Agents can play a valuable role in ensuring their clients are ready for rental success by identifying homes that could be great rentals, suggesting improvements and updates, and educating landlords of the rules. local. Here is what you need to know.
The ubiquity of short-term rentals means that “Airbnb” is now a verb, much like “Google”. It represents not only the service but also the action of renting an Airbnb for personal use or offering a residence on the platform.
As Airbnb and other short-term rental companies expand their presence in local real estate markets with more than 5.6 million ads around the world, real estate agents can play a crucial role in helping homeowners host their own homes.
The growing popularity of short-term rentals and the promise of lucrative listings give agents the ability to help new owners maximize home buying and build relationships with your clients.
Provide advice on modifying the home to accommodate tenants, advice on strict and ever-changing local regulations on short-term rentals and advice on current market forces, and recommend trusted contractors and companies property management services create considerable added value for clients who rent out their homes.
What to look for in a house
Airbnb customers seek reliable and exciting experiences. When searching for a home for Airbnb, customers should look to clean, open designs filled with natural light. These homes are well photographed and provide a calming environment for guest travelers.
According to a survey more than 2,000 Airbnb tenants, the most important amenities (in order) are powerful Wi-Fi, access to kitchen, private bathrooms, air conditioning, free parking, heating, washing machine, private entrance and family friendliness. The more boxes a house can tick, the better.
If your client intends to live in the house and rent a room or section, ideally the house will have a separate, dedicated entrance. Perhaps the house has a basement with exterior access or an ADU that provides guests with a comfortable and private retreat.
While owners can certainly list single rooms, many customers opt to rent whole units for more privacy and are willing to pay a lot more for it.
Outdoor space is important. Customers should consider the curb appeal and functionality of the home’s backyard in terms of their own enjoyment and the potential appeal it could represent to guests. Add budget-friendly amenities like a fireplace, outdoor lights and vegetation to increase the appeal for tenants who book through online photos.
The mantra “location, location, location” holds true for Airbnb rentals. Out-of-town visitors want to be close to a town’s amenities.
Even if a house is not quite walkable, agents know how to sell houses. Agents are particularly adept at showcasing attributes of a home and neighborhood, such as describing updates, locating guest parking, highlighting local businesses, parks, and more.
The remote work opportunity
According to Airbnb data for the first quarter of 2021, stays of 28 days or more now 24 percent reserved nights via the platform – a major increase from 14% before the pandemic. While the exact reason is speculative, the rise of flexible or fully remote working is certainly at work.
For many remote workers, the new work office dynamic offers greater opportunities for landlords who may prefer longer term tenants. After all, long term rentals require less flipping and wear and tear by short term tenants.
Homeowners can respond directly to ‘nomads who work’ by providing them with dedicated office space for their laptops, fast and reliable Wi-Fi, home gyms, kitchen areas and other amenities.
Investing in small details will pay dividends and increase their stellar reviews, like purchasing quality office chairs with ergonomic support, coffee and tea stations, simple office supplies, and even additional technology such as a monitor, device chargers, and a printer or scanner.
While there are considerable opportunities for offering short-term rentals, longer rental stays also reduce the risk of regulatory non-compliance.
Understand local regulations
Regulations governing Airbnb rentals vary from city to city, and many owners do not follow local real estate news. For example, many prominent rental cities, like Denver, Colo., Have new short-term rental regulations in place.
In Denver, if homeowners are renting out their primary residence for one to 29 days, they need a short-term rental business license. All short term rentals must be the owners’ primary residence. City residents also need a tenant tax identification number, which comes with a small fee, and the actual business license requires the landlord to provide proof of primary residence for any short-term rentals. term.
Violating these rules can be subject to significant fines and penalties. Many cities use software that crosses all short-term rental licenses with active listings on websites.
While each town’s rules vary, agents can play a valuable role in ensuring their clients are ready for rental success by identifying homes that could be great rentals, suggesting improvements and upgrades. up-to-date to maximize rental success for long- or short-term clients and educating owners of local rules.
Jenny Usaj is the employer broker and owner of Usaj Realty, a real estate brokerage house in Denver, CO. Jenny is a member of the Denver Metro Association of RealtorsMarket Trends Committee.