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You should know if youre considering listing your home as an Airbnb as a viableside gig.
Here are where experts say youre better off not listing your home as an Airbnb.
However, Eric Preston, the CEO ofAgent Launch, said that might not be a great idea.
California is generally viewed by many investors as a weak market to own an Airbnb.
San Francisco, in particular, has high initial and operating costs.
Furthermore,only permanent residentsare allowed to engage in short-term rentals.
Thats certainly the case in Des Moines.
Des Moines makes the list because itsshort-term rental industryis wrapped in red tape.
For short-term rentals in Des Moines, you better get arental certificate and approvalfrom the citys board of adjustment.
You must then operate your short-term rental for five years before legally securing a license.
Unfortunately, if youre trying to profit off the influx of visitors, youre in for a rude awakening.
Portland has historically been a competitive market for Airbnb and is considered one of the stricter cities.
Preston added that you cant make money off your rental all year long.
San Jose hasinflexible zoning requirementsfor short-term rentals.
Preston added that youll also need a business license and to pay taxes.
Two of the taxes youll have to pay are theTransient Occupancy Taxesat a combined total of about 10%.
Austin recently passed an ordinance banning short-term rentals in residential neighborhoods.
For those still operating, the threat of hefty fines and potential legal issues make the city unfavorable.
Nevertheless, it could complicate some homeowners plans going forward.
Friedson said the citys rules for short-term rentals can cost homeowners more than its worth.
The confusing regulations and limits significantly cut potential profits, Friedson said.
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