Everything you need to know about Airbnb long term rentals: an ultimate guide for hosts and guests!
Millions of people around the world open free accounts with Airbnb so that they can list their properties as places to stay and also be able to book accommodations at amazing places all over the world.
When we think of Airbnb, we think of short-term stays. We think of nearcations and staycations at wonderful tourist spots as well as the ability to mingle with our Airbnb hosts and surrounding locals at a much deeper level.
With Airbnb, you are able to get great stays at significantly cheaper prices compared to hotels.
Nowadays, however, more and more people are using Airbnb to book longer stays. In fact, Airbnb has introduced new filters on its booking page, allowing a guest to select long-term stays as an option.
Long Term Vs. Short Term Stays
By Airbnb’s definition, long-term stays are bookings that are 28 days or longer, while short-term stays are bookings for 27 days and below.
Why does anyone need to stay in an Airbnb for such a long time?
Let’s check out some examples of people who may need this service.
College Students
Many college students look for a place to stay for a semester or two while they settle down in the city and look for rooms to rent in the process. Airbnbs offer more privacy and are more convenient compared to traditional rentals because these students would not be required to sign a lease agreement or put down a huge deposit.
Airbnbs are also frequently real homes (as opposed to hotels), and this gives you more functional space to do your work, organize your wardrobe and generally is a more practical option for a long-term stay.
Business Travellers
Many business travelers stay for extended periods at a certain place while doing research, studies, and also business. Those coming for research can stay for months on end, and an Airbnb that offers long term rentals provide better rooms and amenities compared to a cheap hotel or a hostel.
A huge bonus is if the property owners are around, these digital nomads will be able to get a first-hand guide on what to do and where to go within the area.
Property Managers and Owners Going On Extended Holidays
There are property owners who create an Airbnb listing offering their entire home for a long term stay. They then use the earnings from these residential rentals to fund their holidays, such as going to countries with warmer climates during winter. At the same time, their long-term guests will be there to watch their house (and pets) for them. It is truly a win-win situation indeed!
How Do Long Term Airbnb Rentals Work?
The guest books several months’ worth of stay with the host. He makes an initial payment for the first month and then is able to move into the rental property. Airbnb will ensure his credit card is charged on time every month for his monthly stays.
For example, if the guest moved in on April 5th, he will be charged every 30 days from that date onwards.
If a guest decides to move out on his own accord before the end of the billing cycle, he may forfeit that particular month’s rental. The host may (but is not obliged to) refund the prorated balance.
What Are The Pros And Cons Of Long Term Airbnb Rentals?
Pros And Cons Of Long Term Airbnb Rentals For Hosts
If you’re a host, a long-term lease may sound pretty good to you right now – but there are pros and cons to everything, so let’s check them out.
Pros Of Long Term Airbnb Rentals For Hosts
Consistent Monthly Rentals
Having a guest sign up for a long term Airbnb rental with you is great because you get consistent rental income for your property. You will not need to contend with having zero guests or experience sporadic booking for a set period of time.
More Convenience
With a long term rental, you’ll not have to go through the process of vetting prospective guests over and over for the next few months. You’ll have peace of mind knowing that your current Airbnb guests are good ones and will take care of your property well.
Cons Of Long Term Airbnb Rentals For Hosts
A Smaller Profit Margin
Many hosts who offer Airbnb long-term rentals also offer a monthly discount off their regular rates. Offering discounts for long-term renting is the best way to entice guests to make long-term bookings with you. As a guest, I’d want the best option of getting full amenities at affordable rates.
However, this also leads to a smaller profit margin, making you less money.
Less Freedom To Manage Your Property
Having long-term renters may make it hard for you to carry out maintenance or upgrading works on your property.
You may also have to make changes to earlier plans. For example, you may have invited some friends over for a weekend next month, but now that your property has guests, it is no longer convenient for people to come over.
Pros And Cons Of Long Term Airbnb Rentals For Guests
As a guest, successfully booking an extended stay at a dream property sounds amazing, and it probably is. However, it is always good to comb through your options before coming to a decision.
Pros Of Long Term Airbnb Rentals For Guests
Less Hassle
You’ve found a great place in a great location that allows you to walk everywhere without having to take the tube or the cab. On top of that, the host is awesome and gives you lots of tips on how to get around and the best places for food. You spend less time planning your route and more time enjoying the sights.
Clear Travel Plans
For the next few months (at least), your family and friends are able to get in touch with you more easily, knowing that you’re in a definite location for a long period of time. Important documents can be conveniently forwarded to you because you’re not constantly on the go.
Cons Of Long Term Airbnb Rentals For Guests
Plans Change
If something happens and your plans need to change, you may have to forfeit the charges on your card and move to another place urgently. As mentioned above, the host can but is not obliged to refund you any prorated amount.
Similarly, if you feel you do not like where you’re staying and decide to move out precipitately, you’ll have to come up with a good reason to move out and still stay on good terms with your host – solely because the both of you want to be able to give each other good ratings on Airbnb.
5 Tips For Hosting Monthly Airbnb Rentals (For Hosts)
Planning to list your property for long-term renting? Here are the five top tips you’ll need to ensure a smooth and worry-free rental.
