Case Study Scenario: We're 63, have $1.6 million, and own a $1.1 million beachside vacation house that we usually rent out during the summer for $2,000 a week. A recent zoning change has made short-term renting impossible for our property. That income is a key piece of our retirement plan. Should we sell the property or convert it to a long-term rental, where someone would live in the house year-round?

Platforms like Airbnb and VRBO have long enabled people with second homes to get the best of both worlds — short-term rental income and a place to vacation themselves. But the prevalence of these short-term rentals has caused a growing number of cities to crack down.

In New York City, property owners and tenants alike are barred from renting out an entire apartment or home for fewer than 30 days. San Francisco, Los Angeles, and Las Vegas also have restrictive rules.

In New Jersey, where beach tourism is huge during the summer months, many municipalities have rules that cap short-term rentals to prevent excessive noise and overcrowding. And given that many beach house owners buy their homes for peace and relaxation, it won't be surprising to see more towns across the U.S. get stricter in the coming years.

That could create problems for property owners who rely on short-term rental income, though.

That's what's happening to the couple in our case study, Brian and Sally. They are a 63-year-old couple with a $1.1 million beach home that normally commands $2,000 a week during the peak summer season. In the absence of that rental income, they're not sure they can afford to keep the home, as they need the money to support their overall lifestyle.

Here's what the experts have to say about their conundrum.

The zoning update changes the equation

If you've owned your beach house for years, it's not just any old asset. Unloading that beach house isn't the same as selling an underperforming stock.

Still, you need to think carefully about whether it makes sense to keep the beach home, says

Stacy Brown, VP of Property Management Enablement at Real Property Management, a Neighborly company.

"At 63, this is no longer simply a vacation property decision," she says. "It is a retirement stability decision."

As Brown explains, many people purchase beach or vacation properties with a hybrid mindset. For Brian and Sally, that second home may be a lifestyle choice and legacy asset as much as it is an income producer.

At this point, though, Brown says, "If the summer rental income was a meaningful part of your retirement planning, the first step is to remove emotion from the analysis and evaluate whether the property still performs the function it was intended to serve."

Converting to a long-term rental could be a mixed bag

Since renting out the beach house on a short-term basis is no longer viable, your next logical move may be to see if you can make it work as a long-term rental.

Brown says, "Converting the home into a long-term rental may absolutely make sense if the property still cash flows comfortably, there's strong demand for long-term rentals in your market, you're comfortable with someone living in the home all year, you want to continue to benefit from the appreciation potential of the home, and the operational demands of a long-term rental still align with your lifestyle."

As Brown explains, there are several advantages to having a long-term rental, including predictable monthly income and lower turnover costs. Also, she points out that you won't have to keep track of and store inventory, such as paper products, that you'd normally provide to short-term renters. And, she says, your marketing expenses will be lower.

But there are also some tradeoffs.

"A home that once felt like yours can begin to feel fully occupied by someone else’s life," Brown says. "Long-term rentals create a very different ownership experience than seasonal vacation use. There is increased wear and tear, less flexibility for personal use, and, depending on the state, additional compliance."

Also, a long-term rental may not command the same income on an annual basis as a short-term rental that capitalizes on a peak rental season. If you'd normally get $2,000 a week for 10 or 12 weeks, that's $20,000 to $24,000 a year. You may want to talk to a local real estate agent to see what's realistic on a yearly basis, as that could help inform your decision.

If you do decide to make the home a long-term rental, there could be an added bonus. If the long-term rental doesn't work out, you may be able to do a 1031 exchange, in which you sell the beach house and roll the proceeds into another real estate investment. That could help you avoid an immediate tax bill (though you might face one eventually).

Does the rental belong in your investment portfolio at all?

While converting your short-term rental to a long-term rental allows you to keep the home, you'll need to consider whether that's worth doing if your usage of it will be limited. And from an investment perspective, it may not make sense to tie up so much of your money in a single asset.

As Evan Mills, associate financial adviser at Scholar Advising, explains, keeping the home could be risky.

"You have a $1.6 million portfolio and a $1.1 million beach house, so you're looking at almost half of your total wealth sitting in one concentrated area," he says. "On top of that, depending on where it is, you're worrying about floods, hurricanes, any type of damage that could set you back a fair amount of money."

A portfolio of stocks and bonds could lose value based on market conditions. But that's not the same thing as having to spend money to fix a failing roof or bear the cost of rising homeowners insurance premiums and property taxes.

Mills does point out that a long-term rental provides more stable income than a short-term rental. However, he says, "Now you're looking at wear and tear with somebody in there year-round, management fees, what they cover versus what you cover, insurance, [and] a lot of fees that pile on top of something you're never going to get to enjoy."

Or, to put it even more bluntly, "You're giving up the lifestyle piece entirely and taking on a whole different set of headaches for a yield that may not justify it."

Brown points out that coastal properties in particular carry added risk. There's insurance pressure and climate-related risk.

Between 2019 and 2024, homeowners insurance premiums rose 3% nationally but by 25% or more in southern coastal areas, according to the U.S. Government Accountability Office.

"Those are not emotional considerations," says Brown. "They are operational and financial realities."

If you do decide to unload the beach house, though, you'll need to keep a couple of things in mind.

First, since it's not a primary residence, you won't benefit from a capital gains exclusion on the sale. If the home has gained a lot of value since you bought it, you could have a large IRS bill on your hands. You may also be looking at depreciation recapture.

It's a matter of priority and honesty

Ultimately, keeping your beach home could still make financial sense if the rental income you generate exceeds your operating expenses and is meaningful to your retirement plan. But you'll need to be honest with yourself as to whether you view the rental property as a retirement income source or as a lifestyle asset.

"Sometimes," says Brown, "The right answer is, 'we can afford to keep this because it brings us joy.' And other times the answer is, 'this asset no longer aligns with the retirement we actually want.'"

Neither answer is wrong, Brown insists.

"The mistake would be avoiding the conversation because the property carries emotional value," Brown says. "The strongest long-term investors are not the ones who never change strategy. They are the ones willing to reassess even the assets they love when the environment around them changes."

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Adapting your home for a vacation rental — whether your whole house, a basement apartment or a room — could be a real help in retirement. America has a retirement cash flow problem, and there is no obvious solution for financially strapped U.S. retirees. So, it's worth running the numbers to see if this type of rental could add the cash cushion you need in your retirement plan.

According to a recent Employee Benefit Research Institute (EBRI) study, 68% of the nation’s retirees reported having outstanding credit card debt. At the same time, approximately half of US seniors said they have “saved less” than they needed for retirement.

