Finding a great 3 month rental apartment

[Rich One]

For context, in my day-job I work as a housing policy planner in the US, so that definitely influences my feelings. The short version:

I don't think short-term rentals are bad in every context -- I've known people who rented out their guest room as a supplement to their farming income in areas that were rural enough that they probably couldn't support a full hotel. If that's all AirBnB were, I wouldn't mind it as much. But as many cities have seen, the system it creates encourages property owners to only rent full apartments through AirBnB rather than taking on the legal obligations and risks of renting-long term or of operating a hotel. This can create or exacerbate housing scarcity for long-term renters, and potentially push people into unstable housing situations.

Additionally, there's little oversight in the safety of the spaces that are rented through AirBnB. Renting an AirBnB in Medellin once we arrived at a building that was still very much under construction (like, you could have fallen six stories through the middle of the building from the hallway), and I've also stayed at AirBnBs in the US that didn't have basic safety features like second points of egress in case of fire or smoke/carbon monoxide detectors that would be required in long-term rentals or hotels. Others have reported being illegally filmed by their hosts, or having hosts come in to sexually assault them.

I use AirBnB, as there is an unmet need in the market in most places for hotels that have things like kitchen or laundry access for long-term travel. But I hate that AirBnB is often the only option for meeting that need.

Agree with most of your thoughts. Currently in CABA investors from most of the Argentina Provinces are buying mono/two ambientes in CABA to offer in the Airbnb market. Creating an extreme pressure in the rental market for locals in pesos..!

 

[earlyretirement]

For context, in my day-job I work as a housing policy planner in the US, so that definitely influences my feelings. The short version:

I don't think short-term rentals are bad in every context -- I've known people who rented out their guest room as a supplement to their farming income in areas that were rural enough that they probably couldn't support a full hotel. If that's all AirBnB were, I wouldn't mind it as much. But as many cities have seen, the system it creates encourages property owners to only rent full apartments through AirBnB rather than taking on the legal obligations and risks of renting-long term or of operating a hotel. This can create or exacerbate housing scarcity for long-term renters, and potentially push people into unstable housing situations.

Additionally, there's little oversight in the safety of the spaces that are rented through AirBnB. Renting an AirBnB in Medellin once we arrived at a building that was still very much under construction (like, you could have fallen six stories through the middle of the building from the hallway), and I've also stayed at AirBnBs in the US that didn't have basic safety features like second points of egress in case of fire or smoke/carbon monoxide detectors that would be required in long-term rentals or hotels. Others have reported being illegally filmed by their hosts, or having hosts come in to sexually assault them.

I use AirBnB, as there is an unmet need in the market in most places for hotels that have things like kitchen or laundry access for long-term travel. But I hate that AirBnB is often the only option for meeting that need.

Thanks so much for taking the time to leave that detailed answer. If you're a housing policy planner I now understand what your stance is. I totally agree with the parts of your post that talk about safety and oversight. There should be standards in place. But even in hotels there are people dying. Look in Cabo and at a Hyatt guests recently died due to the hotel unplugging the carbon monoxide detectors.

Airbnb needs to set a complete safety standard across the board. They have gotten a little better sending out carbon monoxide detectors but they still don't require smoke detectors in their properties.

I was one of the very first people that rented apartments at scale online. In fact, I provided consulting to the 3 Founders of Airbnb back in 2008 when they were started. They tried to get my hundreds of properties on their site but I kept resisting. I tried to get the short-term apartment industry regulated in Buenos Aires for many years in the beginning. The city always resisted.

I showed them a path where everyone can win (city with taxes, rental guests with safety and owners with rental income). Argentina government really doesn't think things through and then make silly laws that creates problems (like this long-term rental mess now with almost NO rentals). That was caused by the government.

I'm a big proponent for short-term rentals. But I think the fees Airbnb charges now are too high. I believe you will see people coming full circle and trying to create their own brands again and by-passing Airbnb altogether. Especially in Buenos Aires where government is talking about Airbnb's having to pay 21% IVA plus city taxes and they are currently waiving this for foreigners that pay with foreign credit card.

So what you will see is people like me that will just put up 50+ unit buildings and brand it as a "hotel" and come up with a new brand but it will really be apartments.

 

[RinoG]

I use AirBnB, as there is an unmet need in the market in most places for hotels that have things like kitchen or laundry access for long-term travel. But I hate that AirBnB is often the only option for meeting that need.

