Saw this on the news, some people in the bay area are making $1000+ per month just by renting out a spare room like a hotel/B&B. One guy rents out an AIR MATTRESS in his living room and people are paying $89 a night!
Whats nice is you dont need a permanent roomate..you can host when you want to, and have your place all to yourself when you want to, You set when your place is available.
I know theres lots of FWF'ers here living in expensive areas where they can command high rates (NYC SF etc). Plus for you younger folks in offcampus housing, you might be allowed to have overnight guests, but not additional roomates, so it might be a way to offset rent costs
As far as the Cleanliness line that Avery lists, and the review below, we found the house to be not clean at all, and absolutely not something "mom would be proud of". Especially the bathroom.
I'm pretty sure nobody would find my bathroom clean enough. So I'm thinking this isn't for me.
What if Mr. Stay-in-your-home falls and breaks a femur in your bathroom? You homeowners insurance will not pay for his medical since you are running a b&b or just a b. Bad idea IMO.
Lots of local governments have occupancy taxes that are placed on short term rentals. In areas where vacation rental properties are taking a big bite out of the hotel industry it is more common for the government to go after the property owners for their taxes. So, before you start doing this I'd suggest you talk with a lawyer and an accountant to determine exactly what the rules are and how you can comply (or get around*) them.
* I say "get around" because I believe there is some exception that allows you to lease your house out for a certain number of days in the year without declaring the income made during that lease... not sure exactly what it its... I'm neither a lawyer or accountant so instead of blindly believing what I've said look it up for yourself or talk to an authority on the subject.
No thanks. The risk that you take on by doing this does not outweigh the amount you receive in rent.
Rathipon
Greedy Member
posted: Nov. 10, 2009 @ 3:15p
lgyeresi said: No thanks. The risk that you take on by doing this does not outweigh the amount you receive in rent.
Amen. The $89 you take for one night can turn into a multi-month eviction proceeding in certain landlord unfriendly jurisdictions.
pj737
Senior Member
posted: Nov. 10, 2009 @ 3:27p
Here in Honolulu, if you want to rent for less than 30 days (legally) your property must be zoned commercial (i.e. hotel, vacation resort) or if you're in a residential zoned area, you need a special BnB license which is very difficult to get. Then you get whacked by a transient accommodation tax (8.25%) in addition to general excise tax (4.72%) and if you want your property rezoned to commercial (which is difficult but not impossible), you get left paying the commercial property tax - which is FOUR times the residential rate. As a result of all these taxes, many people rent out short term illegally by not reporting any of the income and they make a nice profit doing so. I have a couple SFH properties where I rent out rooms separately, but I stay above board and keep all my rentals to 6-month minimums.
people do this for free using globalfreeloader etc
It is not as strange as people may think ...people had the same apprehension about eBay too back in the day (you mean i send money to a stranger and hope they mail me something???)
I think this will explode in popularity both on the host and traveler side as people look to make extra cash and pay less than a hotel
Look at many of the places for rent they are either young professionals or artistic types, not people concerned with financial risks /liability etc
TechJosh said: Lots of local governments have occupancy taxes that are placed on short term rentals. In areas where vacation rental properties are taking a big bite out of the hotel industry it is more common for the government to go after the property owners for their taxes. So, before you start doing this I'd suggest you talk with a lawyer and an accountant to determine exactly what the rules are and how you can comply (or get around*) them.
* I say "get around" because I believe there is some exception that allows you to lease your house out for a certain number of days in the year without declaring the income made during that lease... not sure exactly what it its... I'm neither a lawyer or accountant so instead of blindly believing what I've said look it up for yourself or talk to an authority on the subject.Generally, it is 15 days or fewer days rented during the calendar year but that is for it to be exempt from income tax. The hotel, B&B, and other state and local taxes have their own rules. Some states (like HI) charges tax on rentals even for long term rentals (which is hard to even comprehend in CA).
louieeG
Senior Member
posted: Nov. 10, 2009 @ 3:50p
I don't see what the big deal is. Make sure to collect rent up front. Don't leave valuables in the rented area. Rent to someone smaller than you.
DShaw94
Member
posted: Nov. 10, 2009 @ 3:54p
Some people may have the guts to try this out or even like it for a little while, but like my grandfather used to say:
"It's all fine and dandy until someone sh*ts the bed, then all bets are off".
SUCKISSTAPLES said: people do this for free using globalfreeloader etc
It is not as strange as people may think ...people had the same apprehension about eBay too back in the day (you mean i send money to a stranger and hope they mail me something???)
I think this will explode in popularity both on the host and traveler side as people look to make extra cash and pay less than a hotel
Look at many of the places for rent they are either young professionals or artistic types, not people concerned with financial risks /liability etcI see the allure of turning an extra room into a revenue stream and it is sad that so much of our resources are wasted by all the things we have that we don't use but... this seems to carry a lot of the same characteristics/risks of hitchhiking that make it so most people are not willing to do it due to the potential risks.
