Investors Are Unloading Their Airbnbs. Why You Should Make One Your Next Home

Source: realtor.com

In many vacation spots, too many short-term rentals have led to lower occupancy and shrinking profits. Homeowners now face stricter rules and higher fees from local authorities or homeowner associations, making it harder to rent legally. As these challenges grow, more owners are considering selling their Airbnbs. Buyers of former vacation rentals should be cautious, as these homes can offer unique benefits but also come with risks when converting them to full-time residences.

Lots of wear and tear? Not necessarily

While some buyers assume former short-term rentals are poorly maintained, agents say that's not always true. Luxury rentals are often kept to high standards, especially where permits require annual inspections. Damage varies by property type-homes used for large groups may show more wear than smaller units. In some areas, like Lake Tahoe, strict permit rules mean these rentals may be better maintained than many owner-occupied homes.

Too many tourists?

If you’re looking at a home that was once an Airbnb, chances are the neighbors are renting their homes out, too. Talk to neighbors, they can tell you the make-up of the community—whether, for example, homes are owned by investors or owner-occupants. Many cities also offer a registry of short-term properties that show which neighborhoods are hot spots.

Do research on the neighborhood’s HOA. Many HOAs are stricter on short-term rentals than local governments.

Take the listing offline

As part of a buyer’s due diligence, they should ask a seller whether they have any upcoming reservations. Better yet: Ask for evidence that they’ve been cancelled.  buyers should make sure that their agent stipulates that the seller removes all advertisements showing the listing.

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