Using Airbnb to rent out your home can be very profitable. Especially if you have multiple listings. But before you decide to invest in becoming an airbnb host, here are a few things to consider:
1. Airbnb is Not Passive Income
There is a lot of work involved when managing a listing ion Airbnb. Constant booking inquiries and messaging with guests, key exchanges, restocking supplies and maintaining an updated calendar can be very time-consuming.
2.Endless Laundry & Cleaning
Remember, your space needs to be cleaned for your guests in between stays. This is true for all linens and towels used as well. It’s best to have multiple sets linens and to minimize the frequency of laundry.
All income is taxable, and with Airbnb it is no different. You will get a 1099 form at the end of the year. Plan in advance and save up; you might have to pay taxes on your earnings.
4. Landlord Relations
If you do not own your property and are considering becoming an Airbnb host, you need to think about how your landlord will handle the news. We strongly recommend that you tell your landlord your intentions and persuade him to allow subletting on your lease. Usually subletting is not allowed in many rental leases. By not telling your landlord, you run the risk of potentially being evicted.
5. Dealing with Tourists
Evaluate how willing you are to share your space and interact constantly with travelers. It can be fun at first but can quickly get old.
6. The Neighbors
Renting out your space to travelers implies more foot traffic and noise. Whether you tell your neighbors or not, they will figure out you’re using Airbnb to rent your home. In most cases the reaction is not the best. They may feel you are endangering them by bringing strangers into the community.
7. Legal Issues
This varies from place to place but in a few places like New York City, short term rentals of full homes is illegal. If caught, you could be fined or prosecuted. These cases are very rare but they do happen. Check your local laws to see the legality of renting your home.
Insider Tip: Get help with your listing to free up your time. Depending on you r hosting style consider outsourcing cleaning, key exchanges, and/or laundry.