Be careful as a landlord with Airbnb

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Services for Real Estate Pros 0659282

I know a lot of you entrepreneurs out there do not want to hear this, but it's only fair that I tell you.  Although Airbnb is a very nice alternative to hiring a real person; i. e., a realtor, it may not always be the safest route for making money legally.  

I am certain that there are many landlords out there who try and successfully skirt around the rules and regulations of your HOA, but rest assured that if and when you get caught the consequences can be quite severe.  Before you get into this read your homeowner's docs to see if it is okay first.  Odds are it's not.  Your association, of which you so graciously and voluntarily joined, will boot out your customer and void any agreement you have.  They may even be able to fine you.

On the other hand, some cities restrict short term rentals like this altogether.  Others require a permit or license.  Failure to do so can lead to fines, etc. You may even be obligated to collect some kind of tax, sort of like a hotel collects a "bed tax," for instance.  Florida's bed tax is 6%.  In Miami Beach, Florida's hottest locale, single family homes are off limits to short term rentals and everything else must reside within a particular zone.  Fines can be levied by as much as $7500.  

Your best bet is to contact your city and get the details before going into business.  And remember, all of this money is taxable like income, so be prepared to pay Uncle Sam too.  Would it help hire a realtor for this?  Probably not.  Rules are rules and any realtor who says they can skate around them is shooting you a bunch of Bologna. 

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Morris Massre
https://about.me/mmassre
 

 

Comments (3)

Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Morris- it would seem to many to be a quick way to make some  cash but you're right- don't try to get around the HOA or the laws.

Jul 06, 2016 12:20 PM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Morris. Air BNB is not the solution for most and can be very very dangerous for all involved.

Jul 06, 2016 08:41 PM
Cody Carmen
Adhi Schools, LLC - Rancho Cucamonga, CA
Market Analysis--Educational Content, Adhi Schools

Hey Morris, just got here via re-blog. Excellent article that quickly sums up some legitimate concerns about what appears to be a great way to make some quick money. What is legal or permissible in one place is not always legal or permissible elsewhere; people need to understand that. 

Apparently others have also had a problem with removing AirBnB squatters. Not sure how realistic that risk is and it would indubitably vary by state and locale, but at least for some this is another risk. 

Jan 09, 2017 08:57 AM