Additionally, 59% of retirees told EBRI they have only 90 days of emergency savings, down from 69% in 2022. Meanwhile, 36% of retirees say they have experienced “unexpected spending needs” since their retirement, the study noted.

With thin wallets and draining bank accounts an unfortunate reality for too many US retirees, getting creative with income generation in their golden years isn’t a luxury — it’s a necessity.

That’s where a short-term Airbnb or Vrbo rental can help, experts say

"For retirees seeking extra cash flow, short-term renting can be a golden opportunity, but only if it fits their property and lifestyle,” says Jen Yacoube, wealth advisor at Adero Partners in Walnut Creek, Cal.

For retirees, an “ideal” setup would convert unused space into a private area with its room, bathroom, kitchenette, and entry, keeping life seamless and secure, Yacoube notes.

“Sharing a space is less ideal and can feel intrusive,” she says. “Equally important is deciding if a retiree wants to embrace the role of a hands-on host or would prefer a stress-free, passive income stream with a property manager. The key is aligning this venture with their vision for retirement."

Getting your vacation rental experience rolling

Starting out as an Airbnb or VRBO host isn’t overly complex, but you’ll still need a comprehensive action plan to get your short-term rental business going. Apply these expert tips to the process of getting up and renting.

Evaluate your situation

David Ciccarelli, CEO and founder of the vacation rental platform Lake, recommends that retirees start their short-term rental journey by self-evaluating. “Ask yourself the right questions,” he says. “Why do you want to rent out your place? Were you previously in the hospitality industry and loved being around and serving people? If you can connect there, it's likely a great fit.”

Yet, if you're looking for a simple way to generate income during retirement, it'll prove more challenging than anticipated. “Short-term rentals require marketing and technical skills to get set up properly,” he says. “These skills can be learned, but expect to spend hundreds of hours just getting going.”

Stage your home via video

Ciccarelli says that your home’s location and photos represent 90% of the marketing on these platforms.

“You'll need to name your property (ideally something catchy and unique) and then create some high-quality photos,” he notes. “If you're not into photography, ask your son, daughter, or grandkids to take "aspirational" and "inspirational" photos of each room in the house.”

Ciccarelli’s data shows that the top properties on his company’s platform have over 20 photos, with over 50 photos, so be prepared to take loads of pictures.

“When I say a photo of each room, I mean it,” he notes. “Include each amenity (i.e., washer, dryer, coffee maker, luxury towels, etc.,) and don't forget the home’s exterior. Be sure to upload photos of the property and the views from your deck or patio.”

Plan your pricing

Before officially signing up with a short-term rental partner like Airbnb or Vrbo, gauge your pricing points.

“Look at other similar rental homes in your geographic area and determine what they’re charging,” says Debra L. Morrison, a certified financial planner at Women Navigating Finances, LLC in Lincoln Park, N.J. “Compare the number of bedrooms to the number of bathrooms the view the accessibility and the location compared with your home.”

Mark your rent prices moderately higher or lower than the competition. “If you’re unsure, Vrbo has an automated system whereby you can check the local competition and their pricing,” Morrison says.

Be mindful of the calendar, as that can trigger higher rental prices in your favor. “Holiday pricing is often higher, as demand is high and supply is low,” Morrison adds. “If your home is located in an area with seasonal appeal, you’ll want to increase the per night rental charge for those weeks/months.”

To book longer stays, offer a 10%-15% rental discount for monthly renters. “That may incentivize folks to book your place for a month,” Morrison adds.

Set up your account

Both Airbnb and Vrbo make it relatively easy to sign up for short-term rentals at your retirement home, but there’s more to the job than that.

“You can either set up accounts on one or both channels, but if you plan on marketing your property on multiple rental sites, you’ll need a channel manager that can sync the calendars from both sites to a central booking calendar,” says Austin Hair, managing partner at Leaders Real Estate in Orlando, Fla.

Retirees can expect to see different property management systems online with varying price points and features, so do your due diligence and choose accordingly. “We use Hostaway as our channel manager and PMS, which allows us to offer our short-term rental on many different platforms, including Vrbo, Airbnb, Booking.com, and our direct booking website,” Hair notes.

Protect yourself

Airbnb and Vrbo provide standardized terms, but retirees may benefit from supplementing these with additional house rules or contracts.

“For example, specifying guidelines around noise, parties, or damage can help mitigate risks,” Hair says. “Consider requiring security deposits and investing in short-term rental insurance for added protection. You can implement a rental agreement with a digital signature by using property management software like Ownerrez.”

Aim for a short-term rental contract, a must-have for retirees working with Airbnb or Vrbo.

“A short-term lease rental contract makes the most sense in so much as you can include a liability protection clause,” Morrison advises. “Very few people starting out renting their homes imagine the worst, yet the worst can happen. So make sure to collect a significant security deposit and name the conditions that cause renters to forfeit a part or all of their security deposit.”

It's also a good idea to automatically include a separate liability policy per rental with a partner like Vrbo. “At about $80 or, that policy provision can provide extra coverage,” Morrison adds.

Check with your homeowners' association

If you have a homeowner’s association, you’ll want to know any association rules governing short-term rentals.

“If you’re a condo or co-op owner and want to work with Airbnb or Vrbo, examine your association’s bylaws,” Morrison says. “If your association rules dictate a certain minimum night stay, you’ll need to put that in your description so you don’t have to answer every single inquiry about minimum stays.”

Last minute tips

A retiree looking to succeed in the short-term home rental market with Airbnb or VRBO should emphasize good customer service and responsiveness.

“If you’re managing the property yourself, aim to respond to renters within 5–10 minutes and set up an automatic message after check-in to address any issues early on, potentially avoiding negative reviews,” Yacoube says. “Build a cushion into your pricing to cover inevitable minor breakages like glasses or dishes, rather than charging renters for normal wear and tear.”

Make the process easier on yourself with small action moves that help.

“Save yourself any hassles by designing your space with durable, easy-to-clean materials that can withstand heavy use,” Yacoube notes. “One of the biggest mistakes hosts make is over-personalizing the space with fragile or high-maintenance furnishings.”

“Short-term rentals thrive on practicality and guest comfort, not perfection,” she adds.

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Airbnb (ABNB) stock soared out of the gate Friday after the travel booking and rental platform beat top- and bottom-line expectations for its fourth quarter.

In the three months ending December 31, Airbnb's revenue increased 11.8% year over year to $2.5 billion, boosted by a 12.3% increase in nights and experiences booked to 111 million. It also swung to a net profit of 73 cents per share from a loss of 55 cents per share in the year-ago period.

