For those that are looking for a way to make extra money, one great option today would be to convert a room or entire home into an Airbnb. This can provide you with excess cash flow that could be used for a variety of purposes. When you are looking to convert a home into an Airbnb, there are several tips that should be followed.
Check Regulations and Compliance
Before listing your home or doing anything else, the first thing you will need to do is to make sure that you are in compliance if you do list your home as an Airbnb. Most home associations, towns, and other jurisdictions will have a stance on whether these are acceptable.
Make Necessary Repairs
Another tip to follow would be to make necessary repairs to the property. The last thing that you will want is for your renters to have to deal with a maintenance issue. Hiring a plumber who can handle any water heater repair, electrician, and handyman to complete an inspection or make necessary repairs will be a great investment for your new rental property.
When you are looking to host an Airbnb, you will also need to have the right insurance in place. Your standard home or condo insurance policy will not provide you with the right level of coverage. You will want to check with your insurance provider and have the right coverage added to your policy.
The most important tip to get your AirBNB business started is to market the property the right way. This will include creating an engaging property description, taking photos that make your property stand out from the competition, and knowing what a fair rental rate is. This is especially important when you are new to this and do not yet have strong and consistent feedback from past customers.
Now that your home is a business, you will need to keep as many records as possible for tax purposes. While all of the rental income you receive will be considered taxable income, any expenses you incur can offset it. This can include the prorated amount of your interested and property taxes, your maintenance and marketing costs, and other expenses associated with managing the property going forward.
Most importantly, to be a good Airbnb owner, you will need to request feedback. When you are new to this, you should look to always improve by requesting honest feedback and looking for ways to improve the service you provide.