Having real estate property that has no occupants is like leaving money on the table. Setting up a home of short-term rentals is a great way to establish passive income with little effort. If you are considering e\stablishing your home for an Airbnb, you need to be sure that you are complying with state laws regarding the matter.
Lately, Philadelphia lawmakers have been acting to redefine the definition of short-term rentals in their state. With ever-changing laws, is it possible for you to turn your property into a short-term rental?
How to set up your home for rentals
The first thing a property owner will need to do is determine if their zoning ordinances allow for short-term rentals. Some zoning laws are against homes being used for anyone other than a single-family dwelling. Check with your local city hall to confirm what eligibility you have to get into short-term renting.
If your home is eligible for rental, you will need to abide by more laws. According to state law, any property owner who rents their home to someone for under 30 days to the same party needs to adhere to the Pennsylvania hotel occupancy tax. Despite its name, the tax applies to rooms, apartments, and houses in addition to hotel rooms.
If a property owner works with a third-party agency like Airbnb, the third party collects taxes on behalf of the hosts. Be sure to confirm with the agency what their policy is for handling state taxes from the rental property’s income.
Make sure your rental is legitimate
Making the most of your available property is a desirable goal for property owners. If you are looking to explore this possible source of passive income, consult with a real estate attorney to verify if you can become a short-term renter.