What are the pros and cons of investing in serviced apartments?

Discussion in 'Serviced Apartments' started by nmb, Feb 19, 2016.

  1. John Wilson

    John Wilson Member

    With our first AirBnB we just set the price a little lower than the competition in the area until we had the first couple months booked up, and then increased the price a bit.

    AirBnB actually has something called smart pricing (I think) that sets the price for you, so that you’re always competitive. Some larger operators actually employ price setting specialists but until we can afford one of them, that seems to work quite well :)
     
  2. diyhelp

    diyhelp Active Member

    Hi @John Wilson

    How many properties do you advertise on AirBnB? How do you find the company in general as I have heard mixed reports over the years.
     
  3. John Wilson

    John Wilson Member

    I only have two on Air at the moment. (The rest being straight buy to let’s) My experience has been pretty good in general. They’ve implemented a few social justice warrior type directives of late but I suppose that’s their prerogative...
     
  4. Longterminvestor

    Longterminvestor Active Member

    Could you expand on the "social justice warrior" comment - sounds intriguing :)
     
  5. John Wilson

    John Wilson Member

    Ha, thanks for asking..

    Hm well, a year or so ago, they brought out this manifesto about discrimination. You had to agree to it or they’d kick you off the platform. That’s all very noble but I thought that the whole idea of private property was that the owner was allowed to decide who stays in it. Indeed it’s important to be able to “discriminate” so that you don’t get your property trashed. Landlords do that every single day.

    Just a week or so ago, they stopped letting you see the profile photo of applicant guests before the booking is confirmed.

    I think this is a step too far because when a new user applies to stay at your space, who has no reviews yet, the photo is one of very few things you had to go on, to make the decision whether to take their booking.

    For example, I once received a booking request from someone who’s profile photo showed someone, clearly drunk with a bottle of whisky to their lips.

    Now I’m not against people having a tipple or two, but to me that’s kind of a red flag for a host and shouldn’t be something that’s kept from us...
     
  6. I agree @John Wilson - at the end of the day this is your property and your investment. Before anyone says, this has nothing to do with racism but boils down to a pure business risk/reward calculation. Even if there is cover to rectify any damage caused to the property, at best your property would not be providing any income for a short while. Sometimes this PC stuff goes too far...
     
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