Short-Term Rental Reality Check: Phoenix Media Taps CEO Elizabeth Hale to Break Down Challenges of Renting Out Your Home
February 17, 2023
Many Arizonans see easy money when they think about renting out their home or spare room on short-term rental platforms like Airbnb. But the reality is far more complex than they may think. Elizabeth Hale, CEO and founder of eeCPA, recently explained the often-overlooked variables and challenges to find success with short-term rentals in articles for several Phoenix-area media outlets.
From tax implications and upfront costs to the time commitment required, short-term rentals aren’t as simple as people believe. Tax savings and deductions are limited and highly specific. For example, owners can only deduct 20% of their furnishing budgets and the IRS limits the number of days owners can stay in the home and still deduct expenses. It’s important to understand these limitations and plan accordingly.
Additionally, operating a short-term rental isn’t as passive a side hustle as some may think. Vacancy rates run around 70%, meaning owners must remain engaged to successfully manage bookings and limit the number of vacant days.
Despite the costs in time, taxes and expenses, renting your home or spare room on a short-term basis can prove lucrative, if done right. If you need help getting started, eeCPA can provide the guidance you need to set yourself up for long-term success or explore alternate opportunities that will work harder to meet your goals.
Read Elizabeth’s articles on short-term rentals in: