Summary: Airbnb is a 21st-century technology company that allows residents to list and rent their homes on a night-by-night basis, usually as an alternative to a hotel.
Airbnb rentals are similar to rental properties, but they are confined to residential properties and usually only available for short-term periods. Unlike traditional rentals, Airbnb lets you rent out a portion of your personal home, your entire personal home while you’re not present (such as when you’re on vacation) or the entirety of a second home that you own. Property owners earn money by renting their property by the night, which can provide regular or irregular cash flow, depending on the demand of the property within its specific market. Property owners are responsible for furnishing and maintaining the home for renters.
Airbnb rentals require much less expertise and supervision than traditional rentals for several reasons. Airbnb itself facilitates the booking of the rental property and creates the contract agreement between the property owner and renter. Because Airbnb manages several components of the rental process, Airbnb rental properties can be a part-time job or side hustle.
While Airbnb rentals can be a lucrative solution to the spare bedroom in your home, before listing, make sure that short-term rentals are allowed in your area. Homeowner associations have the power to ban short-term rentals, and in some cities, such as New York, there are existing bans against types of short-term rentals.