Can you Airbnb your primary residence & should you do it?

Renting your primary residence on Airbnb could be a game-changer for your finances—but is it right for you? Here's what you need to know. 

This comprehensive guide on how to Airbnb your house covers:

• Can you legally Airbnb your primary residence?
• Why consider Airbnb-ing your primary residence?
• Challenges and risks of renting out your primary residence
• Should you Airbnb your primary residence?
• Tips for successfully renting out your primary residence
• What do people think?
• Is Airbnb-ing your primary residence right for you?
• FAQs

Can you legally Airbnb your primary residence?

Before you list your home on Airbnb, the first thing you need to check is whether or not it’s even legal to rent out your primary residence in your location. The rules can vary widely depending on where you live. So, can you actually Airbnb your house? Let’s look at the legal side of things.

Common legal requirements

While Airbnb might seem like a simple way to make extra money, it's important to understand that different locations have different laws regarding short-term rentals.

• Zoning laws and short-term rental permits: many cities (in the US) require homeowners to get a permit to rent out their homes on platforms like Airbnb. Zoning laws might limit where you can rent out your home, especially in residential areas.
  
  
• HOA (Homeowners Association) or Condo Board restrictions: if you live in a community governed by a homeowners association (HOA) or in a condo building, they may have their own set of rules. Some might prohibit short-term rentals altogether, while others may allow them with certain restrictions.
  
  
• Tax implications: renting out your home also means you may be subject to certain taxes. This could include occupancy taxes, which are charged to guests, or income taxes, which you’ll need to report to your respective country’s tax office (e.g. HMRC in the UK, or the IRS in the US). Be sure to research these taxes in your area and keep track of your income from Airbnb.

How to check local rules

So, how do you figure out the rules in your area? Here are some steps you can take:

• Local government websites: Your city or county’s website should have information on whether short-term rentals are allowed and what permits or licenses you might need.
  
  
• Airbnb tools: Airbnb has a tool that can help you check the rules for short-term rentals in your area. It's a good starting point, but always double-check with local authorities.
  
  
• Consulting a legal expert: if you’re not sure about the rules or need help navigating the legalities, it might be worth consulting a lawyer who specialises in property or short-term rentals. They can help you stay compliant with local laws.

Why consider Airbnb-ing your primary residence?

Now that we've talked about the legal stuff, let’s move on to the reasons you might want to Airbnb your home. While it’s not for everyone, there are some great benefits that could make it a win-win for both you and your guests.

Financial benefits

One of the most obvious reasons to rent out your home on Airbnb is the extra income. If you have a spare room or can leave your house vacant for a while, you could easily make money by hosting guests. Here’s how:

• Offset your mortgage or living expenses: if you have a large mortgage or struggle with monthly bills, Airbnb income can help you cover those costs. Some homeowners even use the money to pay off their mortgage faster.
  
  
• Earn extra income while travelling: if you’re going on holiday, renting out your home can turn your time away into a profitable opportunity. Plus, you’ll have peace of mind knowing your home is in good hands while you're away.
  
  
• Flexible income: whether you want to host on weekends, during holidays, or year-round, Airbnb gives you the flexibility to choose how often you rent out your home. This allows you to plan your hosting schedule around your own needs.

Flexibility and control

One of the best parts about being an Airbnb host is the level of control you have over your hosting experience. Here's what you can expect:

• Set your own schedule: unlike a regular rental, where tenants have a long-term lease, Airbnb lets you decide when your home is available. You can rent out your house when it’s convenient for you, whether that’s part-time, seasonally, or just when you’re out of town.
  
  
• Choose your guests: Airbnb allows you to screen potential guests. You can review their profiles, see their ratings from previous hosts, and even set certain guest requirements. If you’re not comfortable with someone, you can decline their booking.
  
  
• Customise your experience: you can decide whether to rent out the whole house, a guest room, or just part of your home. Plus, you have the flexibility to set your own rules and decide what kind of guests you want to host.

Challenges and risks of renting out your primary residence

While there are many benefits to renting out your primary residence, it’s also important to consider the challenges and risks involved.

Lifestyle considerations

Renting out your primary home can have a significant impact on your lifestyle. Think about how you feel about having strangers in your personal space.

• Privacy concerns: if you’re someone who values privacy, having guests come and go might make you feel uncomfortable. Even if you're only renting out a room, it can feel like you’re giving up part of your personal space.
  
  
• Impact on your routine: hosting guests means making your home available on their schedule. This might disrupt your daily routine, especially if you have to clean or prepare your space for new guests frequently.