We have purchased a property for STR in Palermo Hollywood (it will be on the market in November) but after months of research on Airbnb, I am very reluctant in advertising my property on that platform. AirBnB cares about their profits, and they do not protect hosts from false claims that lead to full reimbursement for week-long stays. Obviously, there are more guests than host in this world, so AirBnB choose to lean toward the guests. When they reimburse a guest, they withdraw their fee, but the hosts still has to pay for the utilities and laundry and cleaning of that stay (not to mention the loss of income).

US-based hosts are going through heaps of hurdles to try to stay afloat - they have regular pest controls to be able to challenge claims of bedbugs, they install external cameras to prove if a guest sneaked in pets or extra guests or if they steal or if they act inappropriately in the backyard (yes, it happens!), they labels their own pillows as they get stolen and replaced for cheap ones by guests etc
It may be worth the hassle if the technology is cheap and the nightly rate is high, but I don't see this feasible in Buenos Aires.

I'd much rather pay a local realtor's fee to be sure to get paid than try my luck on Airbnb. I think l am going to try VRBO first, since I can't agree with my husband on direct rentals (we have one STR next door and the kind of guests is a hit or miss. Lots of mentally ill people who scream all day and do parties until 2 AM or slam doors at all hours - it costs $60 a night so it is not cheap).

 

[earlyretirement]

RinoG,.

Don't worry at all. Airbnb works AMAZING!! You just have to structure everything right. What research are you referring to? I've been renting on Airbnb for over 13 years. And prior to that I managed my own properties and many others for clients. We almost never had any issues. Airbnb is really great with owners and on the very few times I had damage, Airbnb paid for it. They even have a $1 Million policy for damage. The key is to become a Super Host or have a Super Host manage your property. If so, they take good care of you. You have to document everything and have on your website that NO parties are allowed. Collect ID's ahead of the stay and put on your listing you require that. Check reviews of the guests that will stay.

I started renting short-term 6 years BEFORE Airbnb existed and I even provided paid consulting to the 3 Founders of Airbnb for a few months when they were starting, I know the business well. You have nothing to worry about if you set it up right from the beginning.

You're making a mistake if you don't use Airbnb. They are VERY good. Booking.com sucks. VRBO sucks. There are paid consultants that charge by the hour that can help you. I should know! I'm one of them. Ha, ha. For a $200 US 90 minute consultation they can help you set up and tell you all the advice you need. There are many out there so just look online. But if you are interested, send me a PM and I can send you my link to schedule a consultation. I'm always happy to share the knowledge and empower people to make lots of money with their real estate.

These horror stories you are hearing are from people that don't have any experience setting up a STR or working with Airbnb. If you follow a formula, you can pretty much guarantee you will make great income in Buenos Aires.

Take a look at this screenshot of September and October 2023. This is for an actual Airbnb 1 bedroom Palermo Hollywood apartment that I personally own. Those prices are in US dollars! It's literally thousands upon thousands of dollars I'm making from Airbnb. It's not honestly rocking science. I've been doing that for the past 20+ years in Buenos Aires.

* FYI that $19.40 you see for the weekly stay is a free stay we let a friend use but we make them book it on Airbnb and they have to pay the maid. So we give the maid the $20 US fee of about 15,000 pesos to clean it the one time.

 

[RinoG]

I have read a few books on the topic and joined a couple of FB groups for hosts (mostly US-based, but one for "anfitriones" in Buenos Aires).
I have watched several YouTube channels by "Airbnb Gurus" such as Sean Rakidzich, Robuilt, Lydia Patel.
Several hosts report that they have "disappeared" from Airbnb, not to mention listings being suspended for weeks while Airbnb "investigates" a claim etc.

 

[FrankPintor]

I had my first experience as an Airbnb host a few months back, and I'd say you really have to have everything under control before you can do this. The apartment I rented out is in Venezuela, so as a Murphy's Law scenario it was really just perfect

First of all, the guests... whether intentional or not, they will do everything possible to screw you up. Reserve, and ask if they can arrive a few days early. Or late. Can they extend a few days after the rental and not pay via the app. In just the first two rentals I got all of that.

