5 Problems With Owning An AirBnB That No One Talks About
ฝัง
- เผยแพร่เมื่อ 2 มิ.ย. 2024
- Happy to share the newest addition to the Roborock Family!
The new Roborock Flexi series handles wet and dry messes, delivering edge-to-edge cleaning performance, and effortlessly cleaning under furniture as low as 15cm!
Link 1: bit.ly/3UDA5zH
Link 2: amzn.to/3QzLHCf
#roborock #RoborockFlexi @roborock
0:00 Intro
0:15 Thank you to Roborock for sponsoring
1:42 #5 - legal costs
2:44 #4 - it's more time consuming than other investments
3:57 #3 additional insurance costs
4:59 #2 city regulations
6:33 #1 income is capped
9:05 bonus #1 reason that EVERYONE talks about
Vlog Channel: / othershelby
For business inquiries please contact shelbychurch@underscoretalent.com
This video is sponsored by Roborock - แนวปฏิบัติและการใช้ชีวิต
36 to 26 is tough. I feel like years ago airbnb was worth it, now long term rental is looking more appealing. TY for being transparent!!
I love the way you allow your opinion on things to change over time. It’s humble and refreshing and your intelligence is impressive
That means Shelby is a mutable sign (Gemini, Virgo, Sagittarius, or Pisces).
Most probably she's a Gemini ( she also seems Mercurial)
@@victorcretu7741 It means that she's an intelligent woman who understands that life is a series of changes and is unafraid to change along with said life. Also, astrology is far more than just your sun sign....if you believe in those things.
@@victorcretu7741 She's Aquarius.
@@brianxyz I know. Feb 10, if I well remember.
@@victorcretu7741 👍
Love your authenticity and transparency on this topic! 🙌🙌My husband and I ran an airbnb for a couple years and finally broke down the numbers on short term vs long term and realized it was only making us like $250 extra a month short term. It wasn't worth the headache and as soon as we switched to a long term tenant our mental sanity came back.💃so yes I 1000% agree that airbnb is not passive and personally felt like we were always on call. Only worth it if you get to go enjoy the home yourself from time to time!
Original idea of rbnb was to rent a couch in somebody s house as cheaper stay in than any hotel. That's how we visited all Europe for half of prices of hotel. Then people turned it to luxury resort
Has it already been three years we’ve been following your AirBnB journey? Appreciate all the updates and showing us the numbers behind running the house.
A lot of people went into the market thinking it was an easy way to get rich. You've now discovered what did years ago about having rental homes. (Mine were not short term rentals, mine were minimum 1 year leases.) I sold them, it's a LOT of work for the return. Better to buy an S&P 500 fund. Last year the return was over 22%. Contribute money into it monthly.
Returns in bit_coin blow out those of the S&P and have done for 15 years and will continue to do so
Great video. Another thing to consider is that property managers often charge 25%, which can eat up your entire profit after all other expenses are paid. Moreover, they will never care about your property like you do. When I visit my house, I always find numerous items that need repair like a leak in irrigation system, broken blinds, stains on fabric, non-lighting burners, etc. I was hoping to hire a property manager and never worry about the property but that hasn’t been the case. At least yours seems to be aware and attentive.
It's true property managers charge a much higher fee than long term renting. I've found my property manager takes SUCH good care of my house. she's always noticing things that need fixing and taking care of it, it's soooo nice! But I think a lot of the larger property management companies don't really care
I think another ethical way of owning an airbnb is renting out your guest suite of the home you already live in. Like a renovated garage or barn or similar!
Well a lot of that is banned too thanks to the clowns who thought Airbnb bans were a good idea. So now people who could rent out their guest houses won’t. And those who do, will charge astronomical prices. The house always wins.
That's how Airbnb started and that is what I did! That's actually what majority of people did before the investment rush.
The same for me! My income from the BnB pays my mortgage! That is a win for me!
