Latest news with #shorttermrental
Yahoo
4 days ago
- Business
- Yahoo
5 Worst States To Run an Airbnb in 2025, According to Experts
At the city, neighborhood and property levels, dozens of factors affect what makes a good short-term rental investment. From occupancy to seasonality, average daily rate to cost basis, available skilled labor and risk factors like insurance volatility, investors have plenty of research to do. Read More: Explore Next: But at the state level, Airbnb investors tend to look at just one factor: regulatory risk. Watch out for the following states that don't make it easy to run a vacation rental property. Hawaii Unlike most states, nearly the entire state of Hawaii attracts tourists as a destination. That means there's plenty of demand for vacation rentals, so many property owners shifted their usage from long-term residential to short-term rentals in the early days of Airbnb. Given the already tight housing inventory, local residents pushed back — hard. 'Hawaii, particularly places like Maui and Honolulu, has cracked down with stricter rules and permit requirements in many areas,' noted real estate expert Ben Mizes of 'The high cost of living in Hawaii also means your expenses as a host will likely be higher, impacting your overall profitability.' Consider This: California While California doesn't impose statewide bans or restrictions on Airbnb, many of the cities with the highest tourism volume do. 'Many cities like Los Angeles, San Francisco and Santa Monica have implemented significant regulations,' added Mizes. 'They often require licenses and restrict short-term rental activity.' Even if you're considering a city with no current Airbnb restrictions, it could add them after you buy. Before buying an Airbnb in a regulation-heavy state like California, make sure it pencils well as a long-term rental, too. You may need to convert its usage if the city effectively bans Airbnbs later. New York Professional real estate investor Charissa Bright of Bright Buys Houses warned investors thinking about the Empire State. 'Between strict zoning laws, permit limitations, and heavy taxes, it's easy for hosts to get buried before they've even welcomed their first guest,' she said. 'New York City has made it nearly impossible to operate legally unless you're living on-site, which completely defeats the point for most investors.' That said, there's more to New York than just 'The City.' Airbnb and boutique hotel operator Tim Ensmann of Second Home Stays cautioned investors not to paint with too broad a brush. 'Don't write off the entire state because performance depends so heavily on local market dynamics, property type, local regulations and fundamentals like supply, demand, and price-to-rent ratios.' 'Just a few hours away from New York City, for instance, Buffalo offers a completely different story,' Ensmann continued. 'It has affordable entry prices, healthy appreciation and steady Airbnb demand, making it a potentially attractive market despite the state's overall regulatory reputation.' New Jersey Across the river from The Big Apple, Airbnb regulation doesn't get much friendlier. Leon Fisher, real estate advisor with Zook Cabins, sees a bureaucratic nightmare when he looks at New Jersey. 'Most municipalities require their own permits, properties must be upgraded to meet fire code, noise ordinances are strictly enforced, and short-term rental insurance is among the most expensive in the country. Working here without legal guidance is nearly impossible.' Maryland Another regulation-heavy state, Maryland doesn't exactly welcome short-term rental hosts with open arms. Fisher added that after leaving New York, many investors turned to Maryland, hoping for more stability: 'In Annapolis, a new law limits the number of short-term rental licenses per city block. In practice, that's created price spikes, license bottlenecks, and instability in residential neighborhoods.' Baltimore, too, has effectively banned Airbnb, only allowing it for owners' primary residences. While most states don't impose statewide Airbnb regulations, governments in some states jump to regulation as a first response rather than a last resort. Watch out for investing in cities in regulation-heavy states — you might find your business model outlawed within a year or two of buying. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) This article originally appeared on 5 Worst States To Run an Airbnb in 2025, According to Experts Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
5 Worst States To Run an Airbnb in 2025, According to Experts
