Jennifer Sokolowsky

Sharon Michie’s family has been in the vacation rental industry for 38 years. In that time, they have experienced hurricanes, 9/11, the BP oil spill, red tide, recessions, and now, the COVID-19 pandemic. She learned a crucial lesson from these catastrophes: Be prepared.

Danielle Dirks, a short-term rental host in Detroit, operates several downtown units near major hospitals through her business, CozyHaus. Traveling nurses and other medical professionals have long been a regular part of her clientele. So when the COVID-19 pandemic hit, she decided to use her resources to help medical staff battling the disease.

Two years ago, Christina Thoreson gave her husband, Christian, an unusual Christmas present: paperwork to form a nonprofit. The couple wanted to create a foundation that could help fund personal and professional development for employees at their short-term rental management company, Chattanooga Vacation Rentals. It sat on a shelf as they tended to their growing business, which manages properties in Tennessee and Georgia. Then came COVID-19. So they dusted off their nonprofit paperwork and relaunched the Fly Foundation, funding it with their personal savings, with a new mission: to supplement what unemployment does not cover so their laid-off staff could receive their normal level of income even while the business is down.

Even if you don’t know much about taxes, you probably know this: United States federal income tax returns are due April 15. However, if you’re a short-term rental host, income tax is probably not the only tax return deadline you have to deal with. Most short-term rental operators are also required to collect lodging taxes from their guests, file tax returns, and pay the tax to authorities.

When potential guests consider whether to stay in your short-term rental, they probably aren’t thinking about whether the house has a clean chimney or the proper number of fire extinguishers. But as a host, it’s wise for you to think about the safety features of the space you’re offering up for rental. Not only do you want to ensure the safety of your guests, but you should also be thinking about protecting yourself from liability.

It’s probably safe to say that many short-term rental hosts don’t know much about lodging taxes when they start operating their rental. However, it’s becoming increasingly important for hosts to get a handle on lodging taxes. Here’s a checklist every short-term rental host should follow.

Managing a successful short-term rental requires hosts to wear many hats — entrepreneur, concierge, accountant, tax expert, reservations agent, staff manager, designer, web master, and more. It’s a lot to take on, especially for short-term rental hosts with busy bookings or more than one property. Luckily, busy hosts can get technological help with many of the tasks associated with running a short-term rental. Here are some features to look for when considering short-term rental software.

The regulation of short-term rentals is a hot topic in cities across the United States. As the popularity of online short-term rental platforms such as Airbnb, VRBO, and HomeAway has grown, conflicts have increased as well — with disgruntled neighbors objecting to vacation party houses, the hotel industry seeking a level playing field, and cities looking to reap tax revenues. Operating a short-term rental business was once as simple as putting up a listing online. Now, an increasing number of c

Operating a short-term vacation rental means, in many places, that you also need to collect tax on the cost of that rental and pass it on to tax authorities — just like hotels do. With the rapid growth of the short-term rental industry over the past 10 years, governments are realizing the revenue potential in this area and increasingly looking for ways to make sure they capture as much of that tax money as they can.

Anyone operating a short-term vacation rental knows dealing with lodging taxes is no one’s favorite part of the job. But it is part of the job and it’s important to get lodging taxes right. Failing to do so can lead to a lot of hassles — paperwork, fines, penalties, and more contact with government tax agencies than anyone ever cares to experience.