"Nights growth accelerated in Q4 compared to Q3—resulting in the highest-growth quarter of the year," Airbnb said in a statement announcing its results. "Airbnb is a fundamentally stronger company today than it was several years ago."

The results topped analysts' expectations. Wall Street was anticipating revenue of $2.4 billion and earnings of 58 cents per share, according to CNBC.

Airbnb also said gross booking value (GBV) increased 13.5% year over year to $17.6 billion, while GBV per night and experience booked increased 0.9% to $158.13.

For its first quarter, Airbnb said it expects to achieve revenue in the range of $2.23 billion to $2.27 billion, representing growth of 4% to 6% from the year-ago period. The midpoint, $2.25 billion, came up short of analysts' expectations of $2.3 billion.

Management noted in its statement that since ABNB's initial public offering in 2020 revenue and GBV have tripled, adding as well that last year Airbnb "outpaced the travel industry's growth."

Airbnb said it continues "to build on this momentum in 2025" as it executes "a multi-year strategy to perfect the core service, accelerate growth in global markets, and launch and scale new offerings."

Is Airbnb stock a buy, sell or hold?

Airbnb stock has lagged the S&P 500 over the trailing 12 months, bogged down most recently after it reported mixed third-quarter results and offered a soft outlook. And Wall Street is on the sidelines when it comes to the consumer discretionary stock.

According to S&P Global Market Intelligence, the average analyst target price for ABNB stock is $150.31, representing a discount of more than 6% to current levels. Meanwhile, the consensus recommendation is Hold.

Financial services firm B. Riley Securities maintained its Neutral rating (equivalent to a Hold) but raised its price target on ABNB stock to $145 from $131 following the earnings beat.

"Airbnb reported solid 4Q results, with bookings, revenue, and EBITDA coming in ahead of expectations, driven by strength in booked nights," B. Riley Securities analyst Naved Khan writes in a post-earnings update.

The travel stock is trading at 18.4 times 2025 adjusted EBITDA and 34.1 times price-to-earnings, Khan notes. "We continue to find the risk/reward balanced and opt to stay on the sidelines."

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Short-term rentals for vacation travel have exploded in the age of mobile data. Since its founding in 2008, Airbnb has helped more than 2 billion guests book and stay at short-term rentals in over 220 countries. Whether you plan to stay in one of the cheapest countries around the world or a nearby town, you'll find diverse property types and prices.

But Airbnb’s explosive growth isn’t without its nightmares. The internet is riddled with scary scenarios: Bedbugs, last-minute cancellations, over-the-top host cleaning requests and bare-bones amenities. Worse, poor customer service has left guests scrambling for new digs.

“We booked an Airbnb last year for the Montreal Jazz Festival. After paying our deposit, we had no communication, including basics like where to get the key,’’ says Christi Cassidy, a literary publicist who lives in Hudson, New York. When Christi and her partner, Nan Kinney, called Airbnb support for help, they were told their Montreal rental was a fake listing. Surprise!

“They refunded our money and offered to help book us another Airbnb, but nothing else was available so we wound up staying in a Marriott Courtyard for twice the price,’’ she says.

As the new year approaches, it’s not too early to start looking for summer rentals in the better vacation areas. Here are some tools and tricks for successfully booking short-term rentals.

1. The top short-term rental sites have different strenths

• Airbnb: By far the largest and best-known short-term rental website, with more than 7 million listings in 100,000 cities worldwide.
• Vrbo: Established in 1995, the site focuses on private homes and tends to attract a more mature clientele looking for the privacy of whole-home rentals.
• Booking.com: With over 6 million listings in over 224 countries, Booking.com offers hotels alongside short-term rentals, making it valuable for comparing apartment, condo or home prices vs. hotels at your choice destination.
• Expedia: Like Booking.com, this online travel agency offers short-term rentals and vacation homes alongside hotel listings.
• TripAdvisor: A wealth of customer reviews helps ensure a satisfying rental.

2. Know your assignment

Searching listings can prove overwhelming. A weekend in Nashville will alone serve up over 1,000 different rental options. That’s why you need a game plan, says Adrian Selby, a retired entertainment and communications executive from Litchfield, Conn.

“Let’s say we are going to London,’’ Selby says, adding: “I scour the listings, create a short list that I review with my wife Maggie, then we pick one. It’s a lot of work to get it right, and even then, you can be fooled by artful photos!”

3. Know your filters

“Make sure the property has what you need, whether it's a coffee machine, blender, pool access or beachfront views. These details can make a big difference in ensuring a comfortable, pleasant stay,” says Caitlin Johnston, co-founder along with Stefanie Medd of Host & Stay, a company that helps short-term rental owners maximize their listings.

If an amenity is extremely critical, New York City attorney Linda G. Marynov advises confirming with your host before you book.

“We rented from Vrbo in Chatham, Mass. It was a big, beautiful six-bedroom house, billed as having a ‘chef’s kitchen.’ Except it wasn’t a chef’s kitchen. The pots, pans and colander were rusty. The oven didn’t work properly. There were two sinks, but one leaked. The barbecue wasn’t operational. We were there to celebrate and cook with friends. It was beyond disappointing,’’ she says.

4. There is good news for consumers

As their reputations got hammered, short-term rental platforms learned and evolved. They’ve even persuaded hosts to stop leaving picayune checklists for pre-departure cleanup.

“One major update is AirCover on Airbnb, which provides 24/7 support, booking guarantees, protection against last-minute cancellations or other issues with the property,’’ says Host & Stay co-founder Stefanie Medd.

To fight against fake listings like the one Christi Cassidy and Nan Kinney booked in Montreal, Airbnb has begun verifying listings to ensure that they’re real, their location is accurate and that the property’s “photos and descriptions align with what you’ll experience during your stay,’’ Caitlin Johnston says.

In June 2024, Airbnb implemented its major disruptive events policy, allowing guests and hosts to cancel without penalty when weather or natural disasters occur. Good thing in the age of Category 5 hurricanes.

5. Booking far in advance vs. last-minute deals

Nerdwallet studied Airbnb prices in 10 top markets and found that booking four weeks out yielded the lowest median price. Trying to hedge having the best rentals available vs. best possible price is definitely a time-consuming game.

Unlike airlines or hotels that compete against each other, Airbnb controls its search tool.

“This means that the platform has no incentive to simplify the process of finding discounts or helping users know when a property offers a good or bad deal on any given date,’’ says travel expert Sam Kellis.