At the city, neighborhood and property levels, dozens of factors affect what makes a good short-term rental investment. From occupancy to seasonality, average daily rate to cost basis, available skilled labor and risk factors like insurance volatility, investors have plenty of research to do. Read More: Explore Next: But at the state level, Airbnb investors tend to look at just one factor: regulatory risk. Watch out for the following states that don't make it easy to run a vacation rental property. Hawaii Unlike most states, nearly the entire state of Hawaii attracts tourists as a destination. That means there's plenty of demand for vacation rentals, so many property owners shifted their usage from long-term residential to short-term rentals in the early days of Airbnb. Given the already tight housing inventory, local residents pushed back — hard. 'Hawaii, particularly places like Maui and Honolulu, has cracked down with stricter rules and permit requirements in many areas,' noted real estate expert Ben Mizes of 'The high cost of living in Hawaii also means your expenses as a host will likely be higher, impacting your overall profitability.' Consider This: California While California doesn't impose statewide bans or restrictions on Airbnb, many of the cities with the highest tourism volume do. 'Many cities like Los Angeles, San Francisco and Santa Monica have implemented significant regulations,' added Mizes. 'They often require licenses and restrict short-term rental activity.' Even if you're considering a city with no current Airbnb restrictions, it could add them after you buy. Before buying an Airbnb in a regulation-heavy state like California, make sure it pencils well as a long-term rental, too. You may need to convert its usage if the city effectively bans Airbnbs later. New York Professional real estate investor Charissa Bright of Bright Buys Houses warned investors thinking about the Empire State. 'Between strict zoning laws, permit limitations, and heavy taxes, it's easy for hosts to get buried before they've even welcomed their first guest,' she said. 'New York City has made it nearly impossible to operate legally unless you're living on-site, which completely defeats the point for most investors.' That said, there's more to New York than just 'The City.' Airbnb and boutique hotel operator Tim Ensmann of Second Home Stays cautioned investors not to paint with too broad a brush. 'Don't write off the entire state because performance depends so heavily on local market dynamics, property type, local regulations and fundamentals like supply, demand, and price-to-rent ratios.' 'Just a few hours away from New York City, for instance, Buffalo offers a completely different story,' Ensmann continued. 'It has affordable entry prices, healthy appreciation and steady Airbnb demand, making it a potentially attractive market despite the state's overall regulatory reputation.' New Jersey Across the river from The Big Apple, Airbnb regulation doesn't get much friendlier. Leon Fisher, real estate advisor with Zook Cabins, sees a bureaucratic nightmare when he looks at New Jersey. 'Most municipalities require their own permits, properties must be upgraded to meet fire code, noise ordinances are strictly enforced, and short-term rental insurance is among the most expensive in the country. Working here without legal guidance is nearly impossible.' Maryland Another regulation-heavy state, Maryland doesn't exactly welcome short-term rental hosts with open arms. Fisher added that after leaving New York, many investors turned to Maryland, hoping for more stability: 'In Annapolis, a new law limits the number of short-term rental licenses per city block. In practice, that's created price spikes, license bottlenecks, and instability in residential neighborhoods.' Baltimore, too, has effectively banned Airbnb, only allowing it for owners' primary residences. While most states don't impose statewide Airbnb regulations, governments in some states jump to regulation as a first response rather than a last resort. Watch out for investing in cities in regulation-heavy states — you might find your business model outlawed within a year or two of buying. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 10 Used Cars That Will Last Longer Than an Average New Vehicle How Far $750K Plus Social Security Goes in Retirement in Every US Region This article originally appeared on 5 Worst States To Run an Airbnb in 2025, According to Experts Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Airbnb hosts running profitable businesses share the software tools they use to work as little as 6 hours a month
