Renting Your Home on Airbnb? What You Need to Know.

Airbnb is huge.

In fact, it’s so popular that hotels are dropping their prices just to compete.

In case you’re unfamiliar with the service, it’s a website that connects people looking to list, find, and rent lodging. Many of those with luxury St. George homes are using this service as a side hustle while on vacation.

Families touring southern Utah are skipping the hotel suites and looking to rent private homes instead.

If you’re thinking about renting your St. George custom home, here’s some advice before you take the plunge.

Will my homeowner’s insurance cover renting?

Depends.

Some insurance companies cover a few short-term rentals, but too many visits in a row may require you to purchase a business policy. Airbnb relieves some of this headache by offering insurance to protect you from injured guest lawsuits or home damage.

Will this affect my taxes?

Yes.

If you’re planning on renting your home out for more than 14 days a year, you’ll need to report the extra income on your taxes. This is due to the IRS requiring Airbnb to report the extra income you’re making through their service. Because it’s your personal home, your options for taking deductions will be limited.

What do I have to pay to use Airbnb?

3%.

You owe Airbnb 3% of the total rental price every time you rent out your home. Most users agree it’s a pretty fair price to pay.