AirBnB’ing Basement Apartment

So the women down the block from me has renovated her standard 7’ high basement, and has it rented for 300+ days a year at aprox $100 night.

That’s $30K income generated from her basement!

Her 1,000 ft basement has been fitted out nicely as a separate “apartment” and sleeps 6. She’ gets many European couples with children (sometimes two couples at a time) looking to save on hotel charges for extended stays in Brooklyn Manhattan.

Now, I don’t have a problem with what she does, as perhaps 50% of the basements on my block in Brooklyn have tenants of some sort or another.

I’m just wondering what the pitfalls may be, or other comments….?

Thnx.

jrs84o

in General Discussion 2 years and 10 months ago

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peaceout | 2 years and 9 months ago

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One thing Airbnb hosts should be aware of, the Airbnb homeowners insurance covers 1 mill offered to hosts is secondary insurance, which means your homeowners need to cover short-term rentals, which many homeowners do not cover. If your homeowners does not cover short-term rentals, the Airbnb will not cover you as the secondary.

dthmpsn712 | 2 years and 10 months ago

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Airbnb host here. There are no more mandatory buffer days for COVID turnover cleaning since health guidelines in NYC have gone back to near-normal. Still, most people can’t or don’t want to do same-day turnovers as it’s a hassle to fit a 3+ hour clean into a 4-hour window between check-out and check-in time.

In our experience, we have to figure in at least one buffer day between stays and add quite a few random days of downtime when guests’ requested trip dates don’t fit onto your calendar like a perfect game of Tetris. Likely less than 300 days/year rented out.

There is a lot of work/communication going into hosting, and substantial costs upfront while setting up an A+++ space for short-term stays. Not the easiest side hustle.

chemosphere | 2 years and 10 months ago

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yes, although there is liability if it’s offered as a traditional rental apt too – the fact that it’s airbnb’d doesn’t add any additional liability. Airbnb has their own type of insurance but everyone seems to think that it is useless.

Rick | 2 years and 10 months ago

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If it is not a legal apartment, the pitfall is liability . However, I see it all the time. Lots of people are fine with taking the risk . But imagine if something happened …… a landlord would be totally screwed in the event of fire, death or injury .

Putnamdenizen | 2 years and 10 months ago

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2 night covid cleaning? Maybe that is a USA thing – certainly not true elsewhere in the world.

resident2 | 2 years and 10 months ago

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Even if your neighbor is renting a perfectly legal separate apartment out on AirBnB, she is not renting it at $100 per night 300+ nights a year. AirBnB has a minimum 2 night buffer between guests for “Covid Cleaning”. Plus the costs of maintaining & replacing, sheets, pots, pans, crockery etc… many are finding AirBnB is more work than they were expecting!

irfan | 2 years and 10 months ago

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On the Airbnb point, as soon as you add a door that locks and separates garden level from rest of building, it’s illegal to rent for less than 30 days, setting aside DOB CO issues. You basically have to rent out use of an owner occupied residence while the owners are there to be a legal Airbnb. There are some caveats but that’s the quick summary from my quick read. I’m not an expert in this though.

irfan | 2 years and 10 months ago

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On the Airbnb point, as soon as you add a door that locks and separates garden level from rest of building, it’s illegal to rent for less than 30 days, setting aside DOB CO issues. You basically have to rent out use of an owner occupied residence while the owners are there to be a legal Airbnb. There are some caveats but that’s the quick summary from my quick read. I’m not an expert in this though.

jrs84o | 2 years and 10 months ago

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Ok.. Im beginning to see the issue here.. @chemosphere…. If the basement (not cellar) is habitable space attached to the parlor level — It MAY be a legal AirBnB and NOT a separate apartment which may or may not be legal according to CoO and zoning…

jrs84o | 2 years and 10 months ago

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I should also mention… Access to the basement rental is through/under stoop… Where she has installed a fancy reprogrammable card-key access door locking mechanism.

To the best of my knowledge, she’s not even there most of the time. I think she even has a service come and do inventory change bedding towels etc. because at times i see families with baggage waiting for the card key delivery from some guy in an unmarked van.

I talked to the local bank manager about this (because he is local property owner) and he says it’s NOT the DOB which would worry him… It’s the INSURANCE co.

jrs84o | 2 years and 10 months ago

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chemospbere- Im certain it has been turned into a separate unit with bath kitchen— All the pix are on AirBnB.

I think there are actually existing stairs connecting basement and parlor levels, they are just non accessible (behind a locked hallway) from the basement.

Any further comments?

thnx.

jrs84o | 2 years and 10 months ago

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I’m just say’in I can go on to airbnb and see her rental calendar… It’s booked into the future 6 months, and I know she’s had it rented 6 months going back to April @$100/day. No joke.

But you are conflating two posts together.

Yes I want to convert the property back into a two family (other post) but I’m thinking. I turn the basement into the rental, and keep the top two floors for myself… That’s basically the way it is set up now.. duplex over unrenovated basement,

chemosphere | 2 years and 10 months ago

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could be legal if it’s a basement, not a cellar, in a 2 fam (or 1 family house). Would have to conform to zoning. Is it a separate apartment, or part of her upstairs 1st floor apartment?

helen40

in General Discussion 2 years and 10 months ago

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So your plan is to renovate with permits the one-family you renovated into a two-family without permits back into one-family and at the same time also considering converting the basement into a short-term rental making it a two-family? I think the DoB will be very interested in this project. And If the basement is actually a basement and not a cellar, it can be rented. But there are rules wrt use and occupancy. There are plenty of architects with experience in this kind of work who can file to have the unpermitted work filed and inspected and advice how to create a legal one or two family. But it wont be cheap.

BTW, I call BS on 300 days of occupancy and $30K in gross income for the year.

jrs84o | 2 years and 10 months ago

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Let me write again…

“… I don’t have a problem with what she does … “

I’m most interested in comments on how the DOB might view the situation.

Lurker | 2 years and 10 months ago

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Pitfalls for her or you? It seems like you’re looking to find a problem but there isn’t actually one? In our hood all the nearby hotels are used as homeless shelters so Airbnbs are the only option for people to visit families, so there’s a trade-off between demand for housing and a generally affordable option for both tourists and locals.