Can I airbnb my primary residence fulltime while renting elsewher

Question

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Joe Splitrock · Answer

@Derek Lacy and @David Dachtera made the correct observation, then if you rent your home full-time it is NOT your primary residence. Your rental becomes your primary residence. That can affect your property taxes and significantly affects how you file taxes (not necessarily bad). AirBNB will report the income to the IRS, so make sure you file taxes properly. Talk to an accountant. In a nut shell, your old primary residence becomes a full-time rental property that is used 100% for rental. That means all your expenses for the property become deductible, which is good. Your primary residence becomes the place you are renting, so that is the address you put on your taxes as your primary residence. Good luck @Emily Shirk.

David Dachtera · Answer

@Emily Shirk,

Your use of terminology is a bit confusing. If you rent full time, that is your primary residence. You may own a home you previously lived in as your primary residence. Now, it's just a home you own.

As others have posted, the rules change a bit for non-owner occupied. You need different insurance, at the very least. If there is a lender involved, they probably need disclosure from you that you're no longer occupying the residence.

David J Dachtera

"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."- DJ Benedict

Jeff B. · Answer

Others are doing it is a poor standard to go by.  Check with the City on Short Term Rental policy.

Brandon Hall · Answer

And as I mentioned in your other thread, few people understand the impact of an AirBnB rental, mainly the fact that it will cause profits to be subject to self-employment taxes if your average stay is less than seven days.

Hersh M. · Answer

@Emily Shirk What do the numbers look like? Does it make financial sense in SJ?

Emily Shirk · Answer

@Rafael Floresta when you stage are you allowed to keep the furniture (on a rental basis) for your airbnb or is it strictly for the pictures?

Rafael Floresta · Answer

@sean they do but they dont stage. And staging does pay.

Sean Walton · Answer

Also further to @Rafael Floresta's comment good pictures are key and airbnb used to and probably still will take pictures for you for free in your area

Sean Walton · Answer

Hi Emily,

This is in the legal section so I assume you are asking about legality. I'm not a lawyer so I would recommend consulting with one but some things to check. Do you have an HOA have restrictions on rentals less than 30 days? Do you have nosy complaining neighbors who would report you to authorities. Short term rentals are so new the laws haven't really caught up so there are grey areas they don't prohibit airbnb but may say rentals but be 30 day minimums or you need to be permitted as a hotel and collect hotel tax from your guests. Most people ignore this until it is fully codified.

You will also probably have to switch your homeowner insurance from owner occupant to innkeeper's. I went with CBIZ and it wasn't that much more expensive. Airbnb has coverage some coverage but I don't feel it replaces having your own policy, which your mortgage holder will require as well.

You may want to try staying at friend's houses on weekends or high demand times to try airbnb out. Also having a few reviews before you go into it full bore will help you in the long run

Al Wiliamson wrote a good article about other things to consider. One big one is to make sure it is more profitable than long term tenants when you include all expenses and your time.

https://www.biggerpockets.com/renewsblog/2016/04/1...