I’ve been renting out my home on Airbnb for four years and I love it, but there are a few things I wish I’d know before I got started.
For one thing, I’ve learned that using a third-party pricing tool means I can charge the best rate for the season and day of the week.
I’ve also learned that I can take some tax deductions from Airbnb-ing my home, including writing off a portion of my mortgage interest.
personal finance coverage.
If you’re considering renting your property on Airbnb but aren’t sure whether or not to commit just yet, you’re not alone. It isn’t a decision to make lightly, and there are several things to take into account before you decide to start renting your place on Airbnb.
I’ve been renting my property on Airbnb for four years and I’ve found it to be a rewarding, freeing, and profitable experience, though there are a few things I wish I’d known before I got started.
Here are five bits of advice to consider before renting out your own space.
1. Use a third-party pricing tool
Depending on the location, prices can vary drastically from week to week and season to season. Using a pricing tool automates price setting and ensures that I get the highest nightly rate possible.
Airbnb’s pricing tool tends to price listings too low because Airbnb has different incentives (e.g. they want as many people as possible using their site vs. other booking sites).
A few third-party pricing tools include Beyond Pricing and Wheelhouse, which are both great options that provide dynamic pricing insights and trends.
These tools aren’t free, but the small fees are offset by the money you’ll make by pricing your rental appropriately. On top of that, you can automate your pricing style so that you can set it and forget it.
2. Guests just want to be left alone
As I learned pretty quickly, just give your guests a nice, clean place to stay with everything in good repair and they’ll be happy. There’s no need for extensive in-person check-in instructions, but feel free to leave them with a written guide to the local area and an invitation to ask for recommendations.
Some travelers use Airbnb to be social and make local friends, but many just prefer a comfortable place to relax.
Usually, if I want to make lots of friends, I’ll stay in a hostel or social enterprise accommodation; when I’m staying in an Airbnb, I generally need to hunker down and get some work done while enjoying some me time. I’ve found that most guests enjoy that hands-off approach.
3. You can get tax deductions
You can take several tax deductions from renting your place on Airbnb, such as writing off a portion of your mortgage interest.
The only difference is that you have to calculate the fraction for which you can take those deductions based on your occupancy vs. guest occupancy. This is an important thing to know — don’t forget to …read more
Source:: Business Insider