Todd Baldwin earns $9,000 monthly from two Airbnb units that he self-manages. Hospitable, a property management software, helps him keep his workload to 90 minutes a week. Other short-term rental hosts BI talked to use PriceLabs and Rankbreeze for efficient management. Todd Baldwin estimates he spends 90 minutes a week self-managing his two Airbnb units, which bring in about $9,000 a month combined. Assuming six hours of work a month, that comes out to an hourly rate of $1,500. His setup is unique in that his two short-term rentals are attached to his primary home, a duplex outside Seattle. He and his family live in one unit and rent the other, and he converted the garage into a studio apartment that's also listed on Airbnb. The rental income more than covers his mortgage, meaning his family lives for free in their own home, and leaves him with about $5,000 in profit each month. Baldwin, who spent years wholesaling real estate and is now focused on spending time with his two kids and building his family's "dream home," considers himself financially independent. "I don't actually have to work anymore," he told Business Insider. He and other Airbnb hosts shared the software tools they use to run efficient and profitable short-term rental businesses. BI confirmed each investor's property ownership and rental income. 1. Hospitable Baldwin said that Hospitable is the tool that keeps his Airbnb workload light. It's a property management software that allows him to set up automated messages for guest communication and manage bookings, tasks, and team reminders. Here's his calendar view. Guest names have been removed for privacy. The gray blocks are past bookings, while the green blocks are future bookings. He only uses Airbnb, but the platform allows users to sync their Vrbo and calendars to prevent double-bookings. Whenever a guest books a unit, they receive a welcome message. Baldwin is not sending this every time; he created a template in Hospitable that will automatically fill in the guest's name and land in their inbox. The day before their stay, they'll receive another message with check-in instructions. While it looks like it's coming from the host, again, it's simply a template that Baldwin has already created. He also gets a lot out of the task management feature, which allows him to assign cleaners to his units. "The biggest work is setting up the systems, which we did in a couple of weeks, and hiring cleaners," said Baldwin. "But once you have a great cleaning crew and you have all of your messaging locked in and your check-in instructions, it's pretty much automated and doesn't require much of our time at all." 2. PriceLabs PriceLabs is a tool that helps you accurately price your rental units based on demand and seasonality in your area. Manny Reyna, who lives with his family in Japan but owns rentals in Texas, uses it to manage his portfolio from abroad. "It automates the pricing for you, so you don't have to go into the apps and keep updating the prices — and it's meant to increase booking rates," said Reyna. "Say there's some special event going on. It'll raise the prices for you to meet that demand. Or, if nothing's really going on in the area, it'll lower the prices for you so that your listing stays competitive." The tool does more than recommend prices. It has a market dashboard that helps you analyze markets for investment potential. It's how San Diego-based real estate investor Kent He chose to buy short-term rentals in Scottsdale. It even helped him select the specific neighborhood in the desert city. He used PriceLabs to look at the top 200 listings in Scottsdale. Then, he did a keyword search in the reviews section of each listing. Specifically, he was looking for how many times the word "location" popped up in the reviews. "It's generally a positive connotation associated with that word," he explained, so he was looking for properties with a lot of mentions of "location" in the reviews. "Now, you know which neighborhoods people are raving about." 3. Rankbreeze Another tool He likes to use is a listing optimization software called Rankbreeze. It helps hosts fine-tune the description of their property and discover amenities that guests in their area are looking for. One of his favorite features is the A/B testing, which lets you change your cover photo or pet policy, for example, to see how it affects your Airbnb ranking. "On Google, no one really goes to page five or 10 after searching. It's the same for Airbnb. You want to be ranked as high as possible," he explained. "I use Rankbreeze to play around with my cover photos to see which one allows me to rank highest. I also play around with the listing title. For example, during colder months, I might highlight that we have a heated pool." You could offer the best Airbnb property in your area, but if it's not properly marketed, guests may never see it. Especially with the cover photo, "don't waste that space," said He. "Be intentional with your listing title and call out to your target customer so that they're more likely to click. Because if they never click into your listing, they'll never book with you." Read the original article on Business Insider
Yahoo
13-07-2025
- Business
- Yahoo
Airbnb Lets You Add a Private Chef to Your Rental. Your Host Might Not Like It.
