Airbnb: The Yays not Nays

It's important to note, while these ideas may pertain to homes being used on Airbnb part time, it's dedicated to homes earning on Airbnb on a full-time basis. 

If you've found your way to this blog post, and made your way past my deceptively catchy title and disclaimer right there ^, then you're probably on your way to owning your first Airbnb home. Let's jump into just a few pros that will get you on your way to feeling confident and secure about your new venture. 

1. Earning Potential 

Like with everything in life, we start with what we know. And what is it that we know? That we want our assets to put money into our pockets. This is achieved two ways: long term contracts, and short term contracts. If you're reading this, then you've probably already concluded that the typical long-term rental contract isn't the thing for you. 

Airbnb offers a way to earn rental income at either greater or lesser rates than typical rental incomes. Notice a key word in that last sentence: "earn." That's right. You work for your Airbnb customers. You are earning their business, and in turn, they reward you with more of it. I'm often surprised at how my earning potential is directly related to the creativity and attention I provide to my customers. It's a hands-on process that can be very rewarding. But if left untended, don't expect to earn a dime. 

Vacancy rates are described differently with an Airbnb properties. Depending on location, you are going to have high seasons and low seasons. If a steady rental income check is what keeps you from going insane, then please, do not list on Airbnb.But if you are willing and able to not see a return some months, and have an overwhelming response other months, then Airbnb can be your playground! 

2. Protection 

Airbnb offers many protections where long term rentals may fall short. The most obvious being the treatment of your home. Often times, guests have a lot on the line: it's called a Security Deposit. Guests at my homes are fronting up to $700 in security deposits - not something you want to lose on a casual weekend because a few buddies had one too many! They don't treat the home like it is their own, because unlike a rental property, it isn't! Rental properties often have a terrible reputation that simply doesn't exist in the Airbnb community. If you're renting a home for a weekend, odds are, you're not going to treat it poorly. 

On top of that, Airbnb has a fantastic $1,000,000 insurance policy on each and every booking. I don't know anyone who has ever tapped into this, but I was reassured  by several Case Managers at Airbnb after having been threatened with a lawsuit from a deranged guest. I had the full confidence and backing of Airbnb and their $1,000,000 policy should I had needed legal representation. 

3. Tax Advantages 

While I won't go into all the details of planning for the tax man, there are many many tax benefits to using Airbnb over a traditional home rental. Namely, expenses. Airbnb properties incur a LOT of expenses on a recurring basis - far more than any other type of rental income. 

Cleaning fees. While never actually costing you anything (the cleaning fee is levied onto the guest), cleaning fees are fully deductible as expenses. How do you like deducting something that never actually cost you anything? I know I do! 

Service Fees. On each and every booking, Airbnb charges a Service Fee to both the guest and you as a host. When April rolls around, little do most people know that these Service Fees can be deducted as an expense against your business. It's the cost of doing business with Airbnb, but it is, in reality, a loss of income! 

Utilities, Advertising Fees, Amenities, Property Taxes and any other costs associated with running your Airbnb business are tax-deductible and should be carefully considered.  

I'm sure these pros to jumping in the Airbnb game were life-changing in every way imaginable. And if not, leave your comments below. 

Happy Airbnb'ing!