Source: U.S. News —
Vacation rentals have surged in popularity in recent years. In fact, 2021 was the best year in Airbnb’s history. Bookings were up almost 50% compared with 2019, and new hosts alone earned nearly $2 billion across the past year.
If you’re a homeowner, you might be considering a foray into the business yourself – especially if rising inflation has got you down.
According to data platform AirDNA, the typical short-term rental brought in a record-breaking $56,000 each last year – a 35% jump from early 2020. Could funds like those help you stay afloat? Here’s how to turn your home into a vacation rental – and ensure its success.
The first step is to make sure short-term rentals are actually allowed in your city, as many have banned them or restricted them severely. In other spots, there may be some red tape to sort through – like getting a business license or registering with the city.
“Regulations are a big topic in the short-term rental world, and it’s absolutely essential that you check – before you start renting – what the local laws are,” says Alex Haler, a strategic account executive with AirDNA in Denver. “Regulations can mean anything from registering for a different tax rate to an annual fee for a license to specific limitations on what properties can be rented out – and fines can be high for those who don’t follow the rules.”
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