I’ve written a few times about my desire to start generating some of my future passive income through real estate. I’ve looked into:
I also looked into the idea of buying real estate like a condo for example and then renting it out through short term rentals thanks to sites like AirBnB. One of my biggest fears was the time that would be involved, especially needing to meet those renting to give them the keys, etc. Since then, I’ve continued to do my own research and did stumble into a few different things:
: I’m not associated with this business but think it’s brilliant. Basically, it’s a way to open a door through a smartphone. This would be very helpful because I could own a condo in another city and not have to manage the key part. Basically, the renter could simply call me (or anyone else I decided) to have us open the door remotely. Once that’s done, the person could simply get the key inside the condo, stay there for a few days and then leave the key inside (I could lock the condo remotely as well). This simplifies things significantly. I would then only need to have someone to do cleaning between visitors, etc. Yes, there might be a few instances where I’d need more but in 95% of cases, I could do everything remotely which is a big difference.
–Legal Complexity: While one issue is getting easier, others are not. AirBnB, which is the biggest “short term rental” player has been facing an increasing number of legal challenges. Both in Quebec and in New York State for example, those renting through sites like AirBnB have been acting illegally. That is also the case in many other places around the world. Why? Partially because the government wants to keep control of such activities so it wants to issue licences, charge taxes, etc. Another part of the problem is that hotels are increasingly seeing this type of activity as a threat to their business model so they are lobbying very hard to limit the growth.
Even in places where it’s currently happening, it’s usually unclear if it the government will come out with specific legislation to address this which makes it very difficult to invest money and counting on these returns to keep up. There are still some very successful stories coming out, here is one great example:
Clearly, this strategy has been working very well for several real estate investors and does end up providing decent income. It does require some organization, especially at the start but I get the feeling that once it’s set up correctly, it can become a solid source of income.
I’ve also heard from a few readers who’ve had success making me increasingly tempted to try this out. What about all of you?
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