They throw your preparation and cleaning plans into disarray, and then complain when the apartment isn't perfectly clean. Never mind partying, they ignore restrictions on smoking. If they want to stay a few extra days, after agreeing, they haggle about the amount... "I couldn't go to the bank today, this is what I have".

And then the rest of the shit you have to deal with. OK, my apartment is in Venezuela and special factors apply, power cuts, water cuts, power cuts (or surges) that take out the water pump in the building as well as one of my aircon modules Don't say it won't happen here ;-) You have to have absolute control of your environment because the bloody shit "guests" will complain about anything to get a discount and you risk being delisted or blacklisted by Airbnb.

My listing is "sleeping" for now.

 

[earlyretirement]

I have read a few books on the topic and joined a couple of FB groups for hosts (mostly US-based, but one for "anfitriones" in Buenos Aires).
I have watched several YouTube channels by "Airbnb Gurus" such as Sean Rakidzich, Robuilt, Lydia Patel.
Several hosts report that they have "disappeared" from Airbnb, not to mention listings being suspended for weeks while Airbnb "investigates" a claim etc.

If you set it up right you don't need to put in claims. I literally have purchased hundreds of properties and all on Airbnb at one time or another. You set up the frame work to set it up properly including welcome guides, listing information, inventory, rules/regulations, communication, collecting ID's, etc.

NO class online can prepare you for Buenos Aires. You have to understand. In 20 years renting out properties I only had to subtract damage deposit a few dozens of times on hundreds of properties. And the times I did, the people accidentally damaged and gladly paid it.


One time in Mexico on one of my Airbnb properties, someone used a fake ID and checked in or stolen credit card. Airbnb told them to leave after I already had my property manager check them in. We kicked them out and they damaged the elevator with a knife. I submitted the claim with Airbnb (they have $1 Million coverage) and they paid for the repair of the elevator door (which was expensive as it was metal).

You just have to know how it all operates.

 

[earlyretirement]

I had my first experience as an Airbnb host a few months back, and I'd say you really have to have everything under control before you can do this. The apartment I rented out is in Venezuela, so as a Murphy's Law scenario it was really just perfect

First of all, the guests... whether intentional or not, they will do everything possible to screw you up. Reserve, and ask if they can arrive a few days early. Or late. Can they extend a few days after the rental and not pay via the app. In just the first two rentals I got all of that.

They throw your preparation and cleaning plans into disarray, and then complain when the apartment isn't perfectly clean. Never mind partying, they ignore restrictions on smoking. If they want to stay a few extra days, after agreeing, they haggle about the amount... "I couldn't go to the bank today, this is what I have".

And then the rest of the shit you have to deal with. OK, my apartment is in Venezuela and special factors apply, power cuts, water cuts, power cuts (or surges) that take out the water pump in the building as well as one of my aircon modules Don't say it won't happen here ;-) You have to have absolute control of your environment because the bloody shit "guests" will complain about anything to get a discount and you risk being delisted or blacklisted by Airbnb.

My listing is "sleeping" for now.

You have to set up the expectation from the very start when they read your listing. Manage their expectation and let them know you won't tolerate anyone disrespecting your property. I always go higher end and charge more vs. lower end. I don't want to attract trashy people. Fortunately I mostly rent higher end. I spend probably 100% more than the typical Airbnb but I can charge more. I disagree with you that people will intentionally screw you up. You have to look at guest reviews too. If they have bad reviews, you ask them after the book that you won't have issues with them.

You can only take bookings from people with reviews or an existing profile. Airbnb is powerful. You list in your listing you can evict them with no refund if they have parties. Honestly, in many years renting I've very seldom had issues.


I know this market very well. I personally make six figures (yes $xxx,xxx US dollars) on just my 5 Airbnb listings. I'm not saying this to brag. I'm just telling you that you can make a lot of money on Airbnbs. And I don't have that many now. I sold off most of them but gearing up now to start buying again in Buenos Aires now that properties are cheap. I just bought 2 in the past 2 weeks. At one time I personally owned 20 Airbnb units. Most of them in Buenos Aires but sold at the right time.

The 2 new units I just purchased will be finished next year around August 2024. They are a "pozo" construction with the building almost done. I purchased with a developer I have used for the past 20 years. I've purchased over 50 units with them over the past 20 years. Great partner.