Airbnb itself definitely has a cap unlike TH-cam, BUT I think the two combined has massive potential. I document myself building unique experiential type homes, work with brands to cut down on building expenses and get some really cool amenities for a crazy discount. Then once I finish the home I list my construction plans for sale, so I get a little extra margin (like you mention with digital sales side of things), secondly I can sell the plans for an incredible discount (providing tons of value to purchasers), and then the often DIYers have a set of videos to see generally how to build the home! Meanwhile while you build you're indirectly marketing your home to people that might come out and stay. Tons of value provided across the board, I get some extra cash to help fund more builds, viewers get a fun story to watch and a dirt cheap set of construction plans for a really cool home!
I completely agree with everything said in this video, especially that unless you’re getting into this to have a vacation home, it’s NOT worth it. That’s the mentality I went into for our Airbnb and im prepared for those months when the bookings do not cover the expenses, that just means we will be vacationing there ourselves. 😊
Shelby, I really enjoyed your video today and I'm glad it was so straight forward and spoke the truth. Thanks for taking the time in sharing!
Another thing to think about when you operate an AirBnB, aside from dealing with entitled customers, is that it can negatively affects your neighbors and your neighbors might complain. I lived in a duplex condo and the owner upstairs started renting out some rooms as AirBnB without telling me. I complained to her because I started seeing strangers going in and out of the front porch (which was owned by my unit and is supposed to be only for residents) with luggage, and sometimes these AirBnB customers would hang out on the porch.
On the flip side, I booked an AirBnB recently and the owner had to give extremely detail instructions to finding the apartment because they had customers who ended up knocking on neighbors' doors or parked at the wrong spots. That AirBnB owner basically said the neighbors can get really nasty.
Invest your money elsewhere. Not worth it.
AirBnB is not for me. I'm investing in stocks. I have my winners and losers.
It’s not a this or that choice. Invest where you have the best opportunity for better than market average growth. Take what the market is giving you. It changes, they all have risks, and they all have different personal time commitments.
I still think you should just live there. You designed it to your liking, and it's a gorgeous home. LA is nuts, IMO.
Besides the local council, individual buildings can implement bans at any time. Airbnb is not allowed in the building we live in. If building managers get too many Airbnb related complaints they can just decide to ban it altogether.
Here in Ocean Beach (San Diego) some old man got around the rules and regulations by buying the homes that were for sale and then convincing (or paying off) his friends and family to tell the city that they owned the property. He ended up owning over 50 homes if not more and using them as AirBnBs! Completely changed the vibe of the neighborhood. 😌 If you know anything about SD city government, they move slow so it took them a while to catch on until the media got wind of this story last year. SMH! The sad thing is that once he bought the homes or apartment complexes he was evicting young families and young and old military vets. 😲
I did AirBnB when I first bought my home and it was the original intent- staying AT someone's home. It was easy- most of my tenants were airline personal and staying with me was cosier and easier than staying a hotel. My guest room was super cozy with freshly laundered linens, a mini fridge, fresh greenery or flowers, continental breakfast and fresh Stumptown coffee. It was fun, tbh. I did make money- but after expenses it just basically covered the mortgage. I stopped during the pandemic and I don't think I will do that type of rental again.
Shelby, with any real estate investment you have, you face fixed costs. If you were going to run your place as an ALR, it wouldn’t be a vacation home because older people would live there full time and you’d either be an administrator or hire someone to run the place as one and have a full time staff to look after residents’ needs. No matter what model you have, it isn’t going to be a set up and forget type of investment where you have to do it only once and you can walk away or automate it. Thanks for drawing our attention to things people don’t think about they do need to pay attention to. This isn’t a business for everyone but for some people, it could be the right fit.
Very informative video!! I really enjoy all the details you mentioned and I never thought about all the extra cost.
thanks!
I agree, it's too much like being in the hotel business. Certainly not passive, higher liability, more paperwork. Always an issue going on even though mostly small. After 8 years, im letting it go and sticking to long term, more predictable.
Thank you for being so transparent about it
I’ve done the short term rental thing. You are spot on. Best outcome is defraying your cost of a second home that you use.
