Dave Ramsey is no stranger to keeping it real. And recently, the straight-shooting podcast host kept it really real with a caller who asked for advice about Airbnb rentals.
A resident of the beautiful TopSail Island, Cathy, figured purchasing property to rent on Airbnb would be a great way to earn more money since the island attracts quite a lot of tourists. She planned to use the money from her home to buy a $280,000 property to do just that.
“You have a very good life. Don’t go screw that up with an Airbnb,” Ramsey warned.
Renting on Airbnb: The Fine Print, According to An Expert
Renting out your space on Airbnb might sound like a great idea — you can earn extra income, offset your housing costs, and even meet cool, new people. But according to Ramsey, renting on Airbnb is a lot like managing an entire business.
“This is not: ‘I’m going to just go to the mailbox and collect a bunch of checks,'” Ramsey explained. “Airbnb is a lot of work.”
Airbnb hosts have a lot on their plates. This includes maintaining the property, communicating with guests, ensuring guest safety and security, providing support, cleaning the space, and more. Plus, not every renter is a responsible guest. “They’ll destroy your property,” Ramsey advises.
As if that wasn’t bad enough, many cities are prohibiting the types of homes that qualify. They’re also starting to request costly permits, levy extra fees, and only permit renting out your main residence.
Achieving Airbnb Success: Easier Said Than Done
In the world of personal finance and real estate, Dave Ramsey’s advice has always been known for its no-nonsense approach, and his advice to Cathy is no exception. While the allure of Airbnb income may seem tempting, it’s not all sunshine and profit. From property maintenance to guest interactions, safety concerns, and regulatory hurdles, the path to Airbnb success can be fraught with challenges. So before diving headlong into the world of short-term rentals, it’s important to do your research and make sure you’re actually up for the challenge.
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