If you’ve been thinking of adding your home to the site, it could be a smart way to boost your annual income using a property you already own. But hosting on Airbnb doesn’t come without its drawbacks. Before jumping in, make sure you consider the pros and cons of sharing your home—as well as those of sharing on Airbnb specifically.
Advantages of Sharing Your Home on Airbnb
The added income is probably the biggest perk of listing your home on the Airbnb platform. Plus, the site gives you the power to set your own pricing, as well as adjust it as you see fit (during in-demand times and holidays). There’s even a “Smart Pricing” tool that takes into account local demand and can help you settle on the right number. Listing your home on the site is free, too, so if you just want to try it out, there aren’t any costly sign-up fees or membership dues. You simply list, set your price, and share your home. Hosting on Airbnb also offers a lot of flexibility. You’re not required to host 24/7, and you can pick and choose which days you want to offer to potential guests. You can even sync your listing up with an existing calendar to ensure it lines up with your personal schedule. You can also create your own house policies, as well as choose how much (or how little) of your home you want to share. List just a bedroom or garage apartment, or share the entire home—whatever fits your needs best.
Disadvantages of Sharing Your Home on Airbnb
Of course, there are also some drawbacks to sharing your home on Airbnb. First, you might need extra insurance on your home. You may want it to protect you from potential damage or theft (by your Airbnb guests), or in some cases, your homeowners insurance may require it. At the very least, you will want to alert your insurer that you’ll be hosting. Another issue is that you may violate the laws of your local municipality or your homeowner’s association bylaws. Many HOAs have restrictions against short-term rental activity, as well as using properties for what it considers commercial use. In addition to this, some cities such as New York have enacted bans or strict restrictions on short-term rentals. Others—like Las Vegas—require licenses before you can use your home in this capacity. Finally, there are also costs to consider. In addition to the expenses associated with cleaning and maintaining the home, you’ll also pay a service fee for each guest you book. This fee is usually around 3%. If Airbnb isn’t the right fit for listing your home, there are several other outlets you might consider using. VRBO is one of the most popular, as is its partner site HomeAway.com. Other options include:
Booking.comVacasaFlipKeyHomestayWimduInclusiveKid and Coe (for kid-friendly homes)
Make sure you compare fees, restrictions, and policies before deciding which platform to list on.
Check your HOA bylawsStudy up on short-term rental policies in your cityTalk to your insurance agent about how to protect yourself and your belongings
