Are you wondering, should you rent out your home as a vacation rental? Let Georgia Landsource help you out! According to the old saying guests who are staying more than three days at your home are not considered a good thing however it is not true. But what if these guests stay at your place for a long time and you get paid for their stay? It sounds good but is it that simple or easy to rent out your place?
There has never been an easier time in terms of logistics. The peer-to-peer vacation rental platforms Airbnb, VRBO, and others make it easy for homeowners to list and rent their properties. Apps for the companies allow individuals to list their properties with descriptions, photos, and booking options, and those companies receive a percentage of the booking fee.
What kind of revenue can you expect from renting out your home? Airbnb hosts are reported to earn an average of $924 a month. This number can fluctuate between $200 and $10,000 depending on the property, the rate, and how many days are booked. The money is not purely profit. Renting out your home involves costs and considerations, so start with realistic expectations.
An Overview of the Property Types
Unlike renting out a vacation or investment property, renting out your primary residence is a very different experience. You may not want strangers living in your apartment if it’s your primary residence or a dedicated guest unit. Additionally, your loan agreement may include occupancy rules. Make sure you inform your lender before you rent out your property to avoid breaking any rules.
The Business related to Vacations.
Floating the idea that you’re sitting on a goldmine by listing your property on Airbnb, Vrbo, and other vacation rental sites may make you believe that all you must do is watch your cash roll in. However, be sure to thoroughly understand the process before spending your imaginary money.
Know the rules.
There are rules related to vacation rentals set by your rental company, as well as laws imposed by your city or state. In some cases, you may be required to obtain an operating license or pay occupancy taxes (like hotels). In addition, co-ops and homeowners’ associations have their own rules, and your lender may also have restrictions, so be sure to check all of these regulations before opening your doors.
Air conditioning, Wi-Fi, parking facilities, laundry facilities, and other amenities should be available to guests. You should know your competitors and describe your property honestly. Bad reviews come from disappointed guests, and they can cause your business.
Prepare for emergencies.
Your guests will expect you to fix a leaky faucet or the malfunctioning air conditioner as soon as possible. If you have an emergency, you should be prepared to call in a plumber, electrician, appliance technician, or handyman as soon as possible.
Do the math.
If you rent out your home, any income you earn will likely be taxable, and the service you use will charge you host fees. Towels, soap, and toilet paper are all essentials that must be kept in constant supply. Furthermore, if guests leave the lights on or crank the air conditioner, your utility bill will likely go up. Keeping your home clean and sanitized may cost more whether you do it yourself or hire a service.
Ensure that you’re covered.
Home insurance might not cover repairs if your guests damage your home, unfortunately. If you plan on hosting your first guest on Airbnb or VRBO, make sure you understand what the insurance covers and what isn’t. A special policy may be required.
Getting Things Started
Decluttering your home and making cosmetic changes will prepare your home to become a competitive host if you decide to become one. Examine your house with a critical eye, as if you were a renter, and determine if bathroom fixtures, walls, or carpets need to be changed.
The colors you choose for your home’s interior should be neutral, and you should design your home according to the location and style of the building. A Georgia barn renovation doesn’t require a beach theme like a cottage on the water does. Call Ridge Valley Exteriors for a free roof inspection.
Guests are considerate about the comfort, and you may want to consider having a good mattress and other nothing to maintain good reviews by guests and to attract more renters. Your valuables and personal information need to be protected. Documents with sensitive information, such as photos and heirlooms, need to be safely stored, either at home or elsewhere. Getting high-quality photos for your listing will help convey the beauty of your home. The shots you need may require the services of a photographer.