Got an extra room to spare? Airbnb could be a great way to get some extra return on that rental investment.
Depending on your lease and local laws, you may be able to make some extra cash by renting out your apartment as an Airbnb host. There are several factors that tenants need to know before listing an apartment on Airbnb.
Can I Airbnb my apartment? 5 steps to find out
1. Check your local laws and zoning regulations
Many local zoning laws restrict or prohibit short-term rental hosting. However, legal restrictions on Airbnb rentals are not uniform and can be confusing.
For example, it’s illegal to rent out New York City apartments for less than 30 days unless you also occupy the property at the same time. In the case of Chicago rentals, Airbnb rentals are allowed only in specific zoning districts. For San Francisco properties, short-term rentals are restricted to a maximum of 90 days per year. Fines vary across different districts but can be as much as $1,500 for the first violation, so it’s really important to understand the rules in your specific area before signing up to be a short-term rental.
Airbnb hosts are required to register their properties in most jurisdictions. The company’s website has a summary of Airbnb legal requirements for major cities, with links for additional information.
2. Review your rental agreement
Leases can vary widely between landlords, especially as it relates to short-term rental hosting. Go through the all-important lease agreement to figure out if you even have permission to pursue this further. Does it say anything about subletting or limiting overnight guests? Some landlords prevent guests from becoming full-time residents without signing a lease by imposing a limitation on the number of nights a guest may stay. Check all the fine print before taking the next step to Airbnb your apartment.
Others may restrict renting out apartments to control noise levels and other disturbances created by short-term tenant stays. Your lease may allow renting out your apartment on Airbnb, but have a provision that requires prior written approval.
3. Get permission from your rental property landlord
Although some people rent on Airbnb without telling their landlord, it’s not a good idea and can get you evicted, not to mention any Airbnb guests on-site at the time. If neighbors complain or your landlord objects to short-term rentals, you could get into a messy situation, quickly.
If possible, sweeten the deal by making it a win-win situation for both you and your landlord. Offer to pay higher rent or share a percentage of the money you earn from Airbnb renters. If you make money by renting out your space to additional tenants, your landlord may be amenable if they earn extra money, too
Be respectful and tell your landlord that you’re exploring the possibility of renting on Airbnb. Speak openly and gauge their openness to the idea. Be flexible, open-minded and honest with your intentions, and you might be able to get on the same page and work something out.
4. Understand insurance and liability requirements
Check if your current renters’ insurance covers short-term rentals. Most policies don’t, and you may need to purchase additional coverage or rely on Airbnb’s Host Guarantee, which may not fully protect you in all situations. It’s important to be fully aware of the risks before listing your apartment.
5. Follow through with registration and compliance
If you receive the green light from your landlord and your lease allows Airbnb, make sure you comply with all local laws. Register your property, pay any required fees, and ensure you’re aware of tax implications. Failure to follow legal steps can lead to penalties, fines, or even eviction.
How to Airbnb your apartment
Once you’ve determined that you can rent your apartment as an Airbnb, it’s time to get your listing online so you can start earning some extra money. Fortunately, creating a listing is straightforward, thanks to Airbnb’s easy-to-use platform.
1. Start your listing
Head to the Airbnb website and click the “Host your home” button at the top of the page. You’ll be prompted to create an account if you don’t already have one, or sign in to your existing account.
2. Provide details about your rental
Now is the time to get specific about what your listing has to offer, so be sure to select “apartment” from the property type dropdown list. Next, you’ll designate the number of beds and bathrooms available to renters, as well as the exact address and any amenities, like a pool or laundry room access. Make sure you communicate with your landlord before offering shared amenities to outside renters.
Be sure to select any amenities that apply from the list provided, so that your listing will be shown to more people. But be totally honest and accurate because a renter can cancel if they find out that an Airbnb apartment isn’t what it’s cracked up to be.
Don’t forget to list other important information for potential guests to review, like local attractions, parking information, whether or not the host will provide common items like toilet paper and more.
3. Name your listing
Although they shouldn’t, people really do judge a book by its cover. So, name your Airbnb apartment listing with memorable, fun adjectives that speak to the spirit of the place and the area. This is also where you’ll insert an image of yourself looking like a welcoming host.
4. Paint a picture
Everyone wants to physically see images of the actual property, so at this time, you’ll add high-quality photos of all relevant rooms. Try to make them as clean and attractive as possible, especially the first three because they’ll dominate your Airbnb apartment listing.
5. Choose booking settings
Now it’s time to get down to the nitty-gritty of booking. Airbnb has standard guest requirements, but at this point, you can add any extras that you and your landlord decided on. This includes house rules, identification requirements and so on. At this point, you can also denote other bits of info about the property, such as whether an elevator or on-site parking is available.
6. Create your calendar
Just because you’re renting out your apartment on Airbnb doesn’t mean that you have to offer it up all the time. You can opt for select dates, block off periods when relatives come to visit or leave the calendar wide open — whatever works best for you. This is also when you specify how far ahead a potential guest can book and how long they can stay.
7. Pick your price
You can set your own price points, or take advantage of the Airbnb pricing tool. This handy function updates prices as supply and demand fluctuate for similar rentals in your area. They’ll also adjust based on other factors as needed, like tourism upticks and big holidays in your area. You’ll set your own base price regardless, so make sure it’s in line with similar properties nearby.
8. Press publish
Once you’re happy with the Airbnb apartment listing and are sure that it’s an accurate representation of the property, it’s time to invite the world (or maybe just a few people) in!
Moving forward, make sure to clearly communicate fees, expectations and rules to renters, and keep an open dialogue with your landlord to make sure everything is satisfactory on that end, as well.
