If you have extra rental space, Airbnb can become a great source of extra income. Whether it’s a room in your home or an entire apartment, your space is in demand! So you want to start an Airbnb? Read this first:
Learn the local laws
Before you list your space on Airbnb, it’s important to consider your local laws.
For example, if you rent a property from a landlord, and you’re listing it on Airbnb, you’re likely going against your lease. Breaking the rules of a lease could get you evicted, so it’s important to check beforehand.
Be sure to keep in the loop as many cities are refining and changing their regulations for Airbnbs.
You’ll need to keep it all on Airbnb
We mean payments and messaging. Airbnb doesn’t like when hosts are paid via other methods than through the platform, and doing so could get you in trouble. It’s to your benefit to take all of your payments through Airbnb – while they take a portion of your profit, they also provide a level of payment security that you can trust.
You should also keep all of your communications on Airbnb. Not only does this help you better vet your guests, and set good boundaries with your guests, but it also ensures that you are covered should to need to bring up any issues to Airbnb. Their customer support department is available to you, and they’ll need access to your interactions should you ever have any issues.
By hosting your space on Airbnb you Airbnb offers up to 1 million US dollars in insurance – to protect against personal injury property damage claims.
Fees and Taxes
As a host on Airbnb, you set the price for your property or space. Monitor your pricing to see when it needs to be decreased or increased based on the number of bookings you’re receiving and the demand for your property.
Guests who book Airbnb listings that are located in the City of Ottawa, Ontario must now pay the Municipal Accommodation Tax as a part of their reservation. The Municipal Accommodation Tax is 4% of the listing price including any cleaning fees for reservations 29 nights and shorter. Learn more on the City of Ottawa website.
Airbnb charges two different fees:
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The first, a host fee is charged to you, the host. This is a 3% payment transaction fee. Keep this in mind when setting your prices.
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Airbnb charges guests a 6-12% booking fee.
Hosts can request a security deposit and also charge a cleaning fee.
Airbnb will also apply taxes depending on your location.
When in doubt, do your research.
The key to a successful Airbnb? Knowing your stuff. If you’re not sure of something, do some research. By making sure you’re aware of the laws, fees and rules, you’ll set yourself up for a profitable BNB!
Need help with your Airbnb? Contact us at info@shortandsuitebnb.com!
