How to rent your home for fun and profit

By Miriam Cross
Posted on October 13, 2016

Beth Everett and her husband, Glenn, built a cottage in their backyard in 2014 for their son Jordan to live in when he’s home from college. But while the studio sits empty, visitors to Portland, Ore., can rent the cozy space through Airbnb for $99 a night. Fox Lair, as it’s known, offers heated floors, a small sitting area decked out with guitars and bongos, and plenty of eclectic artwork.

Everett estimates that in 2015 they earned about $9,000 from a steady stream of visitors, which she used to help pay for editing and cover designs for her self-published books, the Lee Harding mystery series.

“It was the easiest money I ever made,” she said. “And it was fun.”

Airbnb wasn’t the first website to help owners, or “hosts,” rent out their homes directly to travelers. But the rental site has made it easy for anyone, in any city, to offer up a couch, a spare room, an in-law suite or the entire house for a short-term rental, generally defined as fewer than 30 days.

“You don’t have to have a six-bedroom house in Florida,” said Joseph DiTomaso, CEO of AllTheRooms.com, a search engine that aggregates both traditional accommodations and short-term rentals. “You can rent out a room while you’re traveling for a week and make money to pay for your trip.”

A plethora of websites compete with Airbnb. The sites typically charge a service fee of at least 3 percent of the rent (and sometimes substantially more), but some lend a hand with the marketing, take care of collecting taxes in some locations, and offer insurance. Airbnb, along with other sites, collects payments from your guests and deducts fees and sometimes taxes before sending the rest to you.

Airbnb. Rents out private rooms or entire structures. The service fee is 3 percent per booking. Airbnb holds payments from guests until after check-in and collects and pays occupancy taxes in certain cities. Property and liability coverage are included at no extra charge. Hosts can impose a security deposit as well.

HomeAway. The site, which also owns VRBO, rents out entire structures only. The service fee starts at 8 percent per booking, or owners can pay a $349 annual fee instead. Homeowners can buy tailored vacation-rental insurance called HomeAway Assure. There is no assistance with taxes. Hosts can impose a security deposit.

FlipKey by TripAdvisor. FlipKey lets you rent out private rooms or entire structures. The service fee is 3 percent per booking, or owners can pay an annual fee that starts at $399. The site holds payments from guests until after check-in. TripAdvisor, which owns other sites as well, collects and pays occupancy taxes in certain cities. No insurance products are available. Hosts can impose a security deposit.