heat and cool for small spaces although expensive to install. Energy code sort of forces you into them. Plan accordingly.

Keurig's are generally loved. They limit the amount of coffee people will take. Body wash and shampoo dispensers are a great buy too. You won't have to buy a bunch of little bottles that will be taken. Silverware, cups, plates etc. will disappear. IKEA is cheap. In fact, even for decorating or kitchen and bath stuff, IKEA is generally the best bet. People like the hotel like aesthetic and it's cheap. Towels, racks, cups, silverware etc can be purchased for less there.

Buy cheap toothbrushes and leave one. It's a lifesaver to many.

You will buy electric combination locks for the doors. Change it to the guests last 4 digits of their phone # each time. That keeps them from forgetting and calling you at 1 AM.

People will forget stuff. You will send it back to them.

 

[RCF]

Understand the tax ramifications. Your income goes up, different tax bracket? Are you writing off portions on taxes? Does it change the cost basis when you sell the property... Do not forget property taxes - they will change. CPA consultation beforehand may be a good idea to understand all the ramifications and if it is worth it.

If you have a mortgage you may need to get their approval.