If you like the idea of occasionally earning some extra income from your home, Airbnb might be for you. Here are a few things to consider before renting out your home.
Preparation and time
You will need to take photos, provide descriptions, answer inquiries, and have your potential renters vetted. Airbnb has an automatic booking option, which will handle this for you. However, it’s always good to know a little bit more about who is coming to stay in your home. In addition, you will either need to thoroughly clean or hire a cleaning service after guests leave to prepare for your next visitors.
Income and insurance
If you rent out your home fewer than 14 nights a year, then the IRS says you don’t need to include the income on your taxes. Otherwise, the rental income must be reported. Be sure to check with your insurance agent to find out what is covered under your homeowner’s policy. Airbnb provides some supplemental insurance options, as well.