Landing a cool spot in Paris in June or New Year’s Eve in New Orleans requires planning and booking in advance, turning pricing into a secondary consideration. If you want bargains, look for deals and destinations off-peak.

6. Read the reviews carefully

Without reviews, short-term rental platforms would never survive. Pictures may tell 1,000 words, but it’s the published feedback from other guests that’s the basis for determining an Airbnb rental’s quality and reliability.

“It’s important to make reading the reviews a priority — especially if the property has less than a 5-star rating. Look into why past guests may have left lower ratings and if there are any patterns in the feedback,’’ says Andrew Peterson, a real estate agent who manages rental properties in the Fort Lauderdale, Fla., area.

7. Is a short-term rental cost-effective?

Cleaning fees, service fees, extra guest charges and local taxes can leave guests with sticker shock.

For instance, a luxe home in Nashville for a week in February costs $9,366.90 or $1,873.38 per night. Add on the $533 cleaning fee, $1,397.63 in Airbnb service fee, plus $1,750.51 in taxes, and that week totals $13,048.04.

8. Hosts may offer discounts for longer stays

According to Nerdwallet, the nightly rate for a seven-night Airbnb stay is 32% cheaper than the nightly rate for a one-night stay. A 30-day booking averages a 46% discount per night over the cost of one night.

The Selbys say their go-to travel strategy is to use Airbnb only for longer stays — never for less than a week. “Last year in Paris we had a seven-night stay for a total of about $6,000. A nice hotel would have been twice that,’’ Adrian Selby says.

9. Know who your host is and how they communicate

Instant booking is available for many rentals, but before you commit and pay the deposit, reach out to the host. Airbnb and other rental sites have a message function that will deliver your inquiry directly to the host. This will set the stage for what kind of communication and service you can expect during your stay.

And remember: There are no front desks or concierge services. You might need a phone app to gain entry to the place. There could be a lockbox. A key might be in a flower pot. Make sure you have your host’s contact information on hand.

10. Make sure you understand the cancellation policy

“While many guests prefer lenient policies for flexibility, they don’t always review these policies closely before booking. In fact, only a percentage of guests ensure that the cancellation policy aligns with their needs,’’ Stefanie Medd says.

“I also look at the cancellation terms,” says Adrian Selby. “I always reject ones that have a no-cancel policy.’’

Note: This item first appeared in Kiplinger Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that’s right on the money.

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Airbnb (ABNB) stock is one of the worst S&P 500 stocks Friday after the travel booking and rental platform reported mixed results for its third quarter and provided a soft outlook for its fourth quarter.

In the three months ended September 30, Airbnb's revenue increased 9.9% year over year to $3.73 billion, boosted by an 8.5% jump in nights and experiences booked to 122.8 million. Its earnings per share (EPS), meanwhile, was down nearly 68% from the year-ago period to $2.13. The sharp decline in earnings per share was mostly the result of a tax benefit recorded in the third quarter of 2023.

"Airbnb had a strong Q3. Nights and Experiences Booked accelerated throughout the quarter and into Q4, despite a softer start due to shorter booking lead times compared to 2023," the company said in a statement. "We generated $1.1 billion of free cash flow during Q3 and $4.1 billion of free cash flow over the trailing twelve months, highlighting the strength of our cash-generating business model."

The results were mixed compared to analysts' expectations. Wall Street was anticipating revenue of $3.72 billion and earnings of $2.14 per share, according to CNBC.

For the fourth quarter, Airbnb said it expects to achieve revenue in the range of $2.39 billion to $2.44 billion. The midpoint of this outlook, $2.415 billion, came up just shy of the $2.42 billion in revenue analysts are calling for.

Is Airbnb stock a buy, sell or hold?

Airbnb has lagged the broader market in 2024 and is currently up 10.5% for the year to date vs the S&P 500's 37% return. And Wall Street is on the sidelines when it comes to the consumer discretionary stock. 

According to S&P Global Market Intelligence, the average analyst target price for ABNB stock is $132.04, representing a slight discount to current levels. Meanwhile, the consensus recommendation is Hold. 

Financial services firm Oppenheimer is one of those with a Perform rating (equivalent to a Hold) on the large-cap stock.

"On the positive side, we see ABNB as the best-positioned travel company based on its strong global brand (limited Google risk) and ability to quickly adjust to travelers' demands through the combination of unique-supply and flexible terms," says Oppenheimer analyst Jed Kelly. 

The analyst adds that the "work from anywhere" trends are likely to endure, which will provide strong tailwinds for ABNB to penetrate its massive total addressable market. 

However, "investors appear to be baking in strong execution, and we see a high degree of multiple compression risk into uncertain macro with decelerating nights," Kelly warns.

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Is your neighborhood or community pool far too crowded to enjoy? Maybe you want to take a dip in privacy or you’re planning a pool party for your grandkids. You can actually rent a luxury pool this summer by using Swimply  — the Airbnb of Pools.

Rent a pool with Swimply

Swimply, founded in 2018, is an online marketplace for pool rentals and is available across many large U.S. cities, as well as in Canada and Australia. Similar to Airbnb, you’ll enter your location and desired date, and then browse available listings in that area for the specified time frame. Added filters also let you narrow down your options based on size, amenities and price range. Once you find a property you like and the booking is approved by the owner, you’ll receive the property's address and any additional information concerning your reservation. Unlike Airbnb, however, rentals aren’t made on a daily basis, but on an hourly basis.

Swimply is a good option if you’re looking to cool off with a solo swim or host a pool party with friends and family — without having to shell out for a nightly hotel rate (for a pool you'll have to share with other guests, anyway). Another benefit: you can even search for pet-friendly pool rentals, so your dogs can cool off by taking a swim as well. Listings range from simple, basic pools, to properties with BBQ grills, hot tubs, waterfalls and kiddie pools. And while the main draw of the site is, obviously, its pools, you can also browse tennis courts and pickleball courts if that’s more your vibe. Just be aware that prices will vary depending on the listing.

How much does Swimply cost?

Since hosts set their own hourly rates, the cost of pools on Swimply varies from listing to listing. Prices can range anywhere from just $20 an hour, to several hundred dollars an hour, depending on location and amenities. However, a quick search in the Atlanta area shows many highly rated listings around $30 to $60 an hour. 

Available listings

Here are a few pictures and profiles of currently available listings in various locations to give you an idea of what properties are out there and how much they cost.

