Airbnb is an internet online platform created specifically to link people that are willing to hire out their homes with others who need accommodations in that environment. The Airbnb service currently covers over 81,000 cities and approximately 191 countries around the globe. This company gets its name from “air mattress B&B.
For homeowners, participating in Airbnb may be a good way to make some money from their property. However with the risk that guests who use the property might do damage to it. For the guests, on the other hand, the advantage of using the service is relatively inexpensive housing. But with the danger that the chosen property won’t be as appealing as portrayed by the listing.
This service helps travelers manage money as they will easily book an Airbnb apartment for fewer than the worth of a hotel room. Its primary risk to the customer is that the property they get via Airbnb might not live up to their expectations (which is usually what appears in its listing). The number 1 risk to hosts is that their guests may do some severe damage to their houses.
Benefits of Airbnb
Here are some advantages of this service:
Wide Selection: The hosts on Airbnb list a good range of properties at different prices of single rooms, apartments, etc. counting on your budget.
Free Listings: Hosts don’t need to pay any money to the Airbnb company to list their properties. Property listings can include photographs with captions, written descriptions, and a user profile that permits potential guests to understand a little about their hosts.
With Airbnb Hosts Can Set Their Own Price: The company doesn’t fix the costs of properties they feature. It’s wholly left to both hosts to settle on how much they need to charge per night, week, or month.
Customizable Searches: Guests can run research on the Airbnb database not only by location and date, but by kind of property, price, amenities, and even the language of the host. They will also include keywords (like “close to the Louvre”) to narrow their search further.
Additional Services: Within the past few years, Airbnb has expanded the services it offers to feature experiences and restaurants. Other than a list of accessible apartments for the dates, they decide to travel, visitors searching by location will be able to view the list of experiences, like sightseeing and classes offered by local Airbnb hosts. There also are restaurant listings that include reviews from Airbnb hosts.
Protections for Guests and Hosts: As how to protect the guests, this service retains custody of the guest’s payment for twenty-four hours after they check-in before finally releasing the funds to the host. For hosts, it features a Host Guarantee program which provides protection for up to $1,000,000 in damages to covered host property within the rare event of damage by guest, in eligible countries.
The Disadvantages of Airbnb
What You See might not Be What You Get: Like many online transactions that involve buying and selling or renting, what you see isn’t always what you get. Booking accommodations with this platform is different from walking into a significant hotel chain and booking a space.
With major hotel chains, you’ve got a reasonable assurance that what you have seen online about the property is going to be what you get. Individual hosts allowed to make their own listings, and a few of them could also be more honest than others. That isn’t exactly an issue.
You will check on the reality by reading the comments of previous guests about their experiences. This will provide you with a more objective view. Always check the feedback of guests who have stayed at any Airbnb property you’re inquisitive about, just to be sure the listing is precisely what you expect it to be.
Added Fees: Though it seems almost extra charges free for hosts, Airbnb imposes some additional fees (the same way hotels and other lodging providers). All guests need to pay a guest service charge of between 0% to 20% additionally to the reservation fee, to cover things like Airbnb’s customer support, etc.
Prices on the platform displays within the currency the guest selects provided Airbnb supports it. Banks or credit card issuers may include fees if applicable. And, while all listings are free, It also charges its hosts a service charge of at minimum 3% for each reservation, to cover the price of processing their transaction.
Taxes: Both Airbnb hosts and guests from European Union, Norway, and Switzerland is also subject to a value-added tax (VAT). Also, based on where they are, hosts may need to pay income taxes. To help with the U.S. tax compliance, it ensures to collect taxpayer information from its hosts so they will provide an account of their earnings each year via 1099 and 1042 forms.
It Isn’t Legal Everywhere: Before a seller can list their properties on it, they need to check their local zoning ordinances to make sure it is legal to hire out their properties. The service hosts can also be required to get special permits or licenses before they hire out their apartments.
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