Excellent video, very informative.
That's the thing, depends on where you have an airbnb, Palm Springs is not really the type of location where long term renters rent.
Where do you think the workers live? Restaurant, hotel, golf courses all have workers who need to live close to their jobs. There are 46,000 full time residents living in PS. Unfortunately, there are 3,000 vacation rentals which ate up the rental stock. Now they have a hard time finding workers who want to travel from Indio or further to their jobs. Talk about ethics.
@@berniea.3255 everyone needs somewhere to live, but doubt they'd live in a house like Shelby's though to be completely honest cause the rent is probably too high. Smaller airbnbs and apartments I can see being more of an issue being taken out the housing market.
@@AB-tb7bt That is what people think but actually that neighborhood had many long term rentals that were filled with two income working families and small business owners. That is until vacation rentals came into existence in 2017. That business only grew and now there is no going back. Same story in a lot of towns which is why they have banned vacation rentals in most cities in this valley. By the way, a lot of those mid century modern homes are only 1200 sq ft.
@@berniea.3255yes but more vacationers in a town bring more life and more money. They would have to build more apartments further out, for the people who service that.
Great video. The only thing I wish you would have touched on is that Airbnb can and has removed host based on their ever changing policies. Sometimes it feels as if the home belongs to airbnb and not you the owner. Makes the business even more risky.
Stop changing your policies so often. That's shady! Also, did you ever stop and think that maybe it's not a home anymore but more like a hotel? 🤔 You can't operate a hotel in a residential neighborhood!
Love hearing about your Airbnb and can't wait for more content on the Joshua Tree one too!
Very informative, thank you.👍
Thank you for your research. I find your videos are well done. RIght now I'm keeping an eye on Eledator
$800 a year for LLC. CA loves to take their residence money. Hahah
Yes. Sounds very very high. Especially as most are submitted online.
i love this honesty!
I want an Air BnB so i can travel in a van but still own a home so when I want to settle down I can.
Learn about B i t coin instead
Great video as usual Shelby!!
Love the transparency.
We appreciate your honesty.
I was thinking about starting one. Maybe rental arbitrage but will keep on thinking
You definitely have my sub. This content is next level. For me Eledator was the turning point. Please keep doing what you do and keep being you, love it.
I remember when you were doing construction on the Palm Springs house. I enjoyed every single minute of it. I really want to meet you and take you out for dinner. You will know its me, when I yell, "HEY SHELBS!!!!!!"
Soo well Explained!👌👌
Appreciate you keeping it real on pros/ cons, and a balanced perspective on how it could affect local markets
I like your honesty and candor
Hi Shelby, good video. I stayed in one last week in my home town which is very expensive to own and I was visiting family. I think either the owners live in part of the house, a Victorian on the water or it was a monthly rental plus Airbnb. I know what I paid and I suspect they do well.
Awesome video. Spot on.
Uh … you forgot to say bye! 😂
It doesn’t seem like the small profit you make is enough for all the hassles. Most of the people I know who make bank with rentals own many.
Would be cool to follow up with the 5 benefits that no one talks about!
Good idea!
8:47 ruining the housing market for future generations. 💯 So glad to hear someone acknowledge that because I don’t think that a lot of people have connected those dots.
36 to 26 days? Wow. I'm glad mine is in a rural area and most of the nearby homes are also STRs. Aren't the LLC and STR permit write-off expenses though?
Thanks Shelby 👍🇺🇸
No property appreciation? equity? I'll bet it's hundreds of thousands since you bought?
She mentioned that in a prior video.
I've never had a rental property, so I've never employed a property manager. But it seems weird they're messaging you to get the pool cleaned. Isn't it their job to find out the pool needs to be cleaned and make it happen?
Why are you doing an LLC and an umbrella insurance policy? Genuine question. Otherwise great video! Love the honesty and transparency
I started watching around the time you bought your STR in PS as we have some similarities. I love PS and grew up in the PNW, too. We have 15 doors, all LTR, and thought about investing in a STR, especially during the pandemic, but relieved we didn't. LTR have their cons too but STR are becoming less favorable.
