5 ms·

I recently bought a condo in Maui to rent and those places are sent up for this sort of thing. They even call them Condotels. Being designed for short term rent

by bradly 13y ago

I recently bought a condo in Maui to rent and those places are sent up for this sort of thing. They even call them Condotels. Being designed for short term rentals brings a lot of benefits like resort manages check-ins/outs for you. Also, there is an echo chamber in the tech community regarding AirBnB as the standard for short term rentals. From my experience, VRBO has been much better and provided significantly more bookings. ymmv and it could be your customer type as a two bedroom condo in Hawaii gets a lot more families and older bookings. If anyone has any questions about this, my email is in my profile.

mbreese 13y ago
But the difference is, you bought something where short-term/vacation rentals are one of the main purposes. Your condo was designed so that it could be used as a short-term rental. You are working within an established business model. Many dedicated AirBnB locations are supposed to be strictly residential with longer-term leases.
geebee 13y ago
Rather than saying "don't do this", it would probably be better to say "Step 1: make sure it is legal to do this". As you've pointed out, there are plenty of places where it is perfectly legal to do this. My guess is that it's harder to find a profit opportunity, though, because the more profitable use (legal use as a short term hotel) is already priced into the unit. I suspect that one reason airbnb is so profitable in areas where it is not legal is that the restrictions on short term rentals suppress the sale price of the unit. So you buy a unit that is cheaper precisely because it is illegal to use it as a hotel, and then you profit by using it as a hotel. So in cities with very strict zoning and tenant protection laws (like SF), I guess they're selling the assumption of risk.
- bradly 13y ago
  Because they can't be purchased as a second home, the down payment is the biggest hurdle in getting a unit (30-35%). The cash flow after that is quite nice if you can find the right property.
- glibgil 13y ago
  Done: It is legal. This is a contract issue and is therefore covered by civil procedure and not criminal code. So, it is "legal". But, you may be sued for breach of contract and be found to have damaged the other party. But, that all has to be argued in civil court and you may win or the other party may be found to have no damages. Finally, be sure to pay your taxes. That actually is a law.
  - cortesoft 13y ago
    Zoning laws are a legal issue, not a civil one. So are licensing requirements and other hotel codes. The HOA stuff would be a civil matter, but that is only one of the things preventing this sort of action.
- anoncowherd 13y ago
  > As you've pointed out, there are plenty of places where it is perfectly legal to do this. .. Why the everloving fuck would this be illegal? What sense could it possibly make? -You have some property and you're letting someone use it for a fee. I get that this actually might be illegal somewhere - I'm just trying to highlight the fact that it would be absolutely fucking insane.
  - hansjorg 13y ago
    > What sense could it possibly make? -You have some property and you're letting someone use it for a fee This is the extraordinarily naive libertarian position. Most people would not welcome a brothel as their closest neighbor for example.
    - faster 13y ago
      Funny that you should mention that. My next door neighbor put herself through nursing school on her back, and by renting her place to others in the same profession when she was at school. They were far quieter and less disruptive than the aging couple on the other side of my place. If it had been put up for a vote, I probably would have voted 'no', but the reality was not what I would have expected. This of course is not relevant to the discussion, where someone bought a condo which requires accepting the declaration, bylaws and rules and regulations of the HOA. If those rules, which the buyer accepted, forbid short-term rentals, then there's no excuse for doing it anyway.
    - anoncowherd 13y ago
      >> This is the extraordinarily naive libertarian position. Most people would not welcome a brothel as their closest neighbor for example. That's different from just renting out your place to some random traveller. Besides, even if renting your place is legal, nothing prevents you from whipping up a contract that places some limits on how rowdy the occupant(s) can get. So no, there's nothing "naive" about thinking that renting out your property being illegal is fucking insane.
  - DanBC 13y ago
    Hotels are regulated for fire safety, food hygiene, etc etc. You can see how it's useful to protect society to not allow people to run unlicensed hotels?
curiousDog 13y ago
What's the name of the condos if you don't mind me asking? I'm looking for something similar.

by bradly 13y ago

mbreese 13y ago

But the difference is, you bought something where short-term/vacation rentals are one of the main purposes. Your condo was designed so that it could be used as a short-term rental. You are working within an established business model. Many dedicated AirBnB locations are supposed to be strictly residential with longer-term leases.

geebee 13y ago

Rather than saying "don't do this", it would probably be better to say "Step 1: make sure it is legal to do this". As you've pointed out, there are plenty of places where it is perfectly legal to do this. My guess is that it's harder to find a profit opportunity, though, because the more profitable use (legal use as a short term hotel) is already priced into the unit. I suspect that one reason airbnb is so profitable in areas where it is not legal is that the restrictions on short term rentals suppress the sale price of the unit. So you buy a unit that is cheaper precisely because it is illegal to use it as a hotel, and then you profit by using it as a hotel. So in cities with very strict zoning and tenant protection laws (like SF), I guess they're selling the assumption of risk.

bradly 13y ago
Because they can't be purchased as a second home, the down payment is the biggest hurdle in getting a unit (30-35%). The cash flow after that is quite nice if you can find the right property.
glibgil 13y ago
Done: It is legal. This is a contract issue and is therefore covered by civil procedure and not criminal code. So, it is "legal". But, you may be sued for breach of contract and be found to have damaged the other party. But, that all has to be argued in civil court and you may win or the other party may be found to have no damages. Finally, be sure to pay your taxes. That actually is a law.
- cortesoft 13y ago
  Zoning laws are a legal issue, not a civil one. So are licensing requirements and other hotel codes. The HOA stuff would be a civil matter, but that is only one of the things preventing this sort of action.
anoncowherd 13y ago
> As you've pointed out, there are plenty of places where it is perfectly legal to do this. .. Why the everloving fuck would this be illegal? What sense could it possibly make? -You have some property and you're letting someone use it for a fee. I get that this actually might be illegal somewhere - I'm just trying to highlight the fact that it would be absolutely fucking insane.
- hansjorg 13y ago
  > What sense could it possibly make? -You have some property and you're letting someone use it for a fee This is the extraordinarily naive libertarian position. Most people would not welcome a brothel as their closest neighbor for example.
  - faster 13y ago
    Funny that you should mention that. My next door neighbor put herself through nursing school on her back, and by renting her place to others in the same profession when she was at school. They were far quieter and less disruptive than the aging couple on the other side of my place. If it had been put up for a vote, I probably would have voted 'no', but the reality was not what I would have expected. This of course is not relevant to the discussion, where someone bought a condo which requires accepting the declaration, bylaws and rules and regulations of the HOA. If those rules, which the buyer accepted, forbid short-term rentals, then there's no excuse for doing it anyway.
  - anoncowherd 13y ago
    >> This is the extraordinarily naive libertarian position. Most people would not welcome a brothel as their closest neighbor for example. That's different from just renting out your place to some random traveller. Besides, even if renting your place is legal, nothing prevents you from whipping up a contract that places some limits on how rowdy the occupant(s) can get. So no, there's nothing "naive" about thinking that renting out your property being illegal is fucking insane.
- DanBC 13y ago
  Hotels are regulated for fire safety, food hygiene, etc etc. You can see how it's useful to protect society to not allow people to run unlicensed hotels?

curiousDog 13y ago

What's the name of the condos if you don't mind me asking? I'm looking for something similar.