I’ve been co-hosting for Airbnb in NJ and the state has recently passed a law taxing Airbnb and short-term rentals. I want to make sure I’m doing everything by the books. I know that Airbnb collect these taxes and send to the state on my behalf but do I need a real estate license or property management license for this type of business?
Real Estate Agent · USA · Member since 2016 · 909 posts · 1k+ votes
7y
Hey Andrey- call your state real estate commission and they can answer this question. The laws vary by state to state on what is considered property management or not. Some states require a license to co-host, and some don't.
Real Estate Broker · Columbus, OH · Member since 2016 · 181 posts · 244 votes
7y
I am not sure about NJ laws, but in Ohio, yes you would need a real estate Brokers license (not just an agent license).
If you are approving tenants, and collecting rent money for the owner, that is property management. You must have a RE license, and be working under a brokerage that is also licensed to do property management, and that brokerage must have the contract with the owner (not you directly).
These laws are not very heavily enforced, so you will likely get away with it. But if you want to be doing everything by the books, then you definitely need to check with your real estate commission at the state department of commerce.
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
4y
I can say with reasonable certainty that in some states like NC and VA, the co-hosting activities would fall outside of the definition of brokerage. In other words, a co-host does not require a brokerage license as long as the owner and co-host follow to the letter the AirBNB How-to guide: What Co-Hosts can do. I am exploring this in Virginia as well, and by AirBNB definition of the Co-Host, the Co-Host is not operating as a broker per Virginia law.
The big picture: the owner does all the work pre-visit, including interfacing with STR channels for payments. The Co-Host "manages" the majority of the tenant's visit experience by providing pre-visit services like cleaning and providing 'boots-on-the-ground' support including texting with guests, in-person welcome, and resolving concerns. The Co-Host compensation depends largely on bookings and positive tenant experience, but the Co-Host is not directly responsible for bookings (that's the owner's responsibility) and only indirectly responsible for tenant experience.