Using AirBNB for extra income/rentals

[sboarding]

Hey guys - I am doing my homework on the site and reading through everything. I've read through most of the threads on real estate and have found people asking about AirBNB. I have been using it and similar websites for a few years to do short term rentals. A few quick things about it:

- Airbnb charges 3% per confirmed booking

- Airbnb will collect a W-9 and report all earnings (but not withhold) keep that in mind at tax time

- Check your zoning, these are considered short term rentals - or rentals to "transient" residents. In FL, you need a business license to do this whereas long term rentals a business license is not needed and you're not subject to the same regulations (you're essentially making your property a hotel)

- You can list your property for longer term rentals, making them month-to-month tenants, but make sure you know squatting laws - I've seen this recently pop up

- If someone books your unit month-to-month, Airbnb will pay you monthly, you do not get a lump sum

-The rental agreement is between you and the tenant, Airbnb is a medium only

- Guests must only pay through Airbnb to cover you in their damage liability guarantee

- Check your insurance, make sure you these types of rentals are covered (airbnb does have a 1,000,000 damage guarantee, not sure how hard it is to file a claim)

- These are not "set it and forget it" tenants. Most are not from the US and need some hand holding - remember the website is review based, the better "host" the better reviews, more bookings, etc

- Most HOA's don't allow it

- Consider where you're located, vacation spots/large cities are where the service is useful. Some places have seasons where you'll get an influx for a few months (Utah ski season, Florida in winter) keep that in mind when you get 100 inquiries for a few months, then go 6 months with none

I think that's most of the basics. Most of the people I know that use it rent out rooms in their personal residence. I do this and use it to fill empty units until I find long term renters. I have been on both sides of Airbnb, renting and renting out. If you guys have questions, I'll do my best to answer based on my experience and the experience of several others I know who use the service.

 

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