Are you thinking about becoming a host on Airbnb or another short-term rental platform? Despite conflicting views about short-term rental regulations, the rewarding benefits for hosts are indisputable. Here is why renting out your property pays off:
1. Subsidize your income: According to an Airbnb report, hosts earn an average of $10,000 per year in renting out space to tourists visiting New Orleans. 84 percent of the visitors said they’re likely to return to New Orleans. Airbnb also reports an estimate of $150 million in economic activity generated by Airbnb guests (based on 267,000 people who used Airbnb from July 1, 2015 to July 1, 2016).
2. Meet new people: Your guests will most likely come from all walks of life. You will get to share your culture and connect with people from all across the country and the world.
3. Learn new skills: As a short-term rental host you are not only a property owner. You are essentially running a small business. You will learn new skills, from marketing to customer service, negotiation, communication and finance. With those skills you can turn your property into a money-generating business.
4. Use large platforms: By licensing your property as a short-term rental, you can legally advertise your property on large platforms such as AirBNB and VRBO. These will connect you with tons of potential guests. Being part of these networks saves you a lot of time trying to reach potential renters.
5. Potential tax break benefits: Consult with your tax advisor or CPA regarding tax benefits.
6. The potential for increased property value: You can potentially increase your property value, which is a big selling factor in case you want to sell your property in the future.
7. Corporate rental opportunities: Large Corporations often rent homes for offsite meetings, product launches or even housing for new hires. Corporations are willing to pay a high price if your property is what they are looking for.
Still not convinced? Here are 7 tips for the first time Airbnb hosts.