Want to cushion your retirement? If you live in a house that has a couple of spare bedrooms, you may want to consider renting them. Companies like Airbnb, Vacation Home Rentals, HomeAway, and VRBO can help you do that. Both Airbnb and Vacation Home Rentals charge a small 3% booking fee.
People from all over the world can rent out your space and Airbnb does not allow renters who are on the national sex registry, have terrorism designations, or who have any violent convictions. Airbnb connects guest offline identifications to their Airbnb profile and hosts can write reviews about their guests and vice versa. Most hosts have had positive hosting experiences.
Not only are there monetary benefits to renting out a room, but renting also allows you to stay in your home longer, gives you the chance for social engagement, and can give you purpose. A smaller benefit may be the experience of world culture without having to leave your home if you host individuals and families from around world. Hosting is a hands-on experience. Guests might have complaints that you will have to respond to, which may mean a little extra work.
Airbnb found that senior hosts can make up to $6,000 for about 60 working days. It is up to you for how long you host. If you rent for fewer than 15 days a year, there is no income tax on your rental income. If you do end up renting for more than 14 days, you can deduct the utilities, cleaning fees and repairs on your taxes so make sure to keep detailed records if you decide to rent out for a larger number of days. Additionally, depending on where you live you may have to pay state taxes for stays shorter than 30 days.
(From “Renting Rooms to Travelers Can Be A Source of Income Later in Life,” by Amy Zipkin and “Some Income the I.R.S. Doesn’t Need to Know About,” by Ann Carrns)
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