It is easier now than it has ever been for homeowners to rent out a room in their house, or the entire home, for a short period of time to people who come from all over the country and/or world.

Home rental websites such as Airbnb, HomeAway and Housetrip help homeowners connect with renters in a safe and secure manner, and as a result, the business of short term rentals is burgeoning.

There are pros and cons to renting out your home to strangers, which you should consider before taking the plunge into this income opportunity.

Pros

1.  You have the opportunity to earn a supplementary income by offering your home as a rental to avid vacationers, for a day, a week or a month at a time.

If you like to go on vacation for certain specified times each year, for example, you can rent out your home to vacationers during the time you’ll be gone. Since it’s a short-term rental, you can return to your home and resume your normal activities whenever you’re ready.

You can then take the income you receive from these rentals and use it to pay your mortgage, if you have one, or to cover the cost of your own vacation, or simply to invest or put in the bank.

2. Websites such as Airbnb, HomeAway and Housetrip have been in business for a long time and have an excellent business model to follow.

If you wish to rent out your home you need only upload photos of the property, describe what you’re offering and all the amenities available, and then sit back and wait for interested parties to contact you.

These websites require potential renters to create a profile and share their bank details. When someone contacts you – or any homeowner, expressing an interest in renting the property, it is easy to then take a look at this information before deciding if you wish to rent your home to that individual or family.

The websites handle all issues of payment so the homeowner knows he or she will get paid what they ask, and the renters will know that they are getting their money’s worth.

3. If you rent out only a section of your home, and are present when the renters are there, then there’s the opportunity to meet new people, and share with them your love of the city in which you live. Lasting friendships can be developed in this way.

Cons

4. The very thing that makes short-term rentals attractive to the home owner – being able to rent their property for a day or week at a time so that they can return to their home when desired – is also what has the potential to cause problems for neighbors.

The more homes that offer this service in a neighborhood, the more traffic and noise it can generate, which can alter the atmosphere there drastically.

For example, a recent article in the Los Angeles Times (http://www.latimes.com/business/la-fi-anaheim-short-term-rentals-20151021-story.html) documents that residents in the city of Anaheim have complained about these issues to their local governments; so much so that there is currently a moratorium on homeowners being able to rent their homes. The city of Santa Ana, on the other hand, had a moratorium for a while but it has recently been lifted in order to give officials more time to study the impact of this practice.

A possible solution to this potential problem is for homeowners to leave specific instructions for their renters giving ground rules on the type of behavior expected while in the neighborhood.

Their guests should be encouraged to take care of the property as if it were their own, and to show consideration for any neighbors by not playing music too loud, for example, especially not late at night. Also, any parties held should end by a specific time…for example 11 pm.

Homeowners should also discuss their plans for their property with people on their block from the very beginning. This way, the neighbors will not be surprised to see “strange” people going in and out of a house, and perhaps call the police, thinking a robbery is in progress.

5. Government red tape seems to always expand whenever a business opportunity proves to be successful.

Before a homeowner can list his or her home on sites such as Airbnb, it’s necessary for them to first check with their local government to see if they’re even allowed to do it. (There may be a temporary moratorium as local governments study the impact, as is happening in California, or it may simply be that the local homeowners’ association simply has a policy against it.)

Local governments will undoubtedly institute a registration fee for any homeowner who intends to rent out their home. In California, this is $250 a year. They will also probably charge a room tax – and again in California this is 15% of the fee one charges to one’s renters.

It is necessary for any homeowner, therefore, to keep abreast of all the government rules and regulations that pertain to this business opportunity. The websites will probably not have any of this state/city-specific information, so people will have to research what is necessary themselves.

6. People who rent a property for just a short period of time may or may not treat the space with the necessary care. For this reason, the property owners will usually request a cleaning deposit be paid in advance, and keep that deposit if the renters have done any damage.

The damage can be slight – for example spilled coffee on the carpet in the living room, or flowers trampled down in the garden from children playing a bit too exuberantly.

People renting out their property should consider removing any items from their home that they do not want to lose to an accident because, after all, accidents do happen.

By charging a cleaning deposit and putting fragile items in storage, this potential problem can be reduced.

Summary

By being proactive and using common sense, the home owner can minimize the cons of renting out their home short-term, and enjoy the profits that will come in.