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Costs to Consider When Using Airbnb to Rent Out Your Home

Renting your home out to Airbnb guests can be an excellent way of securing extra income. However, you need to make sure that you understand that there are costs involved with the process. 

Once you are aware of these costs you need to take them into account when calculating the amount of income that you can make. Here are some of the major costs that you can expect to encounter. 

 

Tax paid on rental income

If you rent out your home for more than 14 days each year then you have to declare the rent that you get as income. It’s also worth noting that deductibles are not normally appropriate as you are renting out your personal home. Therefore, you need to be aware that the rental income you receive will be reduced once you pay tax on it. This does not apply if the rental period is 14 days or less. 

 

Insurance for the property

It’s important to remember that your domestic property insurance does not cover use for Airbnb guests. You need vacation rental insurance that is a blend of domestic and commercial property insurance. It’s important to make sure that you invest in the right insurance so that you are fully covered should any incidents occur. 

 

Airbnb fees 

Although listing your property on airbnb is free of charge you should be prepared to pay an associated service fee. This fee is 3% for each reservation and it’s charged by Airbnb to cover the cost of processing the transaction that is involved. 

 

Supplies for use at the property

If you are renting your house out to guests, you need to make sure that the property is prepared for their arrival. This includes making sure that guests have enough supplies to use during their stay. There are some supplies which are essential such as clean bed linen and towels. You may also want to include items such as a welcome basket of food. You need to factor in the cost of these supplies when you calculate the expenses associated with renting out your property. 

 

Cleaning the property

In addition to ensuring that there enough supplies in the property, you also need to make sure that it’s clean before your guests arrive. You may choose to do this yourself but if you have the property cleaned professionally this will obviously cost you money. Cleaning may also be necessary after your guests leave, especially if they have made more mess than you expected.

 

It’s certainly worth considering renting your property out using Airbnb, or a similar service. You can make money by doing so without having to make a large amount of effort. However, it’s important to take into account the costs that you will encounter so that you can correctly calculate the amount of profit you will make. Take these costs into account when you are deciding how much rent to charge so that you can optimize the amount of money that you get.

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