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Airbnb has been around for a while now. While most investors rent out their homes as a whole to Airbnb, many new investors are renting out a room in their home.
But first, if you want to learn more about how the financial side of short-term rentals within their home can impact your mortgage, click the link below for a free strategy call today.
The basics
If you travel frequently and are up-to-date regarding current issues, you’ll know what Airbnb is. It is a way through which homeowners can host guests temporarily in the spaces in their house that they’re not currently using. It is a great way to get some cash in, but you need to look at this issue from all aspects to decide whether or not it is something worth getting into.
An easy way to make money!
The most apparent advantage of Airbnb is that if you have an empty room in your house that is not being used by anybody (this is usually the guest room), you can let it on Airbnb and make some extra money. For almost no cost, you’ll have more money to help with the payment of bills and mortgage payments.
Guest security
The biggest fear that people have when letting a room on Airbnb is that they are afraid crazy people might come into their house! This is not irrational at all, and Airbnb has the complete information of their guests on their website for security, and in addition to this you can chat to your guests beforehand and look at their ratings on Airbnb to be sure. While this may not eliminate all your fears, it can go a great way in indeed reducing them. You can also forward this information to a trusted friend or family member so that they know who is living with you currently.
Discover How To Rent A Property With This Step By Step Guide
Better than traditional renting
The most significant advantage of using Airbnb rather than the conventional method of renting is that Airbnb is way more flexible. Regarding renting, you have to give your tenant a fixed price for a fixed number of days legally. In Airbnb, you can make way more money due to the competitive pricing options and block out those days on your calendar when you don’t want any guests to be in your house. So you won’t be bound to let your house for an entire month, or for however long the lease is, and you can choose the days on which you want to host.
Your mortgage rate might increase
When you become an Airbnb host, you might not always have to face legal consequences, but in terms of the home mortgage, becoming a host can lead to your property being classified as an investment property leading to higher interest and mortgage rates depending on the lender you work with.
Potential legal consequences
As we have mentioned before, becoming an Airbnb host does not always lead to legal issues, but you still need to be aware of specific problems that may potentially arise. For example, certain cities are pushing back against Airbnb and other similar platforms, and becoming a host may also violate homeowners’ association policies and homeowner’s insurance policies in such areas. Also, some cities may require special licenses and registration to operate an Airbnb, so be sure to check for such policies in your area so that you don’t find yourself in a sticky legal issue afterwards.
So, if you are interested in learning more about the financial side of short-term rental investing, click the link below to book a free strategy call with our team at LendCity today.