Denver Real Estate 101Please join us for an informative workshop on Wednesday, September 27th, 2017 from 6PM - 7:30PM at the Ion Real Estate office. Ericka York of the Fairway Independent Mortgage
Part One How To Save For A Down Payment Using Air BnB
This is part of a 4 part series on creative ways to save for a down payment.
I’m all about residual income: rebates, blogs, online classes, you name it, so when I first heard about Air BnB I was extremely intrigued: rent a house, bedroom,or a couch in your area and people can come stay with you: cheaper than a hotel and puts money right in your hand. Sounds like a cool idea, right?
Of course, there are some inherent issues with letting people you don’t know stay in your home or in a house you own, though the horror stories are relatively rare and both the person who owns the home and the person renting the room have insurance on both sides, and can also rank the guests and the places they’re staying: meaning there’s accountability on both sides for everyone to be respectful. There’s a sense of trust in the Air BnB community, and I do think that for some homeowners and apartment dwellers, it might be worth the risk.
In Denver, for a private room( not a full home, just a private bedroom) Air BnB will rake in about $450/week if the room stays booked through the week. Now you do have costs, like any amenities you choose to offer, but let’s say you spend $50/week on cleaning supplies and amenities , that’s still close to $1000/ month, which for a lot of people is most of their rent or mortgage payment, meaning your other job can suddenly be put more into savings and eventually start really shoring up your savings accounts without changing that much of your routine.
In my apartment complex, the rules for guests are basically that they don’t break noise violations and they don’t stay more than 20 days out of a month. Local HOA rules might be different, and different complexes also probably have different rules. There’s also costs associated with having people in the home: maybe someone loses your spare set of keys and you need to pay to replace them, or if someone turns your air conditioner on really high one night and you need to account for your energy bills. These would certainly need to be taken into consideration.
If you’re interested in becoming an Air BnB Host, check out their website, https://www.airbnb.com/help/getting-started/how-to-host
As always, consult your own personal comfort levels before doing anything the internet suggests to you.
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