At Worley and Associates in Branson, we are the “go to” firm when it comes to nightly rental investing. We help investors acquire great income producing properties and consult with new investors who are thinking about owning a vacation rental in Branson. Many of the clients I have worked with in the past are new to owning their own business and had many questions about what it takes to operate a successful vacation rental business. Sites like AirBnb, VRBO, FlipKey, etc. are the major players when it comes to hosting your new listing online for potential customers. So today I thought I’d address some of the rumors and go over the pros and cons of vacation rental investing.
Pros of Vacation Rental
Short term rental in a good location, furnished and photographed well, and operated with great customer service can pull in 2 to 3xs the revenue of an unfurnished long term rental. If you look at what hotels in your area are charging you can figure out pretty quickly that a well run AirBnB surpasses a traditional rental model.
Maybe money isn’t everything to you. Maybe you’re looking for a great cultural experience. Hosting an AirBnb gives you the opportunity to meet people from all over the world.
This is a concern I get a lot when talking to investors about vacation rental in Branson. This may sound counter intuitive but running an AirBnB can result in a cleaner house. If you’re renting it out often then you’re also cleaning often. And guests will find the weak links in your homes armor. A faulty light switch, or a hanging cabinet door, you should probably think about fixing those soon. Because of the speed that AirBnB reviews are given and the weight that they hold you are always motivated to keep your place at its best.
Cons of Vacation Rental
Time and Work
Running a profitable AirBnB is not rocket science but it’s also not a walk in the park. The first year you’re going to work hard-scrubbing toilets,laundry, cleaning, stocking, key handoffs, pre stay communication, in stay responses, calendar management, and the occasional repairs. They’re all part of running a great vacation rental in Branson. Now can you outsource these duties? Yes, of course you can! But to be a good AirBnB host and business owner it makes sense to do it yourself first. The benefit of this is you know what it’s worth to you to hire out and you know what your personal expectation of this is.
Opening up your home and inviting numerous guests in naturally creates some risk. There are going to be not only thoughtless guests who come to your house to party and consequently leave the remnants of a party but also well intentioned guests who may accidentally break something. But here’s something to know: Those issues are so few and far between that I would not let them deter you from pursuing this model. Those horror stories you hear on the local news? They happen. AirBnB hosts something like 500,000 stays every night of the year and 1 or 2 of those stays are bound to turn sour. You can take steps to prevent such an incidence and/or protect yourself in the event they do happen. First, actively screen your guests. Ask them questions. Find out what they’re intentions are for staying. Second, be sure to purchase insurance tailored to short term rental. And no, neither your homeowners policy nor your traditional landlord policy will cover you. AirBnB is not for everyone. Inviting people into your home requires a certain comfort level. I still encourage skeptics to give it a try but if the idea makes you squirm then traditional rental may just be better suited for you. The pros far outweigh the cons of vacation rental. It can springboard you into the world of real estate investing, it can hone your skills in operating a business, and can change your financial future for years to come.
To get a FREE copy of Jeramie Worley’s book “Myths, Management & Mastery of Vacation Rental” contact me today and I’d be happy to send you one in the mail. I’ll even pay the shipping. Click here for more on my blog about owning a vacation rental in Branson,MO. Want to see a list of vacation rentals for sale in Branson,MO? Click here