I would need some method of being able to trust and rate a potential renter and they would need the same of me. Is there a good way to do this?
eBay and craigslist aren't so bad because the actual interaction between people can be limited and controlled. And, generally, the transactions are either small enough that it is okay to take some financial risk or they are big enough that a professional can be hired to provide assurance (like a mechanic).
buckin said: Do you need to tell your home insurer if you plan to do this? Will they cover if some renter broke a leg in the yard?It is probably not covered and they will definitely fight the claim if your insurer realizes that you are renting out your space.
at its essence its either a guest or room mate or tenant situation, depending on if monies are charged and if you also occupy
The first two are covered under a standard HO policy ( if you live there too) and the third is covered by a dwelling fire policy (if you dont live there and you rent the place exclusively)
The fancy new fangled way of finding people seems to muddy the basic transaction
XNARG: I logged in just to give you props. hilarous!!
highmktgoods
Senior Member
posted: Nov. 10, 2009 @ 7:26p
The chances of a rape or attack upon a guest go down when you take certain precautions. For one thing, you know where they live. Second, just make sure to inform the host that several people know you're staying there, etc.
BetterBrainBureau
Member
posted: Nov. 10, 2009 @ 7:29p
Guys, you are arguing like you have just discovered the wheel of bread, or the slice of lightbulb.
Craigslist has had this type of ads for a long time. Many people in NYC, San Fran, etc, rent out their apartment for short term, or even room. Many young professionals who can not afford an entire apt by themselves, usually rent an apt, and rent out one room periodically, on a short and medium term basis.
highmktgoods said: The chances of a rape or attack upon a guest go down when you take certain precautions. For one thing, you know where they live. Second, just make sure to inform the host that several people know you're staying there, etc.Picking up a hitchhiker can end as badly as being a hitchhiker....
redpoint5
Member
posted: Nov. 10, 2009 @ 9:19p
High risk often has the potential for high reward. Renting to strangers is not for everyone, but it is worthwhile to some. I wouldn't do this if I had a family, but since I don't, this is something I consider doing.
VerbalK said: Hope you like bedbugs.
Not everyone lives in NY.
mlayu
Senior Member
posted: Nov. 10, 2009 @ 10:52p
Rent your personal home for less than 15 days, and you don't have to report the income as far as the federal government concern per Publication 527.
"Rental of property also used as your home. If you rent property that you also use as your home and you rent it fewer than 15 days during the tax year, do not include the rent you receive in your income and do not deduct rental expenses. However, you can deduct on Schedule A (Form 1040) the interest, taxes, and casualty and theft losses that are allowed for nonrental property."
BetterBrainBureau said: Guys, you are arguing like you have just discovered the wheel of bread, or the slice of lightbulb.
Craigslist has had this type of ads for a long time. Many people in NYC, San Fran, etc, rent out their apartment for short term, or even room. Many young professionals who can not afford an entire apt by themselves, usually rent an apt, and rent out one room periodically, on a short and medium term basis.exactly
I ithink its the whole internet thing that has people leery but this is absolutely no different than when you met someone at a college party and let them crash in your room, or foreign exchange programs, or shared hosteling etc. The difference is you actually get paid
In fact because a market rate is being charged, it weeds out the majority of hitchiker/psycho types who would never pay in advance and reveal their id....anytime you offer something for free you get your share of weirdos, but that drops drastically when payment is involved
SUCKISSTAPLES said: BetterBrainBureau said: Guys, you are arguing like you have just discovered the wheel of bread, or the slice of lightbulb.
Craigslist has had this type of ads for a long time. Many people in NYC, San Fran, etc, rent out their apartment for short term, or even room. Many young professionals who can not afford an entire apt by themselves, usually rent an apt, and rent out one room periodically, on a short and medium term basis.exactly
I ithink its the whole internet thing that has people leery but this is absolutely no different than when you met someone at a college party and let them crash in your room, or foreign exchange programs, or shared hosteling etc. The difference is you actually get paid
In fact because a market rate is being charged, it weeds out the majority of hitchiker/psycho types who would never pay in advance and reveal their id....anytime you offer something for free you get your share of weirdos, but that drops drastically when payment is involved
The vast majority of couch surfers are not weird, more likely young and adventuresome, plus even if they are weird they put on their best behavior for a host. Besides its good to meet people that u would not otherwise run into in your normal often mundane routine life....
Otherwise I agree, this is a good thing, I just hope it does not undermine the spirit of CS or global free loaders etc...
Most posters here sound like people who watch WAY TO MUCH local news, Listen up, to live in constant fear is the worst kind of poverty of existence.
It's common to rent out your place short-term where I live for Mardi Gras, Halloween, etc. Of course, we never leave during the holidays so it doesn't come up.
Many people broker house swaps on Craigslist where no money changes hands.
Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.
Members of our community may attach files to a post in accordance with the User Agreement. FatWallet is not responsible for the content, accuracy, completeness or validity of any information contained in any attached file. Files have *not* been scanned for viruses. Be especially wary of Excel files which may contain malicious content.