Resort Style pool and event space

• Location: Las Vegas, Nevada
• Price: $35 per hour

Club Oasis

• Location: Rochelle Park, New Jersey
• Price: $58.50 per hour

30 foot waterslide pool

• Location: Huntington, New York
• Price: $90 per hour

Mad Men pool

• Location: Portland, Oregon
• Price: $80 per hour

Private Bal Harbour waterfront pool/hot tub

• Location: Bal Harbour, Florida
• Price: $150 per hour

Make money by renting out your pool

Maybe you have a private pool, but you don’t use it as much as you should. You could make money on that. And no, you don’t have to rent out your entire home, either. You can rent out your personal pool by the hour on Swimply, all you have to do is create an account, list your space, set an hourly rate and establish your house rules. Approve guests at your discretion and get paid within 24 hours after a completed reservation.

Hosts earn between 70% - 85% of the total booking price (excluding guest fees) from each reservation. And the Swimply Protection Guarantee protects all bookings done via Swimply for up to $2 million for general liability claims and $10,000 of property protection per occurrence.

Not only is listing your pool on Swimply an easy way to help cover your standard pool maintenance costs, but it can also become a new revenue stream for you and your family. Some hosts make over $10,000 a month by simply sharing their pool with you when they aren't using it.

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Are you tired of traveling and staying in the same mundane hotel rooms? If you’re looking for a new experience or a bit of whimsy on your next vacation, consider branching out of your comfort zone and thinking outside of the box with your lodgings. There’s plenty to choose from on Airbnb — you'd be surprised how many quirky stays you'll find. We’ve compiled several of the most unique (and awesome) Airbnbs you can stay in on your next vacation.

1. The Pinecone Treehouse

You can sleep in the upper Redwood canopy in this pinecone-shaped treehouse, featuring 360-degree views of the forest's upper canopy and two triangle-shaped see-through floor panels that give the sensation of floating amid the trees. You will need to navigate the step ladder to ascend and descend the property, which is located in the Redwood forests of Bonny Doon, California. This one-of-a-kind accommodation is suitable for a couple — it has one queen bed and one bathroom. One downside: the bathroom is located at ground level in a mini treehouse structure, and while it offers running water for the sink and shower, there’s no plumbed toilet — it’s a compostable one. The cost? $799 a night. And if you're on the East Coast, check out this secluded treehouse, just minutes from downtown Atlanta.

2. The Kellogg Doolittle House

This Kellogg Doolittle House is a marvel of the organic architecture movement and is easily one of the most beautiful homes available to rent on Airbnb. Architect Ken Kellogg (a former protégé of Frank Lloyd Wright) and master craftsman John Vugrin built this stunning home directly into the natural landscape of Joshua Tree, California. According to the listing, “the kitchen and living room stretch softly around an unmoved, million-year-old rock formation, while the glass panels peek into a sprawl of sunrise and sunset views.” The three bedrooms and bathrooms are also crafted to highlight the stunning landscape. It’s “the most unsung great residence in America by one of architecture’s least-known major talents,” according to The New York Times. You’ll have to be willing to shell out a good bit of cash to stay in this work of art, however. There is a three-night minimum stay, which will cost $18,000. But if you can afford it, it’s worth it — the home has a five-star rating with reviews praising it as an architectural masterpiece. 

3. Snow Igloo

This one isn’t for the faint of heart, but for the real adventure seekers who want an experience unlike any other. Stay in the snow igloo — yes, a real room in an ice dome. Located in Pelkosenniemi, Finland, you can sleep in a real igloo the hosts make every winter. And while this may seem absurd for those who don’t like the cold weather (it’s always negative degrees inside the igloo), those who don’t mind bundling up can explore the wilderness like never before, and if lucky, get a great view of the northern lights. According to the listing, there’s a “warm apartment available 24h in case of cold feet.” The Igloo is also closely located to the Lucky Ranch Saloon where visitors can order food, use the bathroom and warm up. A one-night stay in December costs $186. 

4. True Cold War Relic Atlas F Missile Silo / Bunker 

History buffs will appreciate this one. You can stay in a missile base/bunker property, complete with an underground launch control center and utility tunnel leading to an 186 feet deep missile silo. Included with your stay is an in-depth tour of the property’s history from the owner, Gary, who lives on the lower level of the former launch control center. And guests praise Gary’s insight into what it took to operate one of these sites. One review reads, ”Gary’s knowledge and life experience is the stuff of movies, and our chats were riveting.” You’ll also be surprised at how comfortable the space is, guests have referred to it as “homey” and “cozy” — not exactly what you’d expect from a missile silo. The property is located in Roswell, New Mexico, is suitable for four guests and costs $588 a night. 

5. UFO Guadalupe 

Did you know you can stay in a UFO? Complete with alien-themed decor and a telescope to hunt for ETs, this home in Francisco Zarco (Valle de Guadalupe), Mexico is a must-stay for sci-fi lovers. The space features minimalist futuristic interiors and a 360-degree view of the Valley of Guadalupe. It sleeps four people and costs $364 a night. 

6. Quetzalcoatl's Nest

Come and dream in one of the most whimsical, unique private housing complexes in  Naucalpan de Juárez, Mexico — Quetzalcoatl’s Nest. Meaning “plumed serpent,” the structure is actually shaped like a snake, spanning 65,000 square feet, with botanical gardens, lakes and mineral caves. Stay in the belly of the snake in this 4 bedroom, 3.5 bath condo with beautiful organic architecture built by Javier Senosiain and feel like you’re living in a fairy tale. There's a two-night minimum to stay here, which will cost $1,110 before taxes.

Related Content

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Traveling families and groups can generally save on Airbnb and VRBO rentals compared to hotels. And longer stays are often cheaper when booked at vacation rentals. However, if you’re a frequent traveler and you’ve racked up points or miles on travel rewards credit cards or through other loyalty programs, you typically won’t be able to use them to book a vacation rental. But you can harness Airbnb and VRBO co-branded loyalty programs to earn even more points, which you can use for airfare or other travel expenses.

Here’s a guide to earning and redeeming points or miles by booking an Airbnb or VRBO.  And not to get too existential, but are Airbnbs really cheaper than hotels? We have answers.

How to earn points or miles on an Airbnb stay

Two airline loyalty programs will allow you to earn points or miles for Airbnb stays. 

• Earn Delta SkyMiles®: Book your Airbnb stay through a special portal provided by the SkyMiles program and enter your SkyMiles member number. Earn one mile for each dollar spent on your Airbnb rental, excluding taxes and fees. Each Delta SkyMile is worth about 1.2 cents, according to Bankrate. If you pay with a SkyMiles American Express Platinum Card, you can double the miles you earn and get a 15% discount on Delta flights (booked with the card). 
• Earn British Airways Avios points: Book your Airbnb stays or Airbnb Experiences through the British Airways Airbnb program website. Be sure to enable cookies and follow other directions on the site. You will earn two Avios for each Dollar, Euro or British Pound you spend. Each Avio is worth about 0.7 cents. Use a credit card with British Airways as a travel partner to maximize your rewards. For example, book using cards issued by Capital One and those that offer American Express Membership rewards, Bilt Rewards, Chase Ultimate Rewards and Marriott Bonvoy points. 

