Some Costs That Come With Listing Your Home as a Vacation Rental
There is no question that homeowners can make a considerable about of money renting out their home as a vacation rental. However, as industry experts like Brian Ferdinand Liquid know, there are some significant costs as well, and if you haven’t done your homework you can be surprised by some of the following expenses – some of which are mandatory, and others depend on your choices.
Taxes: although the regulations may vary, you are entitled to rent out your home for fewer than 14 days without owing tax on it. More than that, however, and you are required to declare the money you receive as income. In the United States, AirBnB currently sends tax forms to the IRS, and other providers are sure to do the same. However, you may be entitled to receive deductions against this income, especially if it is not your primary home, so be sure to keep every receipt.
Insurance: you might be tempted to take your chances, but this would be a very bad idea indeed. It only takes one accident in your home to create a lifetime of financial misery. Be sure that your existing home insurance covers short-term rentals. Some do, but others might require that you take out a business policy instead, and these can be considerably more expensive that a regular policy.
Platform fees: some are more expensive than others, but all platforms will charge a service fee to list your property, and to facilitate the rental process.
Cleaning fees: if you are only renting your space every once in a while, it may make sense for you to do the cleanup yourself. However, this will involve a top to bottom clean with laundry to do and several beds to make – if you are renting out your space on a regular basis, you will definitely want to hire a professional cleaner. This is especially true if you have a short window between one guest leaving and other arriving.
Property manager: this is a voluntary expense, but as with cleaning it is something that you will probably want if you are renting out your home on a regular basis, particularly if you are not in the same city. A property manager will be available to meet your guests, help them settle in, respond to any problems during their stay, and be sure that a post-visit inspection is done and that cleanup has occurred on schedule.
Supplies: although it is not always required, most popular hosts will be sure to have provided ample supplies for the kitchen and bathroom, including soaps, towels, toilet paper and linens. You may also find that you have higher than normal charges for utilities such as electricity and gas, or data charges if you don’t have unlimited wireless.
Upkeep: even if your guests are gentle on your home, you will surely find that you will have some basic upkeep and maintenance. The simple fact of suitcases going up and down your staircase on a regular basis will probably call for regular touch ups of plaster and paint. Furniture will probably need to be cleaned and potentially replaced more frequently, and carpets and floors will likely need regular attention as well.