who pays the sales tax? do you disclose it ahead of time or are folks expecting this to be "under the radar" and no taxes collected?

what type insurance coverage is required? is it different than "regular" rental property coverage?

You provide bedding. Some provide basics such as a refrigerator, a coffee maker and a microwave. Aren't you subject to health inspections?

How do you get around the municipalities and zoning?

Not true at all, Nicole! It's very much a going and viable business. The sharing economy is here to stay.

Some cities have attempted to stop it but honestly, they are fighting a losing battle.

Here's a place to start:

I share some of the skepticism with the AirBnb model. It appears that when they started, the idea was to get into as many areas as quickly as possibly, using a scattered group of housing providers with only a few units, making it very difficult to enforce local ordinances and hotel taxes. "Get your foot in the door / easier to ask for forgiveness later than request permission."

What's interesting is they may be right!

As WMH says, the "sharing" economy has become very popular. Some municipalities are fighting back with regs and requiring AirBnb to collect the taxes due and forward it on...of course highlight consumer protection and safety as the main reasons but in reality reacting to the outcry from regulated hotels.

I see some potential risk to cities making it illegal and charging hefty fines for non-compliance. As long as you can rent a home as a traditional month by month or year lease and still make profit, though, it may be a case where you do it until they force you to stop.

Nicole, I'll try to answer a few of your questions. I have nightly rental condos in Branson. I don't use AirBnB, I prefer VRBO/Homeaway as my booking platform.

"who pays the sales tax? do you disclose it ahead of time or are folks expecting this to be "under the radar" and no taxes collected?"

Taxes are collected and forwarded to the city/state based on their Hotel/Motel tax rates, all communities have different rates.

what type insurance coverage is required? is it different than "regular" rental property coverage?

You will need a commercial rental insurance policy. An F&E policy won't be enough, but many insurance carriers have a policy that will work.

You provide bedding. Some provide basics such as a refrigerator, a coffee maker and a microwave. Aren't you subject to health inspections?

I've never seen a health inspection in my area. Yes, as a vacation rental you provide everything and it's completely furnished. I even include soap and shampoo.

How do you get around the municipalities and zoning?

You don't get around zoning, but most properties built on single or multi-family formats. As long as you keep your property single or multi-family I don't think you would have a problem.

Frankly, I prefer the nightly rentals over monthly rentals:

I've never had to file an eviction, I'm paid before they get access. And, I've had minimal damage to my condos, mostly just minor things, and the condos look as good today as they did when I completed the remodel.

I live near a resort area that has always had weekly vacation homes and condos for rent by property management companies. I knew a retired couple who rented their personal residence out every summer for extra income. The couple summered in an RV on the river that they owned anyway and made an extra $6K, even with the rental company taking out their 30% cut.

I don't know my neighbors. I doubt they know when we come and go, and we wouldn't notice if *they* did.

...90-day minimums for visiting nurses, etc. Eliminates the taxes due for short-term housing...

in PA, that is 29 days.

Seems to me you are either a "residential rental unit" which means in my area codes enforcement & licensed or something else. I cannot imagine the municipality allowing any type rentals without some type oversight.... if for no other reason than fee generation.

I've been reading ordinances and zoning in my municipalities (especially the one where I'd like to do this) and they all have a clause that properties will not be used for commercial purposes without going through the proper channels, inspections and approvals.

the property I would like to do this for is a cabin built in the 1920s, sitting in the middle of the woods so a lot of the issues about neighbors, parking, etc., would be moot. Certainly no certificate of occupancy, any type building codes compliance, etc. I do see one other property in this municipality and they actually have their address "skewed" ... showing it's in another county ... directly across the river from where it actually sits ... which says to me they checked and couldn't do it so they're sneaking past until they get caught ... perhaps just my paranoid mind.

Many states collect the "hotel tax" directly from airbnb. VT recently started this for example.

..People want all the bells n'wistles: cable, internet, linens, towels...

Nicole,

do a little research and see if any similar properties are listed on VRBO or Homeaway. Check their rates and their booking calendar to see if anyone wants a "rustic" vacation.

You may have a nice little nitch market for this cabin.

Good discussion. I've heard the same types of debates every time a market is disturbed.

I've read that theater-lovers thought the world would nearly end once radio became popular. But it turns out there's room for both types of entertainment.

I remember brick and mortar businesses protesting Amazon's practices. But with tax collection and the mainstreaming of online business, we see those who fought to sustain the status quo now struggle to stay relevant.