Practical Considerations

This post originally ran in August 2018. The COVID-19 pandemic is a wakeup call to consider unexpected events when thinking about whether you can really make money using your home as a short-term rental.

At least 75 U.S. hosts on the Internet home-sharing service [Airbnb] are grossing more than $1 million in rental income a year. That’s $2,739 a day or $19,230 a week. Forbes.com, “The 75 People Who Make $1M A Year From Airbnb.”

$1 million a year?  That’s a lot of money! Makes you wonder, “Could I do that, too?”

Maybe….but don’t count on it. Those hosts either have very special homes that are rented out all year long, or they are “multi-property” hosts who rent out several homes at a time.

Chances are that few of us who use our homes as short-term rentals will hit the $1 million mark, or even come close.

Still, being a short-term rental host must pay off in some way; otherwise, why do so many people list their homes on Airbnb, VRBO, and other short-term rental sites?

The question is, would using your home as a short-term rental be worthwhile for you? Before you quit your day job, put the issue in perspective by considering these 5 questions.

 1. Are you ready to run a business?

That’s right.  Unless you have guests for only 14 or fewer days a year, using your home or second home as a short-term rental means you’ll be running a business. [Read more…] about Make Money Using Your Home as a Short-Term Rental?

We recently discussed short-term rental taxes with expert Rob Stephens, co-founder and general manager of Avalara MyLodgeTax.  Here’s what he told us.

Do all states and local governments charge tax on short-term rentals?

Nearly all locations in the U.S. collect lodging tax on short-term rentals.  There are a few exceptions, like Massachusetts, where single-family homes or very small operators are excluded from any lodging tax liability, but that is unusual. [Read more…] about An Expert Discusses Short-Term Rental Taxes

Thanks to Madison Blancaflor  and BankRate.com for this guest post.

The number of short-term rentals hosted by people 60 years and older has grown by nearly 1,100 percent over the past year. In fact, the United States tops Airbnb’s list of countries with the most hosts in that age group.

Retiring (and aging as a whole) is sometimes associated with loneliness and withdrawal from social activities, but statistics prove that is far from the truth. Retirees actually comprise more than 50% of senior hosts on Airbnb. [Read more…] about A Retiree’s Guide to Hosting Short-Term Rentals

Guest Post by Dawn Royski of ShareTraveler.com

The point of a travel insurance policy to protect yourself in case you have to cancel a trip. These policies reimburse you for airline tickets, prepaid lodging, and other non-refundable purchases (depending on the specific coverage), and many also provide emergency medical evacuation.

The tricky question is whether the risk is high enough that it’s worth spending the money to buy travel insurance for a home exchange. [Read more…] about Should You Buy Travel Insurance for a Home Exchange?

At the end of last year, VRBO sent a warning that we needed to register our San Francisco condo as a short-term rental. We knew our condo didn’t meet the city’s definition of a “short-term rental” because we have a minimum stay of 30 days, so I ignored the message.  Then I got one that said VRBO had made our listing inactive.  Ah, I thought.  That’s why we haven’t been getting inquiries.

It took several emails, a phone call, and some paperwork before VRBO finally reinstated the listing.  Now we’re finally hearing from potential guests again.

San Francisco, where Airbnb was born, is no outlier.  Cities, counties, towns, and even states all across the country (and elsewhere in the world) now tax, regulate, limit, or even ban short-term rentals. In some places, hosts who fail to comply risk racking up huge fines, along with losing their right to rent out their home to travelers.

But doing the right thing can be tricky. The rules, laws, and regulations vary from place to place.  Worse, they’re changing rapidly as local and state governments confront what are often very controversial issues. To be safe, learn what you need to do to make sure your short-term rental is in compliance. [Read more…] about Short-Term Rental Compliance: What You Need to Know