Airbnb is one of the fastest growing components of the hospitality industry. We offer short term rentals as a solution for may of our investors. Laws are changing all the time so I try to keep this page current.
Here are the top 5 reasons why people hire us to manage their short term rentals:
- We are Superhosts. A SuperHost means we have hundreds of great reviews because we have this dialed in. You can check us out here: https://www.airbnb.com/users/44212545/listings.
- We are licensed property managers. We are monitored by the Real Estate Division and have the credentials to manage property.
- We use the latest property management software. This enables you to login to your account 24×7 with any mobile device or computer to get reports.
- We have a team of 6 property managers and a large staff to provide you with support. You can count on your property being handled.
- The owners of Limestone Investments have been managing properties for over 25 years. We provide you with a wealth of knowledge and experience.
Before you get too excited about turning your property into a short term rental, here is some important information you need to know. Very few properties are eligible to become licensed.
- Properties grandfathered in the township of Las Vegas 2019.
- New properties in the Township of Las Vegas that are 3 bedroom or less AND occupied by the owner. This pretty much eliminates anyone investing now or in the future.
- Some high rises. Each high rise has their own set of rules. We don’t recommend these anyway as you would be super lucky to break even.
- Properties in Henderson who meet short term rental requirements. This page goes into that detail on those requirements and what we recommend.
Un Licensed (you can’t get a license)
- Owner unoccupied properties in the township of Las Vegas.
- Properties in the township of North Las Vegas. NOTE: They don’t enforce code very much. If you want to run with scissors and don’t have a house or plan on purchasing a home in Henderson, this would be your best gamble.
- Properties in Clark County (not in a township). For example, the township of Paradise (aka The Stri) is in Clark County. Clark County is super aggressive on code enforcement. There is a 90% chance you will get caught within 6 months.
- Properties with an HOA. This pretty much wipes condos, townhomes and any house built after 1985. HOAs in Summerlin, Anthem and Southern Highlands are super aggressive. There is a 95% chance you will get caught within 6 months.
We can still manage your short term rental but we are not liable if you are shut down by an HOA or the local government. If for any reason, some government entity or local association prevents you from operating and Airbnb location, we will not be held accountable.
The property needs 3 conditions met before we start advertising:
- The property must meet our safety requirements. Fire extinguishers, smoke detectors etc.
- Limestone Investments must be “additionally insured” by your insurance company (this doesn’t cost you anything).
- The property must be properly furnished. This spreadsheet has basic requirements. The more features, the more money. If you want to furnish your own property, go for it. We charge $2000 set up the basic furnishings and will provide you an estimate up front. There is a lot to furnishing a property.
We charge 8% of the gross amount collected AND $500 to start up.
- All these fees need to be paid up front ($500 start up and $2k furnishing is optional)
- We will get photos & video of the property.
- The Airbnb add will be created and you will have an opportunity to approve the add. You will be the co-host and we will be the host.
- We will settle your account near the end of each month. That settlement statement will include a report that has your income and expenses.
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.
Where can an Airbnb potentially be licensed with a license?
The yellow 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 thousands of Airbnbs that I see advertised are operating illegally and don’t have a license?
Yes. 95% of those Airbnbs you see on the web are not licensed and could be fined or shut down for code violations. The meager 2% who are operating legally are now required to get a special use permit no later than July 2019. Of the 8,000 or so properties, only about 150 are properly licensed.
How can I get caught?
Your neighbor will snitch on you. If you buy a massive 5 bedroom house with a pool in an upscale neighborhood, your neighbor who drives a lamborghini is going to be pissed off when he finds condoms in his front yard after 30 people threw a party at your Airbnb. These “High Profile” houses are going to be the first on the list of code enforcement efforts. If you get a modest home in a blue collar neighborhood and offer a case of beer to Johnny Lunchbucket next door, you will probably get away with a short term rental for a very long time.
What happens when I get caught?
You will get a love letter from code enforcement. We deal with code enforcement all the time. The love letter essentially states that you have x number of days to remedy the problem or you will get fined. Every love letter we have received had about a 30 day remedy and occasionally we had to ask for an extension. We were never denied an extension and the code enforcement officers we deal with are super cool. We know all of them and they all know us. We take care of code enforcement issues promptly and they love us for that. We go to “Plan B” which is to get longer term tenants. Less profitable but that’s life.
