Investing in Luxury Short Term Rentals

Today, almost everyone is familiar with AirBnB and the new way travelers are planning and booking where they plan to stay on their vacation and business trips. Hotels and motels are finding it hard to compete with property owners, referred to as hosts, who are willing to open their properties up for complete strangers to use. To use, that is, as the host collects the rental fees. Becoming a host has become just as popular as it is to be the traveler who enjoys staying in a home, as opposed to a hotel.  

The new thing is, instead of any old home, why not go big and stay in a luxury home with all of the amenities that a luxurious life-style has to offer. But these travelers are not coming by themselves, they are bring the whole family… and their friends and their friends’ entire families.  

The right home, in the right Houston area, can be rented out on a short-term basis and collect rents that reach 6-figure amounts in a year. It is nothing for weekly rents to reach $5,000 to $6,000. This may sound to good to be true, but it is being done right now, all across the country. And the Houston area is no exception.  

This will not be just a vacation get away for your guests, it will be possibly a once in a lifetime get away vacation!  

The Luxury Home You Are Looking For

You don’t need a water view, although that would be nice. What you need is a house that can accommodate 8-10 people or more, comfortably, with all the bells, whistles, and adult-style toys you can think of.  

The number of ensuite bedrooms will be important. You want no less than four, but more is better. There needs to be at least six “sleeping rooms” in total so that there is room for large groups to stay together in the home. It’s all about what we like to call “heads in beds”. The more heads that are in your beds, the larger the weekly rental income will be.  

These homes usually are set up with larger dining rooms and fully equipped chef’s kitchens. There needs to be more than one gathering area for large groups to gather and be entertained. A pool with a patio or deck is also high on the list of wants for any property you are considering.  

The Toys Are Critical

If you can think about it, you need to provide it:

• Ping Pong Table
• Poker Table
• Pinball Machines
• Movie Projector
• Pool Table
• Popcorn Machine
• Golf Simulator and Putting Green
• Air Hockey
• Board Games
• Corn Hole
• Foosball Table

Is This Really Doable?

Yes! You may think, “A house that large is going to cost me at least $6 grand a month.” So what! The rental income is going to be close to that much for a week’s stay. Do you still think it’s too good to be true? Go to VRBO.com and search for luxury homes in Houston and see what other people are getting for rent for their luxury homes.  

You can invest in rental housing that may make you a few hundred or even a thousand dollars a year and have to deal with your typical renters. Or you can go the AirBnB route and maybe make $5K-$10k, if you are extremely lucky. Or you can go the luxury home route, deal with people that can afford the life-style, and possibly quit your day job with just a single, short-term luxury rental property.