Earn rewards for a VRBO stay

VRBO, the vacation rental competitor to Airbnb, also has partnerships that can earn you rewards.

United MileagePlus: Book your VRBO property through the United/VRBO portal to earn three United MileagePlus miles for each dollar spent at VRBO. MileagePlus miles are each worth about 0.9 cents. Access the portal through the terms and conditions page of the program.

One Key Rewards: VRBO participates in the One Key Rewards program. When you sign up for the free program, you earn OneKeyCash when you book eligible travel on Expedia, Hotels.com, and Vrbo. One Key bookings earn 2% points back for each dollar spent. You can use these rewards on future bookings. If you book on Expedia.com, you may be able to use your travel card or enter your airline loyalty program to stack your rewards. 

Can you redeem rewards for an Airbnb or VRBO stay?

Some travel experts may recommend buying Airbnb gift cards with reward credit card redemptions, but that approach is complicated and rarely worth the trouble. Others may suggest cashing out miles or rewards to pay for Airbnb or VRBO rentals, but that's a waste of rewards that will likely get a better return when spent on travel. For example, if you have a lot of Chase Ultimate Rewards, you could cash them out for one cent per point to pay for an Airbnb rental, but depending on your card, you might get 1.25 or 1.5 cents for purchasing other travel on the card.

If your travel credit card has an annual travel credit, you may be able to get credit for your Airbnb or VRBO purchase. For example, the Chase Sapphire Reserve® card provides $300 in travel credits per year, allowing you to get reimbursed for up to $300 in Airbnb or VRBO expenses. Be sure to check with your credit card company that these vacation rentals will qualify for the travel credit, as terms change often.

Another way to make your Airbnb or VRBO stay count is to use a flat-rate cash back credit card; at least you will earn 2% or 3% back on your stay.

Are Airbnb and VRBO rentals cheaper than hotel rooms?

It has been a given that vacation rentals like Airbnb would save money over a hotel room. That assumption, at least for one or two travelers, may now be wrong. A 2023 study by the U.K. consumer website, Which?, found that a hotel room is cheaper than a one-bedroom Airbnb or VRBO rental in 38 of 50 destinations. 

However, the study did not consider how much travelers could save by having a kitchen in a vacation rental. For those staying in expensive cities like London or Paris, eating in can save substantially over dining out. And many vacation rentals have washing machines and dryers. If you're in a hotel, you could pay a premium to have a laundry service wash your clothes. Or you might have to trek to a laundromat  — the last thing anyone wants to do on their vacation.

The study also failed to compare the cost of large vacation rentals to the corresponding number of hotel rooms. Families often opt for vacation rentals because they tend to get a better deal than on multiple hotel rooms.

However, the outlook for Airbnb and VRBO properties is in flux, especially in large cities.

Given the tight housing market and lack of affordable housing in the U.S. and abroad, several cities are trying to reduce the number of vacation rentals, which could raise prices in the long term. 

For example, New York City implemented strict short-term rental rules last September, saying that the 10,000 such units diminished the city's supply of rental housing. By the end of September, the city had approved just over 400 applications from landlords seeking to register their apartments legally as Airbnb or VRBO properties, according to Gothamist. 

Other locations are changing development laws to discourage Airbnb or VRBO. The city of Providence, RI has approved a new housing development with the caveat that the apartments can never be used for vacation rentals.  

Vacation rentals have also piled on the fees in recent years. Those fees for cleaning a property after you leave or for extra guests can add up. And starting on April 1, Airbnb is adding a 2% cross-currency fee. This fee applies to guests who book rentals in a different currency than that of the host country. 

To Airbnb or not to Airbnb?

If you are traveling as a large family or group, Airbnb or VRBO may still be your cheapest bet in some locations, especially if you plan on doing your own cooking and laundry. But with current market conditions and fees, it makes sense to compare the price of a vacation rental with a hotel. 

Read More

• 5 Ways to Save Money on Vacation Rental Properties
• New Airbnb Camera Ban, 2% Cross-Currency Fee Coming Soon
• Would You Buy Airbnb's New 'Rooms' Option? Why I'll Still Be in a Hotel
• 5 Great Places to Buy a Vacation Home

Airbnb has a few changes planned starting in April, the latest of which is a ban on indoor security cameras by hosts at their properties, a move that follows its previously announced plan to add a 2% fee for cross-currency bookings.

The camera ban is set to begin on April 30, which will give hosts time to comply with the new rule, the vacation rental properties company said in a website update.

Previously, cameras were allowed in common areas, such as hallways and living rooms, as long as the host disclosed the location on their listing pages and the cameras were clearly visible, Airbnb said. But, after consulting with guests and privacy experts, the decision was made to no longer allow these cameras, it added.

Airbnb said that doorbell cameras and noise decibel monitors are still permitted for hosts to monitor the security of their homes and prevent unauthorized parties, but they must disclose the presence of these devices in their listings pages. 

Hosts may not, however, put outdoor cameras where guests have a greater expectation of privacy, such as if the property has a sauna, the company said.

The cross-currency bookings fee, which was announced last month and goes into effect on April 1, applies if you pay using a currency other than the one the host has set for the listing. The fee will be charged on top of all other service fees associated with bookings made on or after that day.

Airbnb also updated its terms of service, effective immediately for all first time users and on March 28 for existing users.

Types of Airbnb fees

Here's a break down of the types of fees you may be charged:

• Nightly price: The rate set by the host for staying at their property.
• Airbnb service fee: A charge for 24/7 customer service.
• Cleaning fee: Some hosts will charge this to cover the cost of cleaning the property after your stay.
• Extra guest fee: Some hosts will charge a fee for each additional guest beyond a specified number.
• Pet fee: Some hosts allow pets to stay at their properties for an additional fee that may be separate from cleaning fees.
• Security deposit: Hosts that manage their listings with a specific software may set a security deposit, which will be communicated during the booking process. You can learn more about Airbnb security deposits here.
• Valued Added Tax (VAT, JCT and GST): This is charged to guests in certain countries. You can learn more about VAT here.
• Local taxes: This is charged based on the location of the host’s listing. You can learn more about local taxes here.

