Should You Rent Out Your Calgary Home on Airbnb?
Tuesday, May 12th, 2015
Suddenly a lot more people know what Airbnb is.
The company has been in the news of late as a Calgary couple rented out their home using the online service for some extra cash, only to return to find it had been completely trashed in what police called a “drug-induced orgy.” Damages to the King family’s northwest property are now estimated at $150,000.
Airbnb offers a “$1,000,000 Host Guarantee”, reimbursing up to one million dollars in repair bills to homeowners whose properties have been damaged by Airbnb customers, and the company has stated they will pay to have these Calgarian victims made whole again. But nothing can take away the memories of a family home decimated and disrespected so fully.
So, is it worth it to rent out your home on Airbnb? Like most means of earning extra income, there are risks and rewards. Apartments in Calgary start at around $65 per night, more depending on location and amenities (some homes can fetch $800 per night), and there are nearly 900 rentals listed in our city on Airbnb’s site; during Stampede, rates can quadruple. The vast majority of people who rent out their property have no problems at all, especially since renters must register with the service and both renters and homeowners can be reviewed, making them at least somewhat trackable should anything happen. Further, many choose to simply rent out a single room in their primary residence, which allows them to meet new people from around the world as tenants.
The first risk factor is self evident given recent events: the trashed house in the news was rented using stolen credit cards, and two weeks later no culprit has been nabbed. While the host guarantee means victimized homeowners won’t be out of pocket for long, irreplaceable items are, when destroyed, irreplaceable. Also important to know: if you’re a renter, it may be against your lease agreement to sublet your apartment. Review your agreement and check with your landlord before listing your property.
Many advise that the ideal method to use Airbnb for extra cash is to rent out a second home, keeping your primary residence for you and your family. Otherwise, think about the worst case scenario – basically what happened to the Kings – and see if it’s something from which you could move on with no lasting scars.
Do you have home ownership questions? Contact me!
