Air BnB Positives and Negatives

If you've been following real estate in Pittsburgh, or anywhere in the US for that matter, you've heard of the growing trend of investors focusing on short term rentals. What does this mean? This is a property designed for guests to stay at ranging from 1 night to a month or even longer. The difference is it's not a normal tenant on an annual lease.

These guests are generally traveling to the area, someone out in Pittsburgh that needs a place to stay, or even for work. The difference between using a hotel and this is the properties are stacked with everything someone would need. This includes full kitchen and utensils, beds and night stands, as well as even smart tv's and wifi. It is a great option outside of hotels and offers privacy at sometimes a reduced rate.

So buyers are flocking to this opportunity as the monthly income can be much higher than just a standard rental. Before jumping in, we want to discuss some of the positives and negatives of investing in short term rentals in Pittsburgh.

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Positives

Extra income- You can generate more income than the fixed rate of a rental property. In some cases, investors are making 2-3x the monthly revenue! This can be a massive return on your investment and pay down the mortgage must faster too.

Cleaner- It is required that the property be thoroughly cleaned every time a guest leaves. This means your investment property is probably getting cleaned even more than if you lived there yourself. This is great for the upkeep and aesthetics of a property, and much better than what some landlords deal with on rental turnover when tenants leave.

Automated- Most of the communication can be automated using apps. There are calendar apps to link to all the major booking sites, apps to adjust pricing based off algorithms, and apps to even communicate with the guests. If done correctly you can spend little time at the property or speaking with the guests, but it does cost to use these services.

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Negatives

More Work- Starting out and managing a short term rental is much more time intensive. If you don't want to outsource all the tasks using apps or cleaning services, this means you'll have to physically clean the property and do the laundry multiple times per week, communicate with all the guests, adjust prices to attract new stays, and deal with any issues at the property.

Added Costs- Hopefully the property is producing much more revenue to offset any additional costs, but there are other things you will have to include. One cost is for cleaning. If you pay someone to clean the house each time this can range from $60-100 multiple times per week. Also, if you are doing the cleaning you have to account for the supplies as well as toiletries and towels.

Furniture- You need to ensure there is furniture, sheets, cookware, utensils, night stands, etc for your guests. It basically requires an investment of buying furniture for a brand new house. This can cost thousands of dollars and should be accounted for in your total investment if considering short term rentals.

Overall the process of running a short term rental can be exciting, profitable, and fun. You get to communicate with people all over the world and show them the best parts of your city. You also can run things your way. This is a business and you are the owner. You have the flexibility to create your own style and experience for your guests that they hopefully enjoy. Local investors have found great success here in Pittsburgh like this listing in Mount Washington https://www.airbnb.com/rooms/39888084?source_impression_id=p3_1577639081_nLimEJCvt3flHbH0