Anica Oaks https://www.managebrooklyn.com 3m 402
The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Running an AirBNB is an excellent way to increase your income, but there are some associated costs that all hosts should be aware of. Taking those costs into account will help you avoid tax issues down the road and ensure that you make the most out of your venture.
AirBNB provides a platform where guests can easily find great hosts, and they charge a few different fees for their services. The fees that are taken out of your booking totals depend on a few different factors, and that includes where the home is located and what type of hosting you would like to do. You also have the option of sharing the fees with the guests, but that could lower the number of bookings that you receive in the coming years.
Well before you even consider becoming an AirBNB host, you should take a closer look at your taxes to see what changes will need to be made. If your home is rented out for more than a few days a year, then AirBNB will automatically report that information to the IRS. That is one of the reasons why all hosts should record as much information as possible when it comes to their total earnings as well as their ongoing business expenses.
Keeping the home clean and well-maintained is another recurring expense that hosts should keep in mind. Instead of carrying out cleaning and maintenance on your own, you might want to consider hiring a reputable property management company. That type of company will be able to assist you with a wide variety of services, and that includes general maintenance, hiring professional cleaners, regular inspections, and violation oversight.
There are a few different supplies that AirBNB hosts will want to keep in their homes. While you aren’t required to purchase a second set of linens, that is typically a good idea for anyone who plans on regularly renting out their homes. You will also need to stock your home with consumables such as toilet paper, paper towels, hand soap, dish soap, shampoo, and conditioner.
In addition to these straightforward costs, you might also want to spend a little bit of time going over your home insurance policy. Running a business out of your home will most likely require additional insurance so that you are covered in the event of an accident or injury.