Is Airbnb Investing Legal???

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When I first came across the Airbnb business model specifically the Arbitrage Strategy I was blown away by how profitable and easy it all seemed. Then my second thought was whether or not it was even legal to begin with. As I've answered a lot of questions from people on the forum and in real life I've realized that I'm not the only one with those initial concerns. 

So to begin, yes Airbnb Investing is a legitimate business regardless of what some of the critics will say. You should create a legal entity and keep it in good standing as you would any other. What people don't realize is that "Airbnb" is not the actual business. Airbnb is just a platform that you are leveraging as you could any other such as VRBO, vacation rental sites, or even craigslist. 

But is it legal?

That depends on several factors and of course how you conduct business.

If you are using the Airbnb Arbitrage business model and you are not communicating the fact that you are listing the owners property online then you are at the very least doing something unethical and it's only a matter of time before you get shut down. 

If you are in a neighborhood that has a strict HOA or other regulation on Airbnb and vacation rentals but you choose to do it anyways then you may be breaking the law.

If you are not paying the required taxes in your state, city and local municipality then obviously you are in the wrong. 

If you do not have your business in good standing with the proper licenses then you may be breaking the law as well.

However if you are a "professional investor" if you do your homework and are responsible in your business practices then you will be just fine when starting up your Airbnb/STR business. There are a lot of people (some on this forum) who will try to scare you into thinking that Airbnb is being shut down all across the globe and that you will have to pay hundreds of thousands of dollars in fines if you list your property. This happens to some people who are not professional investors and to people who knowingly break the law. There's no excuse for that, period.

The truth is that you can make a TON of money with the Airbnb business model whether you're using arbitrage or not. It's actually a lot less risky than doing the long term lease route and you can scale your portfolio much faster. And if you're worried about the market viability then understand that Airbnb is dominating the STR industry. The hotel giants are being put on their heels and are scrambling to compete with the ever growing Airbnb market.

Guys listen to me when I tell you that NOW is the time to get into Airbnb as an investor. In 5-10 years you could be a market leader in your area making A LOT of money.

Good luck.

P.s. As always if you have any questions don't hesitate to reach out on private message.