Renting out your surplus room or property through the social marketplace known as Airbnb has added another dimension to using the spare space in your residence. The tremendously large selection of accommodations available in 190 countries, through the online marketplace offer potential tenants almost unlimited choices. To connect the potential guests with hosts, Airbnb charges a small fee from both parties. So, should you Airbnb your home or lease it?
Benefits of Using Airbnb
The website was developed to provide a platform for the budget conscious traveller and those with surplus space in their homes. It provided a forum where two parties in need could work out the logistics of their deal and in the end both would gain something out of it. Other benefits include:
- Travellers’ have a large database to choose from, while hosts get to advertise to a large client base.
- Airbnb is the mediator that guarantees payment and bookings.
- A large selection of payment methods and currencies make it convenient.
- Allows the host to make money, while the guest saves considerable of money when compared to costs of a hotel or motel.
- Host gets to interact with people from different cultures and countries, while guests avoid the typical tourist mentality hotels.
- Provides personalized service and true experience of the native culture.
Drawbacks of Using Airbnb
In the end, the question should you Airbnb your home or lease it can only be answered by you. However, for all the benefits associated with Airbnb, there are some negative aspects that need to be kept in mind.
- The biggest concern for the host is that the guest may damage their property. While a vast majority of the transactions since the inception of Airbnb have been without incident, there is always the risk of that one odd case.
- Of greatest concern to the guest is that the reality of booked location does not match the description provided, or the host is negligent and indifferent to the guests’ requirements.
Before renting out their homes, the hosts also need to be clear about what the law allows and does not allow in their locality. Some areas do not allow the renting of rooms in this manner. For instance, New York forbids short duration renting without the host living on the premises. Different states have different laws, and not following them may result in heavy fines.
Additionally there are the tax issues. A number of states require hotel or tourist tax to be paid for holiday rentals. While Airbnb does gather taxpayer information to comply with U.S tax situation, the final responsibility is with the host.
Should You Airbnb Your Home or Lease it?
Whether you choose to Airbnb your home or lease it, there are risks and benefits in both situations. Both scenarios’ are also bound by different laws that protect the host and the guest.
With the new laws coming out restricting Airbnb leasing you should research your local laws regarding Airbnb leasing.
Have you ever utilized Airbnb, as a tenant or host? Any amazing or horror stories? Share them below!