These days, having a side hustle or other way to earn some extra income is not unusual. You may already have a gig that you do outside of your regular job in efforts to have a little more spending cash. However, because these jobs can take up more of your time, you want a passive way to potentially earn something extra. As a result, you are considering renting out your already-owned property or buying property for short-term rental.
Short-term rental has increased in popularity, particularly due to sites like Airbnb and HomeAway, which allow property owners to list their rentals relatively easily. The apparent ease may have caught your interest, but you may want to remember that you have a lot to consider before moving forward with this type of endeavor.
Numerous legalities affect short-term rentals. In fact, the area your property is in may have regulations that prevent short-term rental. As a result, you need to know whether you can rent your property before you list it or before you buy property with the intention of listing it for short-term rental.
Even if your area allows short-term rentals, it may impose strict stipulations that you must meet for renting out property. For example, the number of days you can rent the property may have a maximum set by area laws. A regulation could also exist that you, as the property owner, must occupy the property for a set number of days every year. These regulations could limit your earning potential.
Though you may want to list a short-term rental to earn extra income, you need to keep in mind that this endeavor comes with expenses of its own. You will need to take out the appropriate insurance coverage for a rental, which could increase your regular insurance payments. Though listing sites like Airbnb have certain liability coverage, it is important that you understand how that coverage works and whether you need to take additional steps to protect your interests.
Other expenses could include the fees charged by the listing site. For instance, Airbnb and FlipKey charge a 3% host service fee, whereas sites like VRBO have an annual subscription fee or pay-per-booking option.
Before you make moves
Before you take the steps to buy a short-term rental property or list your already-owned property on a rental site, you may want to ensure that you understand what you are getting into. Fortunately, contacting a Pennsylvania attorney experienced in handling affairs associated with short-term rental property could help you understand the needed details.