If you’re an entrepreneur at heart, and if you love real estate, you may be entertaining the idea of renting out a multi-unit property on Airbnb in New York City. After all, Airbnb is an excellent avenue for generating passive income, right? Not exactly, according to travel and business expert Brian Ferdinand in a recently published article. Although Airbnb has developed a reputation for helping people to boost their incomes by owning and renting out vacation rental properties, the Airbnb model does have some drawbacks.
THE TRUTH ABOUT RENTING ON AIRBNB
In the recent article, Brian Ferdinand shares how in 2019, New York City officials decided to raid the city’s Far West Side Atelier condo. At that time, they issued 20-plus violations to building owners who violated New York’s short-term rental rules.
Why? Because it is illegal for units in buildings featuring three-plus units to be rented out for under 30 days, except for in situations where the building owners are actually present. This situation ended up being a major wakeup call for the owners of buildings and luxury apartments who were attempting to skirt the state’s short-term rental regulations.
WHY ADOPT THE CORPORATE HOUSING MODEL INSTEAD?
In light of the above situation, many aspiring landlords in New York are turning to the corporate housing model instead. With corporate housing, you typically rent out your property for several weeks at a time. By adopting this model, you can avoid breaking New York’s short-term rental laws and thus avoid getting into trouble with the authorities. This can save you money in the form of fines, as well as save you time and energy.
Corporate housing is an excellent temporary housing option for people who are taking extended personal vacations. However, it is especially popular among businesspeople who must take out-of-town trips for several weeks at a time. It is not uncommon for employers to house their traveling employees in corporate housing units, and likewise, traveling small business owners have flocked to this type of housing versus alternative options, such as extended-stay hotels.
Because corporate housing offers so much potential for landlords, it’s worth investigating how you can break into the corporate housing field in your area. As long as you have a passion for meeting clients’ unique housing needs, delivering top-tier guest service, and operating your own business, you can no doubt excel in the corporate housing world long term.
