Can you help me purchase a property for an Airbnb?
Yes. We specialize in identifying excellent investment properties. Investors who want to be on top of their game START HERE. That page leads to further links that help even the most seasoned investors get the right property.
Can you guarantee that my property will be legal in Las Vegas?
No. We cannot guarantee that your property will be properly licensed. In July 2017, the City of Las Vegas has allowed licensing only with a Special Use permit. Properties that have been operating with a license will be required to have this special use permit by July 2019. All properties outside of the township of Las Vegas are currently operating illegally.
Where can an Airbnb potentially be licensed with a special use permit?
The pink area of this diagram. You will notice that very little of the metropolitan area of Las Vegas is actually in the township of Las Vegas.
Are you saying that all those hundreds of Airbnbs that I see advertised are operating illegally?
Yes. 95% of those Airbnbs you see on the webs are not licensed and could be fined or shut down for code violations. The meager 5% who are operating legally are now required to get a special use permit no later than July 2019. Since no one has that special use permit, it's completely unknown as to how difficult it is or how long it takes. The City of Las Vegas could conceivably make that process so difficult as to shut down all Airbnbs.
What would happen if I buy an Airbnb and simply take my chances of not getting caught?
We don't know. We have no insight as to how Clark County, North Las Vegas, Henderson or the other tiny little cities like Paradise are going to deal with all these illegal Airbnbs. Our best guess is that they will focus on the properties that get their attention. Party houses or short term rentals that create a nuisance to neighbors will probably get their attention first. Like traffic cops, they can't physically stop everyone so they will probably spank the worst offenders and let the others go.
Should I purchase a property for an Airbnb that is in an HOA?
No!!! HOAs are really against short term rentals for fear of party houses. Condos are more likely to get hit by HOA violations. All it takes is a pissed of neighbor to turn you in. If you cannot prove to the HOA that you have a tenant with a 30 day lease or more, they can fine you until you give up or they take your property. HOAs have teeth and they can legally eat your property.
Do all HOAs have 30 day minimum lease requirements?
Yes. We have not found an HOA yet that does not have a minium rental restriction.
Are their many properties avaialble that can be licensed near The Strip?
No. What what what? That's right. The Strip is technically in the city of Paradise. Pay close attention to the diagram above. The Strip is below the Township of Las Vegas. That little bitty section above The Strip is all that is near The Strip. That little section is in a rough neighborhood AND thousands of investors are fighting over what's available. Welcome to fight club.
What's the purpose of having an Airbnb if I can't have it by the strip?
You will still make more money than a regular rental. Preliminary numbers indicate that you will make about twice as much as a regular rental. We have a property in North Las Vegas (about 12 miles from the Strip) that generates twice the amount it used to rent for. Folks who have been staying there are not interested in gambling or partying like rock stars.
What can I do if I start up an Airbnb but the government or an HOA sends me a love letter to stop?
You can convert the property to a regular rental or make your minium stays 30 days. All the cities and nearly all the HOAs allow rentals for 30 days or longer. You could still advertise on all the short term rental sites and just set the minium stay for 30 days. An alternative is to convert it to a regular rental. It would not be the end of the world.
What is the best type of property to purchase for an Airbnb?
3/2/2s in a "C" neighborhood without a pool and not in an HOA. What the heck does that mean? That means a 3 bed, 2 bath, 2 car garage in an average neighborhood ranging in price of about $180k that doesn't have a pool and doesn't reside in an HOA. We have found that properties that doesn't fit that profile make a less return on cash. For example, a property that's in an awesome neighborhood that costs $360k with a pool, will make about 50% more than a $180k property. You would make more money with 2 $180k properties than you would with one $360k property.
My mom always told me "location location location." Properties in "A" neighborhoods appreciate more than "C" neighborhoods right?
Wrong. That phrase is big bunch of hoooey. There is no correlation between appreciation rates and neighborhood quality. For example: properties in 89144 (one of the most desirable neighboorhoods in Las Vegas) depreciated 11% over the last year because of all those buyers were obsessed with "location." ZILLOW REFERENCE. You are reading this page because you want to make money. Not to impress your friends.
Now that I have been warned that I may not be able to get a license, what happens after the property has been purchased?
You need to get it rehabbed and furnished. We can take care of that for you OR you can do it. We are a menu driven business. You can pick and choose what you want us to do. Generally we charge 10% over invoice for rehabs and we charge $1000 to furnish the unit. This page covers a basic 3/2/2. This Airbnb cost about $8k to furnish. It was done with love, care and stuff we found on Craigslist / yard sales.
What if I don't like your taste in furniture or finishes?
You can get someone else or do it yourself. We only offer that to help our investors. Furnishings are not our core business and we have never been featured on Architectual Digest. We honestly don't care if you roll up your sleeves and get sweaty.
Now that it's furnished and ready to go, how is the Airbnb managed?
We assist you in setting up the property in your name. This enables you to keep control of the property and/or enables you to fire us at any time. We will become the "co-host" which gives us control over bookings and discussions with the guests. You will get to see all the dialogue between us and your guests. The Airbnb dashboard is pretty cool and you can use that to reference your monthly statements.
How do I get paid?
On or about the 25th of the month, you will get money. We take all the income and subtract all the expenses to determine how much money to send you. We send that money to you electronically. Your owner portal also enables you to see vendor invoices so you can dig deep into anything you want.
What else should I know about your property management?
Jim Eagan, president of Limestone Investments, wrote a book on the subject (A Fistful of Properties). We have 6 property managers and a team of maintenance & accounting folks that take care of over 350 properties. Grab another cup of coffee and dig deeper...