Airbnb not only wants to rent you a vacation home this summer—it wants to help you add a private chef or massage session. The hosts who own the condos, cottages and houses aren't so sure. Inside the Shadowy, Lucrative Business of 'Superfake' Luxury Handbags Economists See Lower Recession Risk and Stronger Job Growth: WSJ Survey The Best EV Deals Now Are on the Used Market The short-term rental giant in May introduced a new 'services' offering, letting travelers book in-home add-ons that Airbnb says can make a trip more unique. For the company, it's another way to compete with hotels, which offer perks like gym access or spa appointments. Hosts, though, don't get a cut of the commissions from services booked for their rentals, and aren't alerted if one is booked at their place. Their properties are automatically enrolled in Airbnb's program, requiring hosts to opt out. 'Most hosts don't need more headaches, and that's what this feels like,' says Rhonda Stephens, who lists on Airbnb her historic farmhouse near Nashville, Tenn. She has changed the rules on her listing to explicitly state that services aren't permitted. The services are part of CEO Brian Chesky's goal to make the company the 'Airbnb of anything.' This spring, it reintroduced 'Experiences,' geared toward one-of-a-kind excursions like an Italian bike tour with an Olympian. Chesky predicted services bookings could become bigger than Airbnb's core short-term rental business. An Airbnb spokesman says the launch is in the early stages, and will over time benefit hosts by boosting bookings and making Airbnb more attractive and valuable for guests. The company says it couldn't comment on guests' initial use of the services ahead of its August earnings report. Charging extra at vacation rentals for perks like bike rentals or fridge-stocking isn't new. But the option hasn't been as available to smaller operators who rely on platforms like Airbnb to drive bookings, says Jamie Lane, chief economist of market-research firm AirDNA. Betsy Sawicky books stays at her rural home in Michigan through Airbnb and Vrbo. Services aren't currently available in the secluded area, she says, but if they launch nearby, she has no issues with guests booking personal chefs or other providers. 'If they found a massage therapist that would come to the house, those would be wonderful services,' Sawicky says. But overall she thinks the services make the most sense in more urban areas. Some hosts, Lane says, worry about the added liability that comes from a third-party provider entering the space. Airbnb says it vets service providers for quality and reputation as well as requiring them to submit licenses and credentials before letting them on the platform. The added verification hasn't yet convinced Amy Maynor to permit services at her three Airbnb properties in the Jacksonville, Fla., area. Maynor has superhost status, an Airbnb designation for top performers. She says she aims for a concierge-level of attention, including personalized recommendations and arranging for extras like surfboard rentals and deliveries. But Maynor says there is no way for her to independently vet the services or check if a service provider is properly licensed or insured. She says her own homeowners insurance policy only covers registered guests—not, say, a massage therapist. 'I don't want to get the oils all over the couch or the beds, or what have you,' Maynor says. Other hosts cited fears over personal chefs starting kitchen fires or people damaging floors by dropping weights during personal training sessions. On Reddit forums and in Facebook groups for Airbnb hosts, posts about opting out of services have generated hundreds of comments. People share messages—in some cases written by ChatGPT—they sent to Airbnb to request that no services be allowed on their properties. Airbnb didn't comment on the number of hosts who have opted out, but says those who do won't be penalized in search results. Hosts can also choose to only allow specific services. Airbnb says service providers must have liability insurance appropriate for their business. The company's AirCover policy also includes liability coverage. Hosts say the policy has many exceptions. Marie Moreau has done massages for tourists staying at vacation rentals in the Orlando, Fla., area for years, long before Airbnb approached her about listing her mobile massage business on the platform. So far, she says, she has had a few bookings through the platform, and they all went smoothly. Moreau says she understands why hosts might be hesitant to allow third-party providers. 'But the more restrictions you put on something, the more it doesn't really look appealing to the public,' she says. Airbnb, which has active listings in more than 150,000 cities and towns, debuted its offering with 10 categories of services in 260 cities. The company has said it plans to eventually include hundreds of service categories in new cities. Locals can also request services at their own homes or book an activity that requires going to a spa or gym. Other online travel companies, like Expedia and offer experiences, but in-home services sets Airbnb apart, says Kevin Kopelman, an analyst at TD Cowen. The challenge for Airbnb will be convincing travelers to embrace the offering, he says. Write to Allison Pohle at SpaceX to Invest $2 Billion Into Elon Musk's xAI Can Pittsburgh's Old Steel Mills Be Turned Into an AI Hub?
