AirBnB Cancellations – What to Do?
As coronavirus continues to spread across the world, many vacation rental companies, such as Airbnb, continue to expand their policies to allow more leniency in cancelling. This change, welcomed by travels, has allowed many travelers to cancel their reservations penalty-free. We have noticed many renters cancelling their bookings and reservations and choosing to stay home during these uncertain times. While we understand the desire to cancel, this puts pressure on the owners and hosts of these rentals. The cancellations are resulting in an unexpected loss of income. There are many discussions happening on the Airhosts forums, a forum for Airbnb hosts, sharing their financial concerns about the abrupt loss of income and inability to refund that money.
We wanted to share 5 Tips on how you can find local renters that might be interested in renting your AirBnB.
- Separated families that need somewhere to stay
As recommended by the CDC, social distancing and quarantining is crucial in limiting the spread of the coronavirus. Unfortunately many families have faced this reality and have had to quarantine away from their family. This reality can cause a lot of stress and uncertainty, having a place to stay where renters feel safe is important. As mentioned in our previous blog post, linked here – we love & care about our family, clients, prospects, & fellow humans. We want to do whatever we can to make them feel safe and comforted. These families might prefer staying in an Airbnb for the comfort, cleanliness and more distanced from others than a hotel would be.
2. Traveling Nurses On the Front Lines
According to a recent poll, there are approximately 25,000 traveling nurses in the U.S. right now. The demand for travel nurses has continued to rise as healthcare needs increase due to COVID-19. As these nurses travel and remain on the front lines, they may be interested in renting an Airbnb to comfort them through these unprecedented times.
3. Other Essential Industries Are Traveling for COVID-19
The demand for typical grocery store items has significantly increased. As we saw with toilet paper, hand sanitizer and bottles of water….People are eager to stock up their homes to be prepared. With this increase in demand, the agriculture and food service industry has increased their travel to ensure stores are stocked around the world. This, among many other industries, have increased travel frequency during these times to ensure essential needs are met. As travel increases in this fields, people are searching for safe places to stay to ensure they stay healthy as they travel.
4. Have a Furnished Rental via the MLS
Attract local renters with a furnished rental on the Multiple Listing Service (MLS). MLS is a search tool that helps find listings for sale or rent by Realtors and other realty professionals that are members of your local MLS. Once you have identified your ideal guests, understand the needs of your core audience and furnish your rental accordingly. Comfort is key so achieving a cozy ambiance is important. Check out more tips and tricks here for furnishing tips.
5. Add Your Airbnb to Industry Travel Sits
Here are some we recommend!
- Transplant Housing – linked here: https://www.transplanthousing.com/.
- Transplant Housing costs $89 dollars for a 365 day listing.
- Furnished Finder – linked here: https://www.furnishedfinder.com/list-your-property.
- Furnished finder costs $99 for a 365 day listing.
For more information on COVID-19, check out our recent blog post here: 5 Things We are Focusing on During Covid-19
Read Full Post | Make a Comment ( None so far )What the hoo is an ADU?? Maximizing your Southern California Real Estate
Have you heard of an ADU?
Accessory Dwelling Units are additional legal units on your property, and they can help you earn BIG bucks. If you’d like to run a duplex or generate additional income without buying an entire new property, then adding an ADU to your lot is a GREAT option. ADU’s can cost anywhere from 20K-200K, which is waaaay cheaper than a ‘unit’ in today’s Southern California real estate market. That said, not everyone has an additional 20-200K laying around to seize this opportunity, so let’s learn how you can use other people’s money to make some of your own!
Renovation loans are NOT construction loans, so if you have never heard of one… read on. There are multiple options for reno loans, so it’s about finding your best fit. Today we were at Eric C Miller’s Finance of America’s presentation and got some details & highlights for you. Finance of America highlighted how this process benefits you!
Orange County Renovation loan process in a nutshell:
Pre-qualification –> Offer Accepted –> Disclose –> Underwriting conditional commitment –> Assign Project manager –> Collect credit conditions –> Project Scope & bids –> Appraisal –> Clear to Close –> Sign Docs –> Close –> Begin Renovations
Fannie Mae Homestyle Renovation Loan
- Utilizes a construction project inspector sourced by lender
- No minimum in repairs
- Inspection prior to draw disbursements, up to 5 draws
- All repairs and improvements must be attached to property, and supported by appraisal
- Borrowers have 6 months to complete improvements
- Repairs must begin within 30 days. (it’s ok if permits are the delay…you can pull permits on a property you don’t yet own)
They can be FHA or conventional, and they are a fully amortized single close transaction. 98% of the time they appraise on resales, so don’t worry if you’re buying resale.
FHA 203K – limited
- nothing structural,
- limit of 35K,
- repairs must be completed in 4 months
- limit of only two payments to each contractor
FHA 203K – standard
- can tear down the entire property but MUST use the entire foundation
- utilizes a HUD consultant.
- 6 months to complete improvements
- can loan up to FHA limit for the county, high balance eligible
- owner occupants only
- Contract lingo: “The borrower has applied for Section 203k financing, and that the contract is contingent upon mortgage approval and the borrowers acceptance of additional required improvements”…this must be in there, but is not necessary in the purchase agreement.
Things to know & next steps:
- Choosing the right contractor and renovation team is critical! Always get multiple quotes. If you’re looking for a forward thinking Orange County ADU company, check out RC Smith Design & Build.
- 30 day escrows won’t fly, renovation loans take 45-60 days.
- Reno loans are TOUGH. You’ve got to coordinate bids, contractors, and make deadlines. If you’re looking for an ‘easy button’ into homeownership, this may not be it 😉 BUT then again…you could try buying one of these Amazon ADU’s and avoid MOST of the contractor back and forth 🙂
- ADU regulations are different and ever-changing. Here’s an OC ADU resource to get started. Always check with the city to find out your guidelines before beginning work or submitting offers!
Did you know most people spend 15K on their home the first year they buy it, and they statistically put it on credit cards? Ouch. Don’t be that guy, there’s a better way! Call or text Angie to start exploring your best ADU options at 949-338-7408 or email Angie@AskAngie.com
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Orange County Real Estate Success 