Risks involved

There are some risks involved in renting out your home, and it’s important to be prepared for the potential downsides.

• Damage to property or theft: even with careful screening, there’s always a small risk of property damage or theft. It’s important to make sure your home is properly insured for short-term rentals.
  
  
• Conflicts with neighbours: not everyone loves the idea of Airbnb rentals in their neighbourhood. If you're renting out a portion of your home or hosting a lot of guests, it could lead to tensions with neighbors or complaints from your homeowners association (HOA).
  
  
• Safety and liability: you are responsible for ensuring your home is safe for guests. This includes things like smoke detectors, secure locks, and clear emergency exits. In case of an accident, you could be held liable, so make sure you understand Airbnb's host protection policies.

Should you Airbnb your primary residence?

So, should you rent out your home on Airbnb? It’s a personal decision, and there are several things you’ll want to weigh up before diving in. Let’s explore some factors to consider… 

Key questions to ask yourself

Before you take the leap, ask yourself these important questions:

• Do you understand the legal and financial obligations? Renting out your home requires more than just posting a listing. Make sure you’re aware of all the local laws, taxes, and responsibilities involved in hosting.
  
  
• Are you comfortable with strangers in your home? If you value your privacy or feel uneasy about sharing your space, hosting may not be the best choice.
  
  
• Can you handle the responsibilities of hosting? Hosting involves cleaning, communicating with guests, and sometimes dealing with issues. If you’re ready to take on these responsibilities, Airbnb hosting might be a good fit for you.
  
  

Tips for successfully renting out your primary residence

If you’ve decided to move forward with listing your home on Airbnb, here are some tips to help you get started and ensure a successful hosting experience.

Preparing your home for guests

Make sure your home is ready to welcome guests. Here are some tips:

• Declutter and secure valuables: take down personal items and anything valuable to prevent theft or damage. This also helps create more space for guests to feel comfortable.
  
  
• Create a welcoming guest space: Ensure the guest area is clean, cosy, and well-organised. Little touches like fresh towels, toiletries, and comfy bedding can go a long way. Learn more about what to include with our Airbnb checklist.

Setting boundaries and expectations

Clear communication with your guests is key. Here’s how to set expectations:

• Create a digital guidebook: this should include things like house rules, check-in/check-out procedures, and how to use appliances. You can also include a comprehensive local area guide showing guests your favourite local spots.

• Communicate clearly: be available to answer any questions your guests may have before and during their stay. Quick, friendly communication will make their experience more enjoyable.

Optimising your Airbnb listing

To attract the best guests, you need to stand out on Airbnb. Here’s how:

• Use high-quality photos: your photos should show off your home in the best light. Consider hiring a professional photographer if necessary.
  
  
• Write a compelling description: highlight what makes your space unique and why guests will love staying there.
  
  
• Set competitive pricing: research other listings in your area to determine a competitive price while ensuring you get a good return.

Learn all this and more with our blog on how to market a short-term rental.

What do people think?

Here are some real-life experiences from Airbnb hosts:

• "My husband and I leave the state for a couple of months a year to stay at our second home, and rent out our primary residence during that time. It is a condo with large, walk-in closets. We lock up our belongings in one of the closets, except the kitchen pots, pans and utensils. We like leaving the guests with empty drawers and no clutter. We do leave puzzles, books, wall art, and a few other things we feel our guests might enjoy."  - Revolutionary_One_45, Reddit user

• "We put away anything that’s not attached to the house and/or irreplaceable (as far as personal items go). We make it clear this is our house and we have a very clear expectation of rules, etc. Folks have left us gifts, asked to buy our house, and been very respectful.” - TheBroski3, Reddit user

• “We only list our primary property and have for the last 5 years. Absolutely no problems whatsoever. Guests enjoy that they have access to a home with many amenities. We have a 4 bedroom home and keep one room locked.” - biallasamantha, Reddit user

Final thoughts: is Airbnb-ing your primary residence right for you?

In conclusion, deciding whether or not to Airbnb your primary residence requires careful thought and planning. You need to consider the legal requirements, potential risks, and how comfortable you are with sharing your space. 

If the financial benefits and flexibility sound appealing, and you’re prepared to take on the responsibilities of hosting, Airbnb can be a rewarding experience. But it’s not for everyone, so take your time and weigh the pros and cons before making your decision.

Don’t forget, when you Airbnb your home, you can streamline the entire process with a Touch Stay digital guidebook. Start your 14-day free trial today!

FAQs