Khaleej Times
13-07-2025
- Business
- Khaleej Times
Dubai's short-term rentals surge as overall market shows signs of cooling
Dubai's short-term rental market is enjoying robust growth across all pricing tiers, even as the broader rental market begins to show signs of stabilisation amid an expected surge in new housing inventory. The shift reflects a maturing market where tenants are increasingly weighing short-term flexibility against long-term commitments, and where new government initiatives and increased supply are bringing balance to previously overheated segments. According to new data from Bayut and dubizzle, demand for both monthly and daily rental formats has remained strong, particularly in lifestyle-centric areas such as Dubai Marina, Downtown Dubai, Business Bay, and Jumeirah Village Circle (JVC). The growth comes even as the general rental market enters a more measured phase, following nearly two years of aggressive rental increases. Dubai's most searched rental areas in the first half of 2025 reflect this dual trend. While tenants are drawn to the flexibility and convenience of short-term leases, the long-term segment is cooling thanks to an expected delivery of over 72,000 new housing units this year. 'Dubai's rental market is starting to stabilise after a period of rapid growth,' said Haider Ali Khan, CEO of Bayut and dubizzle and a board member of the Dubai Chamber of Digital Economy. 'With more supply coming online, rents are easing, and tenants are benefiting from greater choice and affordability.' Luxury short-term rentals continue to command premium pricing. Monthly apartment rents in Dubai Marina, Downtown Dubai, and Meydan City now range from Dh7,180 to Dh16,310. In the villa segment, Palm Jumeirah and Dubai Hills Estate remain top choices, with monthly rents stretching from Dh93,330 to Dh171,430. This sustained interest in waterfront and upscale suburban living reinforces Dubai's global appeal as a luxury lifestyle destination. In the mid-tier segment, JVC leads for monthly apartment rentals with an average of Dh7,090, followed by Business Bay and Al Barsha, where studio and two-bedroom units start at Dh4,630. For cost-conscious tenants, International City, Deira, and Bur Dubai offer attractive options, with monthly apartment rents ranging between Dh3,080 and Dh12,990. Among villas, DAMAC Hills 2 (Akoya) is gaining traction for budget rentals, offering family-friendly homes from Dh12,960 to Dh15,750 a month. Daily rentals are also seeing consistent demand. Downtown Dubai, Jumeirah Beach Residence, and Dubai Marina are favourites for daily luxury apartment stays, with average rates between Dh516 and Dh762. Villas on the Palm Jumeirah command up to Dh6,960 per night — a 14.6 per cent annual increase, reflecting persistent demand for exclusive beachfront experiences. Mid-tier daily rentals remain active in JVC, Business Bay, and Al Barsha, with average rates from Dh384 to Dh472. JVC, in particular, saw a 5.6 per cent increase, averaging Dh415 per day. For affordable daily rentals, Bur Dubai, Deira, and Dubai Silicon Oasis offer compelling choices, with rates between Dh206 and Dh269. While Bur Dubai saw a modest 5.3 per cent decline, it remains a preferred destination for value-seeking renters. Bayut's Smart Rental Index also suggests long-term rents are reaching a plateau. While certain areas continue to see gains, the pace of rental hikes has slowed. Affordable apartment rents rose by 7 per cent, although select units in Bur Dubai and Deira saw decreases of 6.2 per cent. Mid-range apartments posted modest growth of 1 to 6 per cent. Interestingly, asking rents for luxury apartments dropped by 1 to 5 per cent overall, though some properties in Downtown Dubai and Dubai Marina bucked the trend with increases of up to 3 per cent. In the villa category, affordable units recorded gains of up to 9 per cent. Mid-tier villas rose by up to 7 per cent, but certain configurations in Al Furjan and JVC saw notable drops of up to 13 per cent. Luxury villas were more volatile — 5-bedroom units in Dubai Hills Estate surged by up to 53 per cent, driven by high demand and limited new inventory, particularly in premium enclaves like Palm Hills, Golf Place Terraces, and Maple. In contrast, 4-bedroom luxury villas saw price declines of 1 to 9 per cent. Area preferences also shifted slightly in response to price movements and supply dynamics. Bur Dubai and Arjan have become increasingly popular for affordable apartment rentals, while Mirdif and Damac Hills 2 lead in budget villa offerings. Among mid-tier options, JVC and Business Bay continue to attract steady demand. For luxury seekers, Downtown Dubai and Dubai Marina dominate the apartment scene, while Dubai Hills Estate and Damac Hills lead for high-end villas. Experts suggest that Dubai's evolving rental market — characterised by more measured long-term rates, growing short-term flexibility, and a spike in ownership interest — points to a more balanced housing ecosystem. Initiatives such as the Dubai Land Department's First-Time Home Buyer programme and the rollout of tech-enabled brokerage platforms are also nudging renters toward ownership. Property experts expect further shifts in the market as more units enter the pipeline in the coming quarters. But for now, the short-term rental sector is clearly thriving — fuelled by lifestyle demand, digital nomads, and the city's enduring allure as a global hub for work and leisure.