I still think you and Sam should just turn the air bnb into y’all’s actual home especially since your doing the air bnb in Joshua tree 😊
If they actually allowed you to rent it out all year round, it would not matter that it’s an AirBNB, as people renting it would use the local shops, etc and you would not end up with an abandoned neighbourhood. So putting restrictions on AirBNB actual creates these dead areas if there are many houses of these kinds.
Exactly. I don't get what the point is of those restrictions. Might as well have some people in there.
Thank you Shelby for sharing all this Airbnb info! Previously you said that you were going to stop Airbnb and rent long term. Is that still your plan??? Love this video!🩷
She would do that if a certain new bill was going to pass (SB-584 to be exact), but that will mostly likely never happen 👍
Could you explain why it's a good idea to put the AirBnB under an LLC? Is it for liability issues?
I think you could build a cabin or a small house somewhere more rural and it would make for great content/sponsorships and be ethical!
This is a great video and all of your points are spot on, but I'm going to play a little devil's advocate. True cashflow is hard to come by with any type of rental unless you've been in the property for years before the housing boom started and interest rates soared. But there are other benefits beyond cashflow, you're owning an appreciating asset that you get to take depreciation against for your taxes. If you have other income streams, you can write-off some of your taxes if you have material participation in running your rental but this can't be done if you need to hire a property manager. A cost segregation study allows you to accelerate and take bonus depreciation during your first year of operation. Does it take some of your time to run this type of business, absolutely but I am willing to put my time into my own business over putting in my time for someone else.
Love the videos: Accountant fees for schedule C?
I see your point that the passive income is less attractive. Your customers are helping you pay the mortgage and the property is appreciating which is the profit center. Subtract you business expenses from the property appreciation. Now you are smiling.
What do you think about Big Bear?
Well I think there's a problem when you go too high end for Airbnb. So if you bought a cheaper house with a cheaper mortgage, in a cheaper area, you could probably still get a pretty decent nightly rate. And you would have to do the bookings and repairs yourself. Maybe not in California either. And then you would probably get a pretty good profit. It would be more work though. Edit- so like half the price of the house, you can charge half the nightly rate, you might get more bookings because people are usually looking for budget, you might end up ahead.
I thought that was the original concept of Airbnb to rent out a person's house when they were on holiday or like a spare room?
I am/was saving up for an airbnb and all the cities around had me banned it 😭 it makes it a lot harder to get started
What’s stock u buy or etfs
How much could you rent that house for a long term? If you subtract all the taxes, fees and cleaning fees from Airbnb, I wonder how close it would be.
I wanted to do Airbnb years ago but COVID kind of blew it up. Now, I'll continue to put $1000/week into Wealthfront across the automated investment, bond portfolio, and bond ladder and I'll never have to worry about tax loss harvesting or interest rates. I just sit back and make 6-10%/year. No Airbnb for me, it's too much of a hassle. I don't even like to rent Airbnbs anymore because they charge like $400 cleaning fee (and I have to do most of the work).
Repairs can kill your profits because renters do care and often are abusive.
In California the equity of most homes is quite good. So even if you are not raking it in with cash flow most would justify the investment based on building equity.
Yes, airbnbs take a rental away from families but… it also makes vacations affordable for those same families! I will never be able to afford a family vacation to NYC now that airbnb is banned there
Hii shelby. Pls make an update on tesla's autopilot. Thing changed now so it would be interesting.
Did Palm Springs shut down Abnb?
I always stay in a airbnb when I visit my daughter in LBC.
nice vlog
Shelboooooo the dare devil
Air bnb, is unfair bnb
Bed and breakfast in the air 😅😅
Shelbs!!!!!!!! I am going to rent your property in Palm Springs!!!!!
I hate airbnb and booking. I like long term because it can be really passive !. I dont like the idea of short term (my opinion)
Yea there are a lot of costs that the “gurus” never include in their calculators BUT there are quite a few benefits to owning an Airbnb - mainly tax reduction, equity, and using the home for your vacations. Get a cost segregation done since you earn so much with TH-cam! It’s a game changer!
