Air BnB – Things to Consider

1. Bad guests
In an ideal world, all guests would be neat, polite and respectful. However renting a room or house on Airbnb can be much like running a hotel, you will always get some people who are never happy.
You must be prepared for the small group of guests who are entitled, rude in exchanges, and unrealistic. Some will expect that you attend their every request 24/7

2. Bad reviews
Reviews are crucial when using and renting via Airbnb. One of the major components of any Airbnb business is customer reviews. While good reviews can help attract new renters, bad reviews can cause the opposite reaction. Either way, the review system is an integral part of the equation since it’s the only way for new renters to learn what your rental experience is actually like.

Something to consider if you’re transitioning a long-term rental into an Airbnb. With a long-term rental, your tenants tour the property ahead of time and know what they’re getting into. With Airbnb, this is not the case.
People all of a sudden feel empowered to critique your design sense, mattress choice, and even cleaning products. Occasionally, even simple choices like these cause renters to leave bad reviews when it’s completely unwarranted.

3. It can be a lot of work
Too many people jump into their new Airbnb business with the false idea they’re going to have it easy. List your Airbnb property for a profit, hire staff to keep it clean in between renters, and you can sit back and collect the money, right?

Wrong, renting a home or even a room can be a lot more work than people realize. Unless you hire out all the grunt work, you’ll be doing laundry, cleaning kitchens, and making beds every few days. Not to mention being responsive to future guests and to your current guests’ needs.
Most of all, be prepared for an array of inconvenient situations. It’s not a matter of “if” they’ll happen, only “when.”

4. Basic logistics
While unruly tenants and late-night calls can put a damper on your experience, sometimes it’s the normal everyday logistics of running an Airbnb that causes the most hassle and stress.
Some of the hardest problems to solve are the ones that should be simple but aren’t. Things like taking out the rubbish can become an issue, Tenants don’t take the rubbish out to the curb and get really upset when there is trash left over from other people.

Then, there are logistics that have to do with tenants themselves — for example, some tenants want to stay a single night but need to check out at 6 p.m., basically they want to pay for one night but get two days, which does not work for same-day turnovers with cleaning.

5. Tax consequences
Especially in the first year, Airbnb hosts are rarely prepared for the tax implications of running their business.
Many Airbnb hosts never set aside money to pay taxes on their Airbnb income. Unfortunately, this can mean owing more in taxes than they planned for. Some hosts are surprised when they see their tax bill.
Also, New Airbnb hosts tend to be confused about what they can write off, so they try to write off personal expenses that have nothing to do with their Airbnb.
Lastly, new Airbnb hosts are typically surprised when they receive a notice mail showing their Airbnb income. Many falsely assumed their Airbnb business was “under the radar” and thus, not subject to taxes. Recently the ATO stipulated that they will have a high focus on Airbnb revenue in the years to come.

 

Obviously, assuming any of these things can be costly. Knowing about them in advance can help you decide whether you really want to have a short-term rental on your property, with your eyes wide open to both the costs and benefits.