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5 Things to Think About Before Listing Your Home on Airbnb

According to AirBnB, there are around 800,000 AirBnB stays each night, and there are nearly 3 million hosts worldwide. More and more people are turning to home sharing for their short-term rental needs. If you own a second home or have a spare room, you may have thought about renting all or part of it as a short-term rental on a site such as AirBnB or VRBO. Here are some things to consider before you hit the “list” button.

1. Your homeowners’ insurance policy.

It is a good idea to reach out to your insurance agent to discuss your insurance coverage. Certain exclusions in your policy could prevent you from being covered in case of an accident. Your agent can review your policy and add any additional coverage you may need.

2. Local zoning codes.

Contact your city to inquire as to short-term rental or use. This may also be called seasonal or transient use or rental. If there are restrictions in place that would prevent you from listing the property, ask about a zoning variance or conditional use permit that would allow you to proceed.

3. Your property owners’ or homeowners’ association regulations.

Is your neighborhood part of a POA or HOA? If so, there are specific rules you agreed to abide by when you purchased your home. Renting out all or part of your home may violate those rules and could result in a lawsuit being filed against you. Locate a copy of the POA rules and read them thoroughly. If you have any questions, ask your POA president or schedule an appointment with one of our attorneys to discuss.

4. Taxation.

In most situations, you will need to report all income received from renting your property, but there are some exceptions. On the flipside, you may be able to deduct certain expenses from that income. Now is a good time to develop a relationship with a qualified CPA who will help you navigate the potential tax implications of your specific situation.

5. Rules and expectations.

Just like you would in your own home, it is a good idea to develop a set of “house rules” for your rental property. Will you allow pets? What day is trash pickup? Does the neighborhood have quiet hours? Where is parking allowed? Having a clear and non-negotiable set of rules in place will better protect you in the event of an incident or if the property is damaged in any way.

The attorneys at Danielson Law Firm can help you wade through the legal issues associated with listing your home as a short-term rental. Call our office or contact us here to set up a no-obligation appointment to discuss your situation.  

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Fayetteville Law Office

(479) 935-8313

909 Rolling Hills Dr.
Fayetteville, AR 72703

Booneville Law Office

(479) 935-8060

4 Village Loop
Booneville, AR 72927

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