1. Be Aware Of Local Laws
Different places have different laws, so it is extremely important that you know all the local rules and regulations associated with rental, eviction, and tenancy.
In some places, renting your property for over 28 days means your guest becomes your tenant. You are then required to conform to traditional renting regulations, meaning coming up with a long-term rental agreement and collecting a security deposit from your guest.
It also means that if the guest misbehaves, it will not be as easy to terminate the rental agreement.
The likelihood of you having to really manage all these are small, however – because Airbnb allows or helps you to vet your guests in advance, charge them rental on a monthly basis, as well as hold them responsible for any violation of rental policies.
For example, in San Francisco, California, local laws state that as a host, you may rent out your property and still be absent from the property itself, but only for up to 90 days.
You are then required to come back and stay in the said property after 90 days, failing which you’ll be subjected to a daily fine of $484 for first offenders.
2. Implement Clear House Rules
When you have guests over for longer-term stays, having clear house rules is a good idea to avoid misunderstandings and awkwardness, especially when all of you are staying together. These house rules should be clearly stated on the online listing of your property.
Several examples of house rules include:
- Pets: Whether a guest is staying for months or renting short term, you should always declare if you have pets and what your rules regarding pets are (if your guests opt to bring theirs).
- Smoking: Whether it’s prohibited or allowed in certain areas only
- Availability: Whether you’ll be also staying on the property with them or if you’ll be at a different location and will only turn up if they need urgent help
- Who To Call: Whether you’re the one in charge or if your house is managed by a property management company.
- Cancellation policies
In short, house rules should always apply, regardless of whether the booking involves long term or short term renting.
3. Good Amenities
Competition is rife, so you want your property to stand out among your competitors. By offering good amenities, you’ll be able to secure more bookings!
Examples of amenities that are really popular nowadays include:
- Strong, high-speed wifi connection
- A hot tub
- Air-conditioning or heating
- Free parking
- A kitchen
- A washing machine and dryer
- Location independence – being next to subways or bus stations allows your guests to easily reach places they want to go, so they don’t spend too much time sorting out transportation
4. Screen Your Guests Carefully
Airbnb allows you to vet your guests in advance so you can reject those you feel are not a fit for you and your property.
There are also many testimonials from both hosts and guests that you can read up on so you know if a guest has a great track history or not. It is also recommended you perform credit checks on your guests to avoid them defaulting on payments.
5. Get Someone To Manage Your Property For You When You’re Not Around
If you’re going on an extended holiday or will not be around for a longer period of time, hiring a property management company or a real estate investor to manage your guests and home for you will be a great idea.
That way you will not have to give out your phone number and just have someone experienced be in charge of your vacation property while you go on leave.
3 Tips For Renting An Airbnb Long Term (For Guests)
If you’re planning to rent an Airbnb for a long period, there are some things you should definitely look out for.
1. House Rules
House rules differ from property to property. In some cases, they differ for long-term tenants and those coming in for short stays. Always go through the rules carefully to see if they fit you or if you are able to conform to them. If not, check out other residential units that better suit your personal requirements.
For example, some hosts have pets, and some don’t. Some allow smoking while others don’t. Some require quiet moments (several hours), while others give you free rein. Check all these carefully on the hosting platform before making a decision.
2. Be Aware Of Cancellation Policies
Cancellation policies may differ for long term stays as opposed to short-term vacation rentals. Look through the policies carefully and note down extra service fees and other additional fees you may be subjected to should you decide to move out earlier than the agreed duration of stay.
Policies also differ between the different types of residential rentals. For example, a house within a multi-unit building may come with more house rules than a landed property, solely because a multi-unit building in itself already comes with a host of regulations.
3. Check Out Your Host’s Profile
Reading and understanding what your host is like is probably a great place to start understanding the person you’ll be staying with for the next few weeks (or months). This is extremely important because you need to get along with each other (if the host is going to be around during the entire duration of your stay).
A short-term rental host may be renting a room out to you and hence will be there constantly, so be prepared to compromise and make friends. If you prefer to be alone and not have to make conversation with people, then looking for a specific residential unit that allows you to stay on your own will be the best way to ensure that your vacation turns out the way you want it to.
Airbnb Long Term Rentals: Summary
Committing to a long term stay means establishing that particular property as your primary residence for the next several months. Hence the first place to start will be to check out the location, followed by the pricing, amenities, host profile, and house rules.
When hosts and long-term tenants are well matched, this arrangement can create satisfaction both ways and also provide a huge benefit in the sense that one gets consistent monthly rentals while the other gets the desired place to stay at a great price.
For hosts, long-term rental properties are becoming just as popular as short stays – in fact, certain areas of New York have seen increased property prices and gentrification due to long-term stays, bringing a much-needed boom to the housing market after its crash during the pandemic.
Done correctly, long term Airbnb rentals can bring about a great experience for both host and guest, creating satisfaction all around.
About The Author Of “Airbnb Long Term Rentals: A Guide For Hosts And Guests”
Kristy is a pharmacist turned funnel builder. She builds funnels and copywrites for 7 figure businesses. She is also an avid blogger, loves geeking out over SEO, and writes regularly for publications on Medium.com. She shares her journey and tips for freelancing at Kristy Ting.
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