It’s been quite an uncertain year for Airbnb. As the global health crisis practically crippled the travel and vacation rental markets, for a time, Airbnb users who listed their properties on the app lost their primary sources of income. But after securing emergency funds and finding other workarounds, Airbnb Inc. is now ready to go public on NASDAQ, to ensure billions in added funding at the turn of the decade.
In short, the company and the rest of the short-term rental market seem to be looking forward to a great year. And with NASDAQ funding, Airbnb further legitimizes itself as a real estate rental company.
It’s an affordable way to start a legitimate and registered business
As one of the over 7 million properties listed on Airbnb, you can register as a business and reap long-term tax benefits and other advantages. In a guide to starting an Airbnb by ZenBusiness, the site notes how those who want to leverage such benefits can do so by registering as a limited liability company (LLC). Choosing to be a sole proprietorship or an LLC is often seen as the best option for small business registrations. And while the former is cheaper and much quicker to start, the latter can give you and your assets legal liability protection. If you’re concerned about the legalities of Airbnb rental, liability protection shields your personal assets from being seized for any debts or other legal liabilities that your business or Airbnb itself incurs in the future.
Gaining legal liability protection is the main reason why companies incorporate. But while becoming a corporation is an expensive and lengthy process, LLC formation is comparatively much cheaper. For registering an Airbnb business as an LLC, you’ll typically need to spend a couple of hundred dollars for specific fees and processes, which can differ from state-to-state. That’s a small price to pay for what you stand to make. Although the average revenue for the over 7 million properties on Airbnb swings wildly from $200 to $10,000, for better or for worse, it’s an excellent way to maintain a channel of passive income. You should also factor in the costs of remodeling or redesigning your property before actual listing – and such expenses could be considered as business tax write-offs if you’re registered as an LLC.
Long-term rentals are an option
While Airbnb is commonly associated with quick and short-term stays, it has offered long-term rental options for quite some time. And entering this market is an excellent way to develop a passive income from your property through Airbnb’s already optimized app and systems. In our guide to keeping good tenants from our Blog, we previously stressed the importance of avoiding unnecessary tenant turnover, which can hurt any rental property’s long-term gains. This includes handling complaints as quickly as possible, making improvements and repairs, and allowing tenants some freedom in making the rented space their own. Airbnb already has built-in mechanisms that make these tasks easier for any landlord, even for those who have zero experience being one.
As we detailed in the article ‘7 Tips for Investing in a Rental Property’, the first and topmost concern for anyone planning to rent out a property is whether or not they’re ready to become a landlord. How well can you perform home maintenance tasks, and what’s your capacity to delegate the repairs that you can’t do? If you’re willing to take on being a landlord and form a legitimate business in the process, it’s time to give Airbnb a try.
The article was written exclusively for chorerelief.com By Riva June
The post Here’s Why You Should List Your Rental Property on Airbnb appeared first on ChoreRelief.
source https://chorerelief.com/heres-why-you-should-list-your-rental-property-on-airbnb/
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