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Updated over 8 years ago, 05/05/2016
Can I airbnb my primary residence fulltime while renting elsewher
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Depends on your local laws and regulations. You need to consult with a local LL/T lawyer to determine if it is allowable.
I just did a quick search on airbnb for San Jose, California and I found many houses. While talking to a lawyer is a good idea, you can always start by asking airbnb's customer service.
Check this out for the legal info:
http://www.roomscore.org/report/san_jose
You can try to list it, and see how the demand is. I would highly recommend having either a 3rd person to photograph and stage your house, unless you really thing you got it down. If you are not sure, it is likely your clutter will make your house rent for less.
Your house is the product! :)
Also speak to a local authority/lawyer about the tax laws specifically. Some cities are attempting to charge hotel taxes for Airbnb rentals
A lot of cities collect tax through airbnb already.
Hi Emily,
This is in the legal section so I assume you are asking about legality. I'm not a lawyer so I would recommend consulting with one but some things to check. Do you have an HOA have restrictions on rentals less than 30 days? Do you have nosy complaining neighbors who would report you to authorities. Short term rentals are so new the laws haven't really caught up so there are grey areas they don't prohibit airbnb but may say rentals but be 30 day minimums or you need to be permitted as a hotel and collect hotel tax from your guests. Most people ignore this until it is fully codified.
You will also probably have to switch your homeowner insurance from owner occupant to innkeeper's. I went with CBIZ and it wasn't that much more expensive. Airbnb has coverage some coverage but I don't feel it replaces having your own policy, which your mortgage holder will require as well.
You may want to try staying at friend's houses on weekends or high demand times to try airbnb out. Also having a few reviews before you go into it full bore will help you in the long run
Al Wiliamson wrote a good article about other things to consider. One big one is to make sure it is more profitable than long term tenants when you include all expenses and your time.
Also further to @Rafael Floresta's comment good pictures are key and airbnb used to and probably still will take pictures for you for free in your area
@sean they do but they dont stage. And staging does pay.
@Rafael Floresta when you stage are you allowed to keep the furniture (on a rental basis) for your airbnb or is it strictly for the pictures?
@Emily Shirk What do the numbers look like? Does it make financial sense in SJ?
You can. But wouldn't that make your primary residence not your primary residence and your place you rent your primary residence?
If so, you will need different insurance on the original primary residence.
And as I mentioned in your other thread, few people understand the impact of an AirBnB rental, mainly the fact that it will cause profits to be subject to self-employment taxes if your average stay is less than seven days.
Originally posted by @Donny Widjaja:
I just did a quick search on airbnb for San Jose, California and I found many houses. While talking to a lawyer is a good idea, you can always start by asking airbnb's customer service.
Others are doing it is a poor standard to go by. Check with the City on Short Term Rental policy.
Your use of terminology is a bit confusing. If you rent full time, that is your primary residence. You may own a home you previously lived in as your primary residence. Now, it's just a home you own.
As others have posted, the rules change a bit for non-owner occupied. You need different insurance, at the very least. If there is a lender involved, they probably need disclosure from you that you're no longer occupying the residence.
David J Dachtera
"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."
- DJ Benedict
@Derek Lacy and @David Dachtera made the correct observation, then if you rent your home full-time it is NOT your primary residence. Your rental becomes your primary residence. That can affect your property taxes and significantly affects how you file taxes (not necessarily bad). AirBNB will report the income to the IRS, so make sure you file taxes properly. Talk to an accountant. In a nut shell, your old primary residence becomes a full-time rental property that is used 100% for rental. That means all your expenses for the property become deductible, which is good. Your primary residence becomes the place you are renting, so that is the address you put on your taxes as your primary residence. Good luck @Emily Shirk.