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.
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.
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.
- 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.