Short-Term Rentals

Today, renting a room in your house (or the entire house) via an online service, such as Airbnb, to unknown travelers is becoming quite common. Short-term rentals provide extra income for homeowners and a unique way for visitors to experience a city.

 

If you think you’re up to being a host of a short-term rental, here are three things to keep in mind.

 

  1. Legality

The rise in popularity of Airbnb and other sites hasn’t been without its controversy. There are concerns that short-term rentals don’t have to pass the same certifications and inspections of regular hotels.

Some cities have restrictions against short-term rentals. You may need to register and get a permit or a license – or you may not be able to host at all.

 

  1. Taxes

You may not need to report the money earned from the short-term rental of your home if you meet certain requirements. Forbes and TurboTax provide some information, or you may want to consult with a tax professional.

 

  1. Additional Costs

Renting out your home could mean an extra insurance bill. Check with your insurance agent to learn what your current policy covers regarding short-term renters. They may recommend increasing coverage.

In addition to insurance, you’ll have to pay a percentage of the rental income to the website: Airbnb charges a 3% host service fee.