The company's other recent policy changes include the late 2022 launch of its "display total pricing" feature, which allows users to see a full price breakdown of costs before booking.

The feature was introduced amid a raft of complaints about hidden service fees and tasks that customers were expected to do before checking out. Last June, the company was one of several that President Joe Biden recognized for eliminating junk fees and increasing pricing transparency for customers.

Do you need ideas about places to visit? Despite inflation, there are some areas where the dollar is strong. To get the details, check out Kiplinger's cheapest countries to travel to report. In addition, the 24 best travel sites to find deals and save you money may help you with your research.

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Renting out your home on Airbnb can help you earn money and bring in some extra cash. Maybe you have a few extra rooms in your house you'd like to list, or maybe you're always travelling and need to rent out your entire home. Either way, listing your home on Airbnb can help boost your overall income. However, there are several things to consider before you host your first guests. 

Here's what you should know before listing your home on Airbnb.

1. Make sure your rental is legal

Renting out your home while you're away sounds like an easy way to make money (and may even help pay for your vacation). But you need to make sure your rental is legal, you have the right insurance and you're paying all the taxes due.

Before posting your ad, ask your condo association, homeowners association or co-op board if short-term rentals (often defined as less than 30 consecutive days) are allowed. Then search your local government website for restrictions that may complicate your plans. Your municipality may have a short-term rental office, or you may need to call your city or county to clarify the rules.

2. Follow all regulations

You may need to register your unit with the city, pay for a license, submit floor plans, undergo an inspection or notify your neighbors. Some cities also set limits on the number of guests who can occupy your home at once, the maximum number of days you can rent your home each year, or the minimum number of days that you must live in your home each year in order to dabble in short-term rentals.

"There is no blanket regulatory policy that governs short-term rentals," says Matt Kiessling, former vice president of short-term rental policy for the Travel Technology Association. Airbnb summarizes laws for more than 50 localities on its site.

3. Protect yourself from damage

You also want to protect yourself from damage or theft in your home and the potential for liability claims. Discuss your plans with your homeowners insurer and be up front about how often you hope to rent out your home. Increasingly, insurers are paying attention to this kind of activity and working out a solution with clients when possible. Your insurer may be comfortable allowing "incidental" rentals through Airbnb (meaning you still treat your home like a primary residence and only rent it out on occasion each year), or it may sell an add-on that covers short-term rentals, such as Allstate's HostAdvantage (covering $10,000 of personal property per rental period).

Although Airbnb includes liability and damage protection for its hosts, "I wouldn't want to rely on Airbnb rebuilding my home if it burned down and we don't know why," says Spencer Houldin, president of Ericson Insurance Advisors in Washington Depot, Conn. "I'd rather have my homeowners carrier accept the risk."

4. Don't forget taxes

Keep a log of your rental days, as well as receipts for your expenses. You may need to collect occupancy, sales or lodging taxes for your city, county or state. Airbnb takes care of this in a number of locales. You can find more information about tax rates and links to the relevant authorities in dozens of regions by searching "occupancy taxes" in Airbnb's "help" section.

You also need to pay income taxes on your rental earnings if you rent out your home for more than 14 days out of the year. Homeowners who rent through Airbnb without providing hotel-like services, such as meals or daily cleaning, will report short-term rental income on Schedule E rather than Schedule C, says Mike D'Avolio, staff program manager at Intuit.

On Schedule E, you can deduct expenses that directly relate to the rental, such as host service fees or bedding only used by your paying guests, as well as a portion of expenses that are attributable to guest use (such as a fresh paint job and utilities). This allocation is based on the number of days you rented your property during the year, so if you rent out your home for 30 days in 2018, you can deduct roughly one-twelfth of shared expenses.

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For many travelers, staying in vacation rental properties beats staying in hotels, especially if you have a large family and enjoy the extra space or a kitchen to cook your meals.

Plus, you can usually find one at a price that's lower than a hotel room. However, despite the fact that vacation rental properties can be a bargain compared to hotels, they still aren't cheap.

Here are several strategies you can use the next time you travel to save money on a vacation rental property.

Save on vacation rental properties

1. Rent directly through property owners: If you book an apartment, condo or house through an owner rather than a property management company or resort, you can sometimes avoid the mark-ups charged by the middleman.

You can find owner-operated properties through sites such as Airbnb.com and VRBO.com. The same property may be listed on several rental sites, so look around to find the listing with the lowest price and lowest fees.

Be aware that every rental property is different. Read reviews about the properties you're interested in, ask owners about anything important to you, such as whether the property is pet-friendly, and pay by credit card or PayPal.

If an owner requires you to mail cash or use a wire transfer service, consider it a red flag and move on to another rental.

2. Book at the right time: According to NerdWallet, the best time to book an Airbnb to score the lowest median price was four weeks in advance. They found that property owners were "lowering their prices about a month out compared to last-minute bookings or those made well in advance."

Although you'll have more options if you book several months in advance, sometimes you can luck out by waiting until a few weeks before check-in.

However, NerdWallet also said that the ideal time to book a property could be further in advance during peak travel seasons or the reverse during low seasons.

3. Be flexible with your dates: Rental property rates vary a lot throughout the year, though rates are higher during an area’s peak season. For this reason, being flexible with your travel dates can help you save some cash.

If you’re able, travel before or after peak season, which is the summer months for most beaches and December and January for winter retreats. If you can travel only during peak season, check rates for a variety of date ranges, since the prices vary week to week.

Midweek stays or shorter trips that don't overlap with major holidays may offer better rates as well.

4. Book properties farther away from popular tourist attractions: Proximity typically comes with a price, so look for places that are farther from the tourist hot spots. For example, beach houses a few blocks from the ocean typically are several hundred dollars cheaper per week (or even per night) than beachfront properties.

In some resort areas, rentals that aren’t in the resort itself sometimes offer access to the resort’s amenities, such as a golf course, but cost much less than a room in the resort.

So don’t limit your search to one beach, one neighborhood or even one city in an area you want to visit. The farther off the beaten path, the greater your savings likely will be.

5. Find friends to split the cost with you: With vacation rental properties, you have the option to book an entire home. If you can find another family or friends to travel with you, you might pay less for a big home once you split the cost than if you booked a property just large enough to accommodate your family.

You’ll gain access to extra amenities like multiple bedrooms, larger kitchens, game rooms, or private pools that smaller rentals might lack.

Vacation rental properties can offer excellent value, especially for families and groups looking for extra space and amenities. By planning, being flexible with your travel dates, comparing listings and considering options slightly off the beaten path, you can enjoy a memorable trip without overspending.