Also, design your house for more resiliency - only built-in light fixtures, no outdoor cushion furniture, etc…
Naturally these numbers are very specific to one person’s experience, and that’s not going to be every person’s experience (both good and bad). We own several short term rentals and have a pretty low bar that they have to make at least 8%, beyond all of the expenses, otherwise that money should be invested elsewhere. If they cant perform, they have to be sold. Letting yourself become emotionally invested, holding on to properties that are costing you money, is where you start getting yourself into trouble.
3 years? Time flies
It would be nice to learn about owning a Airbnb
I remember Monica saying in a 2020 vlog that AirBnB's turn a huge profit... _"...and these houses literally make you profit like not even pay your mortgage, we're talking like 40 50 60 grand extra you get to own"_ It didn't exactly work out like that :) I wonder where did she get those numbers from?
The reality is they can make that much profit, but you need to do your research on where to buy and frankly Palm Springs isn’t it.
Yea and now she says retired people (elders) don't need homes as much....
@@brat32179 you're spot on. Every time I watch videos like this it's kind of frustrating because it seems to be so black-and-white. Like either they're saying Airbnb makes tons of profit or it's not really worth it. In reality, it's both depending on how you do your research and the market you enter. I know firsthand that it can be extremely profitable.
Did you ditch the "hair dryer"?
Wait is VRVO the same thing? You can only rent 26X a year?
VRBO? Yes, still short term rental
"Guests broke a blue ceramic dog"
The dog: 👁👄👁
I’m bout to do the same video bout being a landlord 😅
I loved your videos, and I was wondering if I could help you edit your videos, which will save you time.
When it became a business, like AirBnB arbitrage, the business was doomed. Hope more units come out as a rentals for local residents.
Buy one of hundreds of REITs if you want to own real estate.
the easy goldmire is over! The word is out. Would take some luck good market and not much compittion to be worth it
Tax prep is a write off as well right?
Something is off with your microphone. You are a lot louder on the left channel. Also had the same problem with the video before
airbnb is now insane, why host are trying to change 1200 cleaning fees and want to make the client to clean the house, so why advertising a 150 a night then charge an insane cleaning fee at the end and we have to do the cleaning because host do not want to take care of their properties. That is why I always stay in hotels, or houses owned by hotels, you do not get hidden fees, I know that hosts are trying to avoid paying big taxes by deflecting the night values but really? and they still wants their 5 stars for that.
lol airbnb isn't the only reason housing is insane, but its definitely one of the main contributing factors
Nooo, it's a very minor contributing factor in some spots.
@@saratemp790 maybe in places like NYC, Miami, Bay Area, where prices are already sky high
But there is no doubt it plays a significant factor into overall housing across the country
@@cwag07 most people live in the boring suburbs. I highly doubt there's a bunch of airbnbs taking up that space.
@@saratemp790 you have no idea how any of this works
when the most desirable places are taken by airbnbs, people look to the boring burbs because that is the only place they can afford or has inventory
@@cwag07 yes but most airbnbs are in glamour spots. There might be a few in the suburbs, but I doubt there are many.
Good morning from Gatlinburg TN Smoky Mountains Park 🏞️🌄...You would love it here Miss Church 🏞️🌄🐻
Yes unfortunately my husband and I have decided this might not be for us anymore…. Wish there were more videos like this a year ago lol. It’s ok though lots of things were learned.
Do sponsors find you and ask if you want to sponsor their product?
What happened to your Joshua Tree property?
Dan those fees are significant!
Interesting. I wish you would have a giveaway and let the winner stay in it a week😘
Can you record your video in one take? Some people add bloopers at the end of the video for humor.
I love how you say it's messed up for housing in the OC ...but then you justify it in Palm Springs 😂😂😂😂 that's funny!! People who are retired need homes toooooo... that's messed up you said not as much....😮