To Sell, Rent, Or Airbnb?

Ayvio Marketing

02 March 2020

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To Sell, Rent, Or Airbnb? Three Options When Moving!

 

When you have received an offer for a company in a different city, it’s an exciting time! You’re looking at new challenges and a new city to explore. For homeowners, there is a decision to make. Historically, you would decide if you want to sell your property and buy another one or if you’d want to rent your property out for passive income. Now, there’s a third option that homeowners can consider: turning their old place into an Airbnb!

As you might expect, each option has its pros and cons. Let’s take a look at each choice to see which is best!

 

Sell Your Home

Traditional wisdom has always said that you should sell your home and buy a new one near your new place of work. Sometimes this is the right approach, especially if your home value has appreciated significantly compared to your new destination. You might be able to sell your property and have some extra money left over to have fun with or pay down debt.

 

However, selling your home has an emotional cost as well, and there’s no opportunity to “go back.” What if you don’t like the new job and the city after all? Depending on where you’re moving, it can be a significant change that you might not like (e.g., if you’re going from a small town in Indiana to New York). Selling your home, however, has no way back if you change your mind.

Rent Your Home

Given the above pros and cons, some people elect to rent their property out. It gives them some passive income (assuming they use a property manager), and it also lets them retain their old house until they know they’ll like the new position. If the home still has a mortgage, the rent will often be enough to cover the mortgage, allowing the homeowner to build equity. If there’s no mortgage, then the rent can help cover the costs of owning the new house close to work!

 

The problem with this model is that rents have historically not been super high relative to property prices. It’s not uncommon to have a home worth close to $500,000 that rents for $2,000 per month (a 5% ROI, excluding potential appreciation, on an annual basis). Unfortunately, that barely pays the mortgage!

 

Airbnb Your Home

The final option provides the best of all worlds. By partnering with a hospitality company like Ayvio, you can transform your home into a world-class Airbnb destination, which will maximize your Airbnb income!

 

Our partners see an estimated 9-10% ROI. It’s not uncommon for homes that cost $300,000 or so to have nights that cost $100-$150, especially in high-demand areas like Florida (by Disney World), Los Angeles, and so on.

 

Since Ayvio takes care of the homes for you (including cleaning, maintenance, etc.), you can keep your old house but earn maximum money from it. Depending on the circumstances, you might even be able to pay your new mortgage and your old one with just the Airbnb income!

 

Speak With Us If You Want To List Your Home With Airbnb

If you’re moving to a new state, but want to keep your old home, get in contact with us today. Ayvio, a hospitality company, has partnered with homeowners all around the country to provide high ROI for owners and phenomenal experiences for guests. We can do the same for your place!

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