In the last five years or so, the popularity of the home-share app Airbnb has skyrocketed, many choosing to search for an Airbnb for their vacation instead of a traditional hotel. Airbnbs are a great option for vacationers, because they allow them be in a home environment instead of a hotel, and they are often cheaper and more flexible than hotels as well. Because of their spike in popularity, many homeowners are considering buying a property to convert into an Airbnb or converting part of their own home into one to bring in some extra income, but is it worth the hassle?
Airbnbs can be a particularly good option if you are either not ready to invest in a full-year rental, or you live in an area that does not have a great market for it. But, if you do decide to list your property on Airbnb, it is important to remember that it will not be as steady a source of income as a full-term rental. There are many more ebbs and flows in the demand for Airbnbs, as many times they are only rented for a few days to a week at a time. It is also important to look into the process for listing a property, and to make sure you are complying with all tax ordinances. If you are considering listing your property, it is probably a good idea to consult a lawyer or CPA who can help you understand the tax code and how you should file your income from your rentals.
However, there are upsides to listing a property in Airbnb. It is a great way to earn extra income on a second home that you might already have, or even on your personal home if you are comfortable with renting out a room. Airbnb takes great care of their hosts, with things like cleaning fees and deposits paid for by the customers. It is also a great way to dip your toe in the rental market, if you are not ready financially to commit to buying a full-time rental property. So, before deciding to become a host, make sure you weigh all of your options and do your research, even go as far as to contact Airbnb hosts in your area to ask them about their experience.