Renting your home or your spare room out through a site like AirBnB is a great way to earn some extra cash, but there are some pros and cons that you should take into consideration before you list your property.
- The biggest pro of all is the extra income that you can generate.
- The second biggest pro is the clean out that you usually have to make space before the guests arrive and to present your home in the best possible light. Unless your home is huge, it’s difficult to be hoarding a heap of stuff if people are going to have access to your wardrobes, linen press, pantry and cupboards. It’s also a good excuse to clean out the kitchen cupboards and drawers that rarely get used but aren’t always the tidiest of places.
- Finally, it’s a great way to welcome guests to the way you live in your local neighbourhood. I have a friend who rented her Bondi apartment out every Christmas and New Year and she loved the fact that she could share all her favourite tips for coastal walks, cafes, fancy restaurants, parks – everything that she loved about her home town could be shared
- Make sure it’s allowed – by your council, and, if you’re in an apartment or strata complex, by your Body Corporate. And, if you’re in a rental, definitely run it by your property manager.
- The income you earn is taxable income, so make sure you declare it on your next tax return.
- Check with your accountant as to whether generating income from your home will impact you with Capital Gains Tax when you sell your home.
- Check that your insurance covers you for rental guests.
- The risk of having a tenant “go rogue” and causing damage or mayhem. That’s no fun at all!
- The clean up – although the cleaning fee you charge should cover the cleaning after the guests have left.
AirBnB is a great way to put your home to work and generate some additional income… just make sure you go in with your eyes wide open.