STR Compliance Companies Popping Up

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STR Compliance Companies Popping Up

Danielle Witte
Investor · Denver, CO · Member since 2016 · 6 posts · 0 votes

Yesterday I received my first email from Host Compliance about paying Transient Taxes for one of my rental properties. A quick trip to their website explained how they've built a business around helping counties with enforcement and tax collection. Eesh. Has anyone clicked their link to "submit a revenue report"? Obviously I'd love to check my compliance without flagging myself. This also concerns me about another property that I own right outside of a jurisdiction...joy.

"Airbnb....and 100's of other vaca rental websites have turned vaca rentals into a booming underground economy at the expense of long-term tenants...Our comprehensive suite of CCPA/GDRP/PIPEDA compliant and battle tested solutions give local governments the tools..."

Get ready.

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Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
6y

Ok let’s just let it be known

If you are renting a property short term

(Airbnb/VRBO)

YOU HAVE TO PAY STATE (sales) AND LOCAL (occupancy) TAXES EVERY MONTH!

Yes... you can charge these taxes to the guest but they will pass through your bank account (depending on your state)

Mylodgetax.com is the solution.

There is a TAXES and FEES section on to VRBO Rates Page in which you can put in literally any additional fee you want in the form of a percentage. This would be a good spot to put in your tax amount.

Airbnb: Booking Settings/Extra Fees/Management Fee % 
(Not everyone has this on Airbnb -it is in beta and will be desktop only) 

If you are not paying state and local taxes MONTHLY -you are breaking the law. 

Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
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  • Julie McCoy
    Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    @Danielle Witte I use Avalara MyLodgeTax to get all my necessary permits and file my taxes correctly and promptly.  Literally could not do this without them, the tax compliance is complex in my area and they make it easy.  I have no problem with a company that makes compliance easier on hosts, who should always be vigilant to act in compliance with local regulations.

    0Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y

    One more vendor to give your hard-earned money to!

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    6y

    Just have to bake this into the rental price.

    I thought Vrbo and Airbnb automatically took out these taxes and remits them on behalf of the owner?

    0Reply
  • Justin Anderson
    Property Manager · Pigeon Forge · Member since 2016 · 199 posts · 208 votes
    6y

    They do in some jurisdictions.  For example in Pigeon Forge, airbnb collects and remits around 9% of my overall 12.8% tax rate.  (They leave out local taxes of about 3% plus a business fee of around .15%)  VRBO collects zero of them and I set it manually to collect and pay.  (Numers slight off since I'm on mobile and it's from memory)

    It's a mess and worth the $20/m Avalara charges to compute and submit it.

    1Reply
  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    6y

    Ok let’s just let it be known

    If you are renting a property short term

    (Airbnb/VRBO)

    YOU HAVE TO PAY STATE (sales) AND LOCAL (occupancy) TAXES EVERY MONTH!

    Yes... you can charge these taxes to the guest but they will pass through your bank account (depending on your state)

    Mylodgetax.com is the solution.

    There is a TAXES and FEES section on to VRBO Rates Page in which you can put in literally any additional fee you want in the form of a percentage. This would be a good spot to put in your tax amount.

    Airbnb: Booking Settings/Extra Fees/Management Fee % 
    (Not everyone has this on Airbnb -it is in beta and will be desktop only) 

    If you are not paying state and local taxes MONTHLY -you are breaking the law. 

    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    2Reply
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