Airbnb has been around for the past twelve years and has increased in popularity among tourists and travelers. It offers travelers the atmosphere of a home away from home.
Hosting an Airbnb space in Kansas does not necessarily mean you have to buy a brand new house or unit. Before you buy a house from Madrigal Team Gold or other reputable sellers, consider the following factors:
Marketability
You have to know your market and the opportunities (and risks) it can bring you. Is your town or city known to attract tourists regularly? Does it have a constant influx of travelers year in and year out? How does your city’s local tourism fare in promoting the local sights and sounds? Does your area have enough businesses in it that regularly brings in all kinds of transient traders?
It is necessary to ask all these things in light of hosting an Airbnb property. No one goes into business and not consider profitability.For those living in bigger cities, determine if there’s an oversaturation in Airbnb hosts in your area. If there are gaps in your neck of the woods, see if there are ways to fill in these gaps.
Local Rules and Regulations
One very important consideration to renting the property out is legal matters. It is important to know the laws of the land about owning or leasing properties.
A lot has changed over the past twelve years. Some cities now have new rules about how certain properties can or cannot be rented.
Cities like New York now state you have to live in the property. In Austin, Texas, you can no longer rent out a single-family home. It has to be type 2 residential which is four units or more.
There are different laws in different states. Certain cities and towns also have slightly different regulations for real estate properties. Before going to the city hall, you might want to check with your local homeowners’ association or co-op first to see if their rules allow you to host.
Taxes
Find out what your legal obligations will be as far as taxes are concerned. On top of the regular federal taxes you will owe on your Airbnb income, you might be required to pay transient occupancy taxes as well, similar to hotels. You could probably bring your taxable Airbnb income to a minimum by deducting some business expenses like cleaning fees and insurance.
Insurance and Liabilities
There is an Airbnb host guarantee of up to $1 million in insurance coverage for property damage in about 30 countries, including the U.S.However, this is no substitute for homeowner’s insurance, neither does it protect against theft and personal liability. It also does not cover wear and tear to your unit.
The reality is that Airbnb offers hosts plenty of benefits despite some risks. Airbnb is still a lucrative business if you do things right. It can give you up to five times more on your income with the right knowledge and attitude. If you’re up to the challenge, then prepare to reap the rewards.
