With the growing popularity of Airbnb, homeowners I speak with are constantly asking me if they should turn their own property into an Airbnb rental.
Judging by the numbers, having an Airbnb rental property can be a fantastic source for wealth generation. For all its monetary benefits, though, keep in mind that an Airbnb is essentially a glorified rental property. Rather than dealing with tenants on an infrequent basis, be prepared to deal with them full-time.
If your home is governed by a homeowners association, condo association, or some other regulatory body, one of the most important things to do before going the Airbnb route is to check your covenants to make sure that there are no rules against it.
This has particular relevance to our Memphis market because we’re starting to see more and more condo associations and homeowners associations amend their bylaws to include a ban on Airbnb rentals.
Imagine purchasing a property and setting it up to be an Airbnb, only to discover that your association forbids this activity. Then, next thing you know, you’re mired in a legal battle that you never saw coming, which is why it’s so important to check with your governing association right from the get-go.
If you’re thinking about seizing this investment opportunity and there aren’t any roadblocks standing in your way, the Airbnb approach might really pay off in the long run. If you have any questions or you’d like to discuss this topic further, feel free to give me a call at 901-591-8100. I’d be happy to speak with you!