Tuesday, July 21, 2015

Take a cautious approach.
Of all the categories shaken up by the sharing economy, few are as
transformed as lodging. For travelers, ditching the hotel for Airbnb can be a
more affordable way to go. And on the flip side, offering your own home or
apartment to vacationers can earn you cash—$100 to $150 a night on average,
according to Airbnb, much more in some popular destinations. That can be
fairly easy money. Unless something goes wrong, in which case it can be a
disaster. You need to protect yourself from legal and financial risks.
Here's what home sharers should know. Assess Your Earning Power If
you want to rent out a room in your home while you are living there, you can
post an ad for free at Airbnb, which takes a 3% cut of your rental fees, plus
an additional 12% to 15% "service fee" from your guest. You set your own
price; the site verifies users' identities and provides guest and host
reviews. You can also rent your place while you're away through Airbnb,
or through vacation rental sites like VRBO and HomeAway, which charge a flat
annual fee of $350 if you're a regular user, or 10% of each rental if
you're just dabbling. Understand Your Risk Depending on where you
live, short-term rentals could violate municipal laws or homeowners
association regulations. You might be required to pay an occupancy tax or get
a special hotelier's license. (Consult a lawyer or visit town hall to check
local rules. ) If you rent for more than 14 days a year, you'll also need to
report the income on your taxes. But those aren't the big dangers. The
worst-case scenario is that a guest burns down your home or gets injured
there, in which case your standard homeowners policy may not cover the claim.
"So that $2,000 rental fee could turn into losing everything you've
got," says San Francisco attorney Tad Devlin, himself an Airbnb host.
Play It Safe Don't just rely on the home-sharing site's standard
insurance plan, because the coverage is generally too ambiguous, says David
Reiss, research director for the Center for Urban Business Entrepreneurship at
Brooklyn Law School. Your existing homeowners policy may cover you for a
single rental of less than two weeks, but call to ask. More than that and
you'll need to switch to a commercial policy, which covers paying guests and
typically costs an additional $500 per year, says Scott Wolf of CBIZ Property
& Casualty. Or try home swapping. For a small annual fee, sites such
as HomeLink and HomeExchange connect people who want to visit each other's
location; because no money changes hands, you may avoid tax and liability
issues. Still, check with your insurer—and of course, you need to be
extremely cautious about who you let into your house. As a rule, none of
these sites conducts background checks, so do your own by Googling guests and
searching their social media accounts. "Five years from now, the laws
and the insurance policies will have caught up with the sharing economy,"
Reiss predicts. "For now, though, it boils down to how risk averse you are.
" This story originally appeared on Money More good reads from T+L:
• 5 Things No One Tells You About Owning Vacation Home Rentals
• How to Negotiate a Killer Deal on Your Summer Vacation Rental
• Airbnb Says Renting Your Place Is Like Getting a Big Raise
Did you enjoy this article? Share it.
Previous Article How Dream Destinations Differ Between Women and Men
Next Article Own a Rolling Vacation Home Inspired by Prairie-Style Cottages
Of all the categories shaken up by the sharing economy, few are as
transformed as lodging. For travelers, ditching the hotel for Airbnb can be a
more affordable way to go. And on the flip side, offering your own home or
apartment to vacationers can earn you cash—$100 to $150 a night on average,
according to Airbnb, much more in some popular destinations. That can be
fairly easy money. Unless something goes wrong, in which case it can be a
disaster. You need to protect yourself from legal and financial risks.
Here's what home sharers should know.

0 commentaires:

Post a Comment

Travel Club. Powered by Blogger.

Popular Posts

Popular Posts

.