Should I purchase a short term rental 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 into the HOA police. 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 sharper teeth than the government and they can legally eat your property.
Do all HOAs have 30 day minimum lease requirements?
No. There are only a handful. You will have to hire us to find out where.
Are their many properties available that can be licensed near The Strip?
No. What what what? That’s right. The Strip is technically in the township of Paradise. Pay close attention to the diagram above.
What’s the purpose of having a short term rental if I can’t have it by the strip?
You will still make more money than a regular rental. You will make about 25% more than a regular rental. We have a property in North Las Vegas (about 12 miles from the Strip) that generates more than amount it used to rent for. Folks who have been staying there are not interested in gambling or partying like rock stars.
About how much money will I earn with a short term rental?
You will make about 25% more than a regular rental. Your income will be about 3 times a regular rental but once you subtract out management fees, web platform fees, cleaning and utilities you will get 1.25 x market rent. Your property doesn’t really become profitable until about year 2 after you have paid money to get the place furnished.
What are the chances the government will loosen up and allow more short term rentals?
As a member of 2 short rental associations, I can tell you it’s not anytime soon. As of 2/7/20, here are the latest rumors:
- Las Vegas – Not anytime soon. They just finished a Tijuana dance with us and are exhausted. The only concessions we got were co-habitable 3 bedrooms. Uggh. It will take a few more terms before we can wrestle with them again. I estimate a new battle in about 2024 and we may get some more concessions.
- County – Not anytime soon. They have geared up more code enforcement and are convinced they can win this battle. They have a lot of resources to tackle unlicensed operators. My guess is it will take a decade for more enlightened government officials get elected.
- North Las Vegas – Rumor is they are considering adopting Henderson’s compromise to license some short term rentals. They don’t have the resources to tackle all those unlicensed operators and learned they will make some money on operators who know what they are doing. North Las Vegas is perpetually broke so licensing would solve a lot of problems. They have witnessed Henderson’s success in corralling all those terrible operators.
What can I do if I start up a short term rental 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 minimum 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 minimum 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 short term rental?
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 $260k 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 $520k with a pool, will make about 50% more than a $260k property. You would make more money with 2 $260k properties than you would with one $520k property. By the way, you are also more likely to get caught with one big expensive property in a “A” neighborhood than you will with 2 properties in a “C” neighborhood.
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 neighborhoods in Las Vegas) depreciated 11% over in 2018 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 a 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 $2000 to furnish a 3/2/2. This page covers a basic 3/2/2. This Airbnb cost about $12k to furnish. It was done with love, care and stuff we found on Craigslist. One thing we have discovered is that it is not practical to have 2 cooks in that kitchen. You either furnish it or we furnish it. We are not going to both work on furnishing it.
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 Architectural Digest. We honestly don’t care if you roll up your sleeves and drive all over town in this heat picking up couches and lamps. If you want to see an example of our work, the video below will show you what we put together with used furniture from craigslist and yard sales for about $12k.
Now that it’s furnished and ready to go, how is the short term rental managed?
We assist you in setting up the property in our name. Here is our Start Page. That shows you how we crank up your short term rental. You 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.
How much do you charge?
$500 to set up and 8% of the gross AFTER Airbnb pays us. What is confusing is the term “Co-Host”. Most people who over “Co-Hosting” are not licensed property managers and they charge anywhere from 10%-15%. Airbnb does the process of splitting out that money. Our process is different. We do the splitting. We collect all your money and then give you 92%. We have to do it this way because we are doing all your cleaning and repairs.
How and when do I get paid?
On or about the 25th of the month, we will send money to you electronically. 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. Here is a video of how it works and what it looks like.
Do you take care of all the cleaning, check ins and check outs?
Yes. Cleaning fees will vary depending on the size and complexity of your lodging. A 3 bed, 2 bath house about 1400 square feet runs about $250. That includes cleaning and linens. That number will change as we dial in your property. Little piggies who leave your place a mess may cost more.
How good are you?
We rock. Technically we are a SuperHost which means that when you are posted on Airbnb, your property falls in that category. Some travelers only book SuperHost properties because they don’t want to deal with amateurs.
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 7 property managers and a team of maintenance & accounting folks that take care of over 400 doors. Grab another cup of coffee and dig deeper…