Renting Out a Location
Generally speaking, hotels owned the rental market share for vacation stays and work trips sector. Sites such as Airbnb, VRBO, and FlipKey among others, have made it more accessible for the public to offer their locations for rent. This allows you visibility to those seeking to find a place to stay and a structured payment retrieval method. These companies do charge fees to participate, but the goal of the transaction is to net you a benefit.
The nightly rate is set by the loaner. However, the rate should be based on ratings, rental space characteristics, and availability. The annual fee could be negated by the amount of days you plan to rent the property out depending on the nightly rate. Each site has its own rules regarding rental deposits. You typically are permitted to accept or deny rental requests. The judgements you make on who to rent to could affect your ratings in more ways than you believe. A lack of approvals could restrict your income, whereas a relaxed approval method could risk the property rental value. Expenses should be expected regardless. Typical expenses include but are not limited to: cleaning, repairs, and decorations.
Renting Out a Vehicle
Sites such as Turo are opening the ability for a person to rent their vehicle to the public. Renting a vehicle out to a stranger carries many risks such as theft, insurance, or legal. There are legal discussions at the state levels and it is key to review the legal environment before participating. Benefits include receiving funds to offset costs of ownership. Fees and the possibility of income greatly depends on the vehicle characteristics.
There are risks and rewards to everything you do in life. Speak with your financial professional to evaluate if renting your property may be beneficial to you. Everyone’s tax situation is different. Before acting, we recommend consulting with your tax professional.
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