Summer holidays seem to cost a lot. If you’ve got kids or a big social network, they cost even more.
First, you’ve got Christmas, then New Year, hopefully, holidays somewhere in there too. So it’s often a time when we’re thinking about how we can be making some money rather than spending it.
Renting out your home or spare room through AirBnB or similar sites is a great way to earn some extra cash, but there are some things you should take into consideration before you list your property.
- The biggest pro of all is the extra income that you can generate. Check out similar properties in your neighbourhood to see just how much they’re charging so you know your pricing will be competitive.
- The second biggest pro is the clean out that you need to have to make space before the guests arrive and to present your home in the best possible light. Unless your home is huge, it’s difficult to be hoarding a heap of stuff if people are going to have access to your wardrobes, linen press, pantry and cupboards. The last thing you want to be reading on a review of your home is that it was messy and cluttered.
- Finally, it’s a great way to welcome guests to the way you live in your local neighbourhood and that’s a pretty awesome thing to be able to do.
- Make sure it’s allowed – by your council, and, if you’re in an apartment or strata complex, by your Body Corporate. And, if you’re in a rental, definitely run it by your property manager.
- The income you earn is taxable income, so make sure you declare it on your next tax return and take the cost of that into consideration when you’re doing your sums.
- Check with your accountant as to whether generating income from your home will impact you with Capital Gains Tax when you sell your home.
- Check that your insurance covers you for rental guests.
- The risk of having a tenant cause damage or mayhem. That’s no fun at all!
- The clean up – although the cleaning fee you charge should cover the cleaning after the guests have left.
Renting out your home is a great way to put it to work and generate additional income… just make sure you go in with your eyes wide open.