Renting your property short-term is a great source of passive income, but if you don’t know the rules and regulations of Airbnb and that of your city, it can be more of a hassle than it’s worth.
Here are five things to consider before renting your apartment on Airbnb.
1. Tax Regulations and Renting
In Denmark, you can earn tax-free earnings up to 24, 000dkk. After that, all income thereafter must be claimed as personal income.
Currently, there are speculated new regulations that may be coming into the Danish Airbnb market. Such talks about having restricted number of days that you will be able to rent. However, these are not yet set in stone.
2. Home associations
If you are apart of a home association, you must consider what their rules might be about having your property become a short-term rental. Do they encourage Airbnb activity? Are your neighbors willing to have an open discussion about it? It’s best to figure this out at the beginning, so there are no problems later down the line.
You are essentially trusting your home to complete strangers. It is a little nerve-wracking, to say the least. Insurance is a good fallback to have. Does your home insurance cover short-term rental possibilities? If not, Airbnb has Host Protection Insurance. This insurance provides liability insurance up to 1 million USD in case of third-party claims of bodily injury or property damage. Conditions and limitations may apply. Having this insurance can help you feel a little safer with your home.
*HostMinded has partnered with Danish Insurance company Tryg for hosts in Copenhagen. To give you extra piece of mind. HostMinded Services
In Copenhagen alone, there are over 20,000 listings on Airbnb, 80% of those being entire homes. Competition is high. Success is based on standout listings and great reviews. Even so far as improving bedding, linens and purchasing some home upgrades. Once you make the decision to improve these areas you can see your listing rise above the rest.
5. The Amount of Work it Takes
Being a host on Airbnb is more than just greeting guests and having a clean home. To get the best review, you must give the guest the best experience. Great communication before, during and after. Having your home spotless, with enough bedding and linens, and everything in working order all contribute to getting that 5-star review. It takes time but well worth it in the end.