Written by: Emily Joswiak • August 21, 2025• Finance

What To Know Before Investing in Older Buildings

Are you considering an older building for your Airbnb? Learn about costs, regulations, and strategies to maximize return on investments from these properties.

A large house with a wrap-around porch on the first floor. There are trees surrounding it and a white front gate.

Thinking about adding a charming historic property or vintage building to your Airbnb portfolio? You’re not alone! Older buildings often come with incredible character, unique architectural details, and prime locations that guests love. But you should know what you’re getting into before you invest in older buildings, including the parts that can make or break your investment.

The Hidden Costs of Character

Older buildings are undeniably charming, but that charm often comes with a price tag you might not see coming. Unlike newer constructions, these properties can surprise you with unexpected expenses that eat into your ROI.

Extensive Updates

Buildings with that old charm also feature old systems that can make it hard to update them. Electrical and plumbing systems in old buildings need extensive updates to meet modern safety standards. These aren’t just cosmetic fixes—they’re essential upgrades that can cost thousands of dollars.

HVAC systems in vintage properties often struggle to effectively heat or cool spaces designed decades ago. With an insufficient HVAC unit, a replacement becomes necessary, but there are challenges for new HVAC installations in historic buildings.

Navigating Permits and Regulations

It’s hard to navigate the permits and regulations associated with old homes. Some spaces have historic designations that might limit what changes you can make to the property’s exterior or significant interior features. While this protects the building’s character, it can also restrict your ability to optimize the space for guests.

Zoning laws and building codes can also affect changes and improvements that you want to make. Look at the zoning laws specifically to ensure that short-term rentals are allowed in that area before purchasing an older building. Work with a local attorney or real estate professional who understands your area’s regulations before making an offer!

Maximizing Guest Appeal Despite Age

Guests often pay premium rates for unique, historic properties! There are ways you can leverage an older building’s character while addressing potential concerns for guests. The best way to begin this process is by highlighting the story behind the property. Guests love staying somewhere with history and personality, so highlight that in your listing.

Quickly address concerns before they even come up. If the building has thin walls, provide white noise machines. If parking is limited due to the location, clearly communicate transportation options and nearby attractions within walking distance.

Smart Financial Planning

Successful investment in older buildings requires careful financial planning that accounts for both known and unknown expenses. They often have more maintenance needs than newer homes, so budget approximately 20 percent more for maintenance than you might for newer properties.

Consider other implications of owning the property, such as insurance premiums that can put your ROI at risk. Don’t try to renovate everything at once. Instead, plan for gradual improvements over time.

Making the Right Decision for You

Investing in older buildings can be incredibly rewarding when you go in with the proper knowledge about the expectations and preparation for the property. These properties often offer unmatched character, prime locations, and the potential for strong guest loyalty.

With the right approach, that vintage property could become the crown jewel of your Airbnb portfolio! Remember, every successful host started with careful planning and realistic expectations of their property. You’ve got this!

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