Also, I'm getting approached by developers to build my own building. So I may do a 50+ unit apartment building tower and turn it into an apartment/ hotel. It goes without saying ALL my investors will be USA/Canadians/UK/Asian/Australian and all my clients renting are non-locals. (That's a winning formula not dealing with the pain in the ass locals. Each unit will be deeded to an individual investor so people can exit and sell whenever they want. Very easy). That will give me the ability to waive the 21% IVA tax for foreigners structuring the rentals as a "hotel". It will be an entire unit of Airbnb type properties. I'll just brand it myself and hopefully avoid using Airbnb eventually as they charge 10% fees to owners. I'm pretty good at marketing and several of my companies have been acquired by large public companies.

This is a great time to buy real estate in Buenos Aires. Especially new construction. I did the same thing after the last financial crash. Did well...... People are crazy not to buy real estate right now at the bottom. Every one thinks things will be bad forever. They aren't. What goes down eventually goes up. Same thing the other way.

The BEST thing a new property owner can do ASAP is find a SuperHost to list your property. They can make you a "Co Host" but that way Airbnb doesn't F*ck with you. You have an established track record. This is the single best free advice I can give you. Seek out a Super Host in Buenos Aires that has been around a while and work out a deal with them. If you want to manage it yourself you can but this way you get people only looking for "super host" stays.

Lots of these self help gurus out there selling stuff have NEVER worked outside of USA. It's an entirely different ball game in Latin America or Buenos Aires vs. USA. Like night and day.

 

[RinoG]

Lots of these self help gurus out there selling stuff have NEVER worked outside of USA. It's an entirely different ball game in Latin America or Buenos Aires vs. USA. Like night and day.

I wholeheartedly agree. I think Argentina has its own challenges that are hard to grasp on paper. You have to have lived here to grasp the extent of them. Thanks, @earlyretirement for sharing your wisdom on the forum.

 

[earlyretirement]

I wholeheartedly agree. I think Argentina has its own challenges that are hard to grasp on paper. You have to have lived here to grasp the extent of them. Thanks, @earlyretirement for sharing your wisdom on the forum.

You are certainly welcome! I've been posting on this forum for almost 13 YEARS (and a lurker for 15 years). . Always to give. I do "take" as well to learn valuable information. I've learned many things in this forum from many local experts. People like bajo_cero I've disagreed with his political views over the years. But that's ok! See I think people SHOULD have different opinions on things. The world would be a very boring place if we all thought the same things. No one is right or wrong. I believe as long as you lay out an intelligent argument defending why you believe what you do, the world will be a great place. That's what this forum is to me.

People ask me why I "waste" so much time on this forum. Even my own therapist asked me the other day why I have spent over a decade giving information in BA Expats. (Apparently she reads this board).

You know what I told her? I like to share information. I always believe you can never stop learning. There is always a "learning" in life. There is always tremendous value in shared information that is real-time happening in the moment. I know the VAST # of people out there are various forums are lurkers and they only TAKE and don't share. But I believe if everyone could also GIVE just one little piece of information or engage or ask questions, everyone will benefit. I'd encourage all that "take" to also give and participate in this forum and others.

NO ONE can understand Argentina unless they have lived here. LOTS of Monday morning quarterbacks or economists that say how Argentina should be. You know what???? Many have NEVER been been to Argentina. Not once! To give an opinion on Argentina, you have to know and love and lived here. I have and so have many on this forum.

What binds us together is our true love for Argentina. That's what BA Expats is to me.

I'm always happy to share any knowledge that I have. I don't claim to be an expert on many things. But Airbnb's is probably one of the things I know better than anyone in the world. As I mentioned, I provided help to the 3 Founders of Airbnb when they were coming out of College and needed advice how to make Airbnb. I had 4 meetings with them and they actually used a bunch of advice I gave them.

On Airbnb's I can tell you that you CAN make money in Buenos Aires. Lots of money. BUT you have to set it up properly. You have to think everything through. You must have a great property manager. You must anticipate everything. You must have a detailed welcome guide explaining everything so it eliminates questions. You must have an electronic smart lock so you can monitor the comings/goings and also so the property management company can't CHEAT you and say it wasn't rented when you see entries.

I've made 7 figures (Yes, over $1 million US dollars) in Airbnb rentals over the past 20 years on only my own personal properties in Buenos. Aires. That's just a fact. The ROI can be insane if you set it up right. But you MUST know what to do.