The Pros and Cons of Investing in Airbnb

Today I’m out on the water on my commute back from Vashon, enjoying one of the only 90 days of sun we get in the Seattle area. Today’s topic is about investing in Airbnb. What does it take to “Airbnb” your house? Should you look into purchasing a condo specifically for Airbnb?

If you’re doing this with a condo in Seattle, you need to be careful because very few condos actually allow short-term rentals. They don’t want to run a hotel and the people living there don’t want to live in a hotel so their bylaws exclude anything less than a 30-day rental.

If you’re buying a place, you want to know what the rules are regarding short-term rentals. Most single family residences in Seattle allow for short-term rentals. Almost no neighborhoods have zoning laws that would restrict that type of rental, so if you own or are planning to purchase a single-family residence for Airbnb investment, then you should be fine.

Should you find a management company for the daily booking, cleaning, and running of your property? The question you need to ask yourself is this: do you want to be hands-on or hands-off? You’ll pay for hands-off, but it’s worth investigating Airbnb management companies in Seattle and keeping a couple references on hand in case you needed someone.

“If zoning laws change, do you have an exit strategy?”

One thing you need to consider is that in Seattle, the Airbnb investment properties are a lucrative investment and make more money than long-term rentals. The problem with this is that folks who are deciding on short-term rental investments are pulling long-term rental properties away from an already tight market. If you’re a socially conscious individual, as most are in Seattle, then you need to consider that your Airbnb may be detrimental to the folks looking for a stable living situation in the city.

Additionally, you should consider the long-term implications of investing in Airbnb. Do you have an exit strategy if the permitting changes and you’re no longer allowed to do short-term rentals? Do you sell the property you’ve purchased, or can you turn the property into a long-term rental? Zoning and permitting ordinances do change over time as the city’s needs change, so you need to make sure you have an exit strategy for this investment.

If you have any other questions about this topic or you’re looking to buy or sell a home, please give me a call. I look forward to working with you.