Platforms such as Airbnb have made it easy for homeowners to temporarily rent out unused spaces. But should you rent out rooms in your home for extra revenue? Let’s consider a few of the pros and cons of renting out the empty rooms in your house.
Pro: You Have Control When You Rent Rooms through Airbnb
One great thing about platforms like Airbnb is you have control. You can open up the space for rent when you want to.
Do you want to keep the place blocked off during weekdays so you can focus on work or school without worrying about the guest? You can do that.
Or maybe you’re the opposite, where you want your home to yourself all weekend meaning you keep weekends blocked off but are open to guests during the week. You can do that too.
The platform is flexible and caters to your wants and needs. That’s different from having a full-time renter in your home.
Pro: Short Term Rentals Mean Less Damage to the Home
A full-time renter can cause a lot of damage to your home – especially if you aren’t around. They may not be malicious about it; they’re just around all the time. They’re home anytime they aren’t out at work or school – especially these days, thanks to COVID and quarantines.
A nice thing about short term rentals is your home will generally accumulate fewer damages. The renters aren’t around as much. They may even just be there for a place to rest their head for the night and leave in the morning.
Pro: Renting Out a Room Short Term = More Money for Less Time
Let’s compare two scenarios.
Scenario 1: You rent out a room in your home for $600 a month. Assuming your renter is around for about 12 hours a day, he or she will have spent 360 hours in the house in one month.
Scenario 2: You rent out a room for 10 nights on Airbnb and net $600. Assuming the renter is around for the same 12 hours a day, he or she will have spent around 120 hours in the house.
In Scenario 2 you’re making a lot more money per hour!
Con: Less Privacy
One obvious downside to renting out a room in your house is that your life is a bit less private. You essentially have a complete stranger sleeping in the room next to you.
Is there a rigorous system in place with Airbnb to prevent anyone dangerous from staying over? Yes.
But in general, our homes are our safe places. We recharge at home by doing whatever we want to do. If you have a guest over, it may be harder for you to feel comfortable settling in at night.
Con: Administration Time and Costs
Another downside is the time it takes you to manage the rental. Below are some of the tasks you will have to do regularly.
- Respond to messages from potential renters
- Send information to guests on how to get in, your rules, etc.
- Clean up after guests leave (or hire a cleaner)
- Airbnb rental taxes
This may not be a deal-breaker, but it’s something to be aware of.
Should you rent out rooms on Airbnb for extra income? It’s up to you. There are certainly some good things about it, but some cons as well. The same goes with evaluating different mortgage options – each has its pros and cons. For some guidance on your options, send us an email at Team@RyanGrantTeam.com and we’ll be in touch with you ASAP to help.