Do you have a room or an extra flat? You could be sitting on a gold mine. A lot of people are earning extra cash by listing their place on peer-to-peer rental marketplaces like AirBNB, which is one of the biggest and most popular ones. Some people even stay at a friend’s house a few times a month because they have tenants in their home.
This article delves into the considerations that normally exist with listing a place on AirBNB.
Know the Law
The websites where you can list your place don’t always let you know if you’re complying with local laws. You have to know the rules and regulations and proceed accordingly because, as they say, ignorance of the law is no excuse for not obeying it. People in New York, for example, have had to pay some quite heavy fines after renting their places through peer-to-peer services.
Make a Binder of House Rules
There are always a lot of things to do before you can list your place, but start with making a binder with the house rules, your contact number, local attractions, the Wi-Fi password, and other relevant information. Include emergency numbers because not all guests will be familiar with the country or area where you live.
Buy some extra towels, sheets, and soap. Think about installing cable if you don’t have it. Make sure your online pictures and description are high quality – they’ll sell your place.
Don’t Forget about Uncle Sam
Typically, AirBNB will give you a tax form for the place you’re renting out, and you are responsible for reporting the earnings when you file your tax return. Consider this when balancing your expenses versus potential earnings.
Don’t Stop with AirBNB
Your chances of being seen and booked increase when you list your property on multiple sites. Take the time to read each site’s rules and to understand the insurance coverage and fee structure before listing your property.
Consider the Costs
There will be many start-up costs, but increasing utility bills and ongoing costs for consumables like detergents, soap, and toilet paper will form the bulk. Buy items in bulk to save money and time. You can charge a cleaning fee to offset some of these expenses and to pay for your time spent cleaning before and after your tenants rent your place.
One final consideration we should note involves holiday costs. You could cover the cost of a holiday if you’re renting your space while you’re away. Should a mishap occur – for example, a tenant forgets to give a parking permit back – AirBNB will reimburse the replacement cost.