By Living Room Realty, December 22, 2020
If you’ve got an extra room in your home, or you’re thinking about taking off to live somewhere else for a while, renting your home on Airbnb might be a great option for you. Renting out your space that would otherwise be sitting around empty can be super helpful when it comes to paying the bills – plus, you have the chance to interact with people from all over the world!
Before you get your home listed on Airbnb (or a similar app), there are a few things that you should know. The points that you’re about to read aren’t meant to deter you from renting out your home on Airbnb, we just want to give you the insider tips, so you aren’t surprised when you’re ready to get started.
You’ll be expected to provide basic amenities
There isn’t necessarily a rule that states Airbnb hosts have to provide things like towels, soap, shampoo, and toilet paper, but providing the basics will have a huge impact on your reviews. Guests like to walk into their temporary home with all of the luxuries that they’re used to. If they feel that they’re missing anything and there was no effort made to provide it, they’ll likely detail that fact in the reviews.
You are responsible for your guest’s safety
Airbnb’s website states that hosts are responsible for their guests’ safety. This means that you should make sure your property has a well-stocked first aid kit, fire extinguisher, emergency contact information, a clearly marked fire escape route, and all required sensors (CO2, smoke) are up to date.
You might need a permit to rent out your home
This will vary by location, but most cities will require you to apply for a rental permit in order for you to become a host – even if you’re only planning on hosting for a few days. In Portland, OR, the permit is called an Accessory Short-Term Rental Permit and is only valid for up to 30-days. If you have a home with 6 or more guest rooms in Portland, OR, you will have to consult the Development Services Center to discuss the zoning rules.
Rental income has to be reported
Even though you aren’t technically a landlord when you rent with Airbnb, you are still making an income on that rental property, and it must be reported. Airbnb may issue hosts a 1099-K form that they can use to report their rental income, but it can also be reported on a 1040 tax form.
You can deduct rental expenses from your taxes
We’ve already established that getting your home ready to rent on Airbnb isn’t as easy as taking pictures of your home, listing it, and handing over the keys. You have to follow local laws and set up your guests for a wonderful stay by providing them with things that will make them comfortable. Luckily, everything that you purchase for your rental may be deductible on you’re your taxable income at the end of the year. Just make sure you keep track of your spending, and talk with your trusted accountant.
Are you thinking about listing your home for rent with Airbnb? Let’s book a call! We can help you get your home all set up with everything it needs and answer any questions that you might have about the process.
