Pro: Some expenses are tax-deductibleīecause you manage your property as a short-term rental business, a lot of expenses can be deducted from your taxes. We don’t say this to scare you away, it’s just important to know what to expect before jumping into your Airbnb business and be financially prepared for these expenses. All of these costs would be assumed by a long-term tenant if you didn’t choose the short-term vacation rental route. You have to pay for things like utilities, wifi, decor, regular cleanings, maintenance, and potentially hiring additional staff members. Managing an Airbnb property comes at a cost. In fact, many people invest in an Airbnb property as a “side hustle” and end up taking it on as their full-time job. Passive income is a great way to boost your income on top of your regular job or replace your income altogether. An Airbnb property is considered passive income because you earn money through bookings and though it does require some work on your part, the amount of work you put in is not directly related to how much you earn. A traditional nine to five job is not passive income because the amount you earn is directly related to how much you work. Passive income is defined as a revenue stream that doesn’t require you to be actively involved to make a profit. The most obvious and probably most attractive benefit of investing in an Airbnb property is the potential for passive income. Below are some of the pros and cons to consider when you first set out to become an Airbnb host. Like any type of investment, there are pros and cons to investing in Airbnb properties and it’s important to be aware of these risks and benefits before committing. Pros and cons of investing in Airbnb properties Whatever your career and income situation may be, there is a way to make Airbnb investing work for everyone. Though most Airbnb hosts start managing a property as a part-time job, many grow to own multiple properties they manage full-time. With four million Airbnb hosts worldwide, short-term vacation rental properties have become an extremely popular and fruitful form of passive income. Put simply, an “Airbnb investment” is when you purchase a property with the intention of renting it to short-term tenants through Airbnb for a profit. Should you invest in Airbnb properties? What does “Airbnb investment” mean?
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