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California lawmakers are considering taxing short-term rentals (think Airbnb and Vrbo) to help fund affordable housing initiatives. The proposed tax measure comes as insurers Allstate and State Farm pull back on new business in California, and the Golden State struggles with a housing crisis fueled by supply and demand challenges and a lack of affordability.

Bill sponsor state Sen. Monique Limón (D-Santa Barbara) told local news outlet CalMatters, that she is often asked by local cities and counties about affordable housing.  Limón says people wonder “Where is the money to build the housing?” 

Whether the short-term rental tax will become a reality remains uncertain. The bill (SB 584) passed the California Senate but would need two-thirds approval of the state Assembly.  

• Many state policymakers acknowledge the housing challenges in the state. But the question of how to fund affordable housing (specifically whether this new tax is the best way forward) will be debated. 
• Over the years, various bills have been proposed in California to regulate online vacation rental companies and owners of vacation rentals.

California's proposed Airbnb, Vrbo affordable housing tax

The proposed California tax would be 15% on the rental price for short-term rentals (i.e., properties rented for less than 30 days). If passed, the tax would take effect in 2025. Proponents estimate the vacation rental levy could bring in $150 million in revenue a year. Those funds would be used to create more housing in California for people with lower and middle incomes to afford. 

Creating more housing could include repairing and upgrading existing housing units to accommodate Californians with low and middle incomes. Funds generated from the short-term rental tax could also help build new housing. Those projects could potentially funnel through grants to nonprofit organizations.

Another California tax?

The proposed 15% tax would be on top of existing city and county occupancy taxes that currently range from 10-12%. The two taxes together could potentially strain some owners of short-term vacation rental units. Some “hosts” profit on their rentals only to the extent that they can remain competitive with rates offered by California hotels.

Opponents of the bill have reportedly argued that a tax on short-term rentals like those offered through Airbnb and Vrbo would hurt California tourism. Airbnb and Vrbo would rather see alternatives to their hosts paying additional taxes.

California housing crisis

The need for stable, affordable housing in California is well-documented. The Public Policy Institute of California (PPIC)  reports that as of last year, 30% of all people experiencing homelessness in the United States resided in California. The organization cites data showing that homeless populations in the state are rising and the challenges are most significant in California's large cities. 

Likewise, data from the National Low Income Housing Coalition confirms that some of California's high rates of homelessness are due to a significant affordable housing shortage. 

• To afford a two-bedroom rental home at fair market rates in California, a family would need to make about $81,133 a year. But on average, a family of four with low income in the state makes a maximum of about $29,350 a year. 
• At last count, according to the Coalition, there were close to a million fewer homes available than are needed in California to house families with low incomes. 

High living costs and inflation in the United States don’t help. Families with middle and low incomes must sometimes choose between paying rent each month and affording necessities like healthcare services and food. Adding to the homeownership challenges in California, State Farm, and Allstate recently announced that they will no longer issue new home insurance policies in the state. That change could impact already high prices for housing and home insurance in California.

Additionally, in a survey conducted earlier this year by the PPIC, one in three Californians said that housing costs would make them “seriously consider moving out of the state.” Notably, recent IRS migration data bear that out. In the last couple of years, California lost residents and billions of dollars to states with lower taxes and perceived lower cost of living overall. 

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Airbnb announced this week a new product: "Rooms." Now, when you search for a place to stay on the platform, there's a filter to look for a single room that you can rent out. 

That's right: just a room within a larger house or apartment.

While I can see it would be a good deal financially to rent a room rather than a full apartment or hotel room, it's worth using this as a moment to think about how we choose to spend our money. Is it always worth saving for the sake of saving, and how do we put a price on feelings of comfort and safety? 

Airbnb had always allowed for listing single rooms, this just makes it a more obvious filter that the company hopes customers will buy into. It's also a way to take it back to the company's roots, according to the Associated Press, since the founders started by taking in guests to pay rent in their apartment. 

This is seemingly in part a reaction to rising prices on the rental platform. Nightly rates on Airbnb went up 36% since 2019, The Points Guy reported in February, outpacing increases at major hotel brands like Hilton and Marriott. The average cost of a room, Airbnb said Wednesday, is about $67 per night. 

The company pitched it as a boon for solo travelers, according to Gizmodo, to better get to know a place they're visiting, as well as for Gen Z travelers. 

Why I'm not buying Airbnb's new offering

I've long been an Airbnb skeptic — especially after a host canceled on me a week before my sister's bachelorette party and we had to scramble to find a place to host a dozen friends. It's been almost a decade since then and the offerings haven't won me back. 

For instance, there was the time I traveled with a group for a wedding and arrived to find the second bed in the apartment we booked was really a large couch. And then there were all the times I chose not to stay at an Airbnb: times when the prices were too high, rules too restrictive and listings too questionable to be worth it over a hotel. 

I've had some good times in Airbnbs, sure, but the good times always come with wariness that something will go wrong.

When it comes to renting a room by itself, that wariness gets amplified. As a woman, particularly if I am traveling alone, I value both actual safety and the feeling of it. That's part of what I value in hotels — there's a safe anonymity and the comforting feeling that there are always lots of people around in case something goes wrong. There is also, in hotels, the promise of knowing what you'll get. With renting a room from a private lister, you won't really know till you get there. 

Airbnb has absolutely instituted good new safety rules and measures in their platform. For example, with the Rooms product, you can see whether the bedroom door locks and if a bathroom is private or shared. You can also find information about who else is possibly at the property and what shared spaces are there. 

But this is where I'll show my age: I'm not a Gen Zer. One of the many benefits of aging, and both earning more and having more savings, is that I can pay for a whole hotel room, and all the amenities and comfort that come with it, without getting too anxious. It's the same rationale I tell myself every time I pay an extra $40 to not have to take the 5 a.m. flight: I'm a grown woman. I didn't save this money (shout out to high-yield savings accounts and easy ways to invest) for it to just keep earning more interest. 

And so I say power to the youth trying out Airbnb Rooms as a way to affordably see the world — you just won't see me there anytime soon. 

Even before Uber upended the taxi business and Airbnb disrupted vacation rentals, the idea of peer-to-peer lending was meant to give individuals alternatives to traditional consumer sources of credit, both as borrowers and investors. But the fintech market is continuously evolving. We’ll catch you up on what’s happened to the concept, and how (and whether) you can invest or borrow from a digital lender.

Most of the firms that started out as online platforms to connect consumers who wanted to borrow money with individual investors who financed loans, also known as peer-to-peer lending, now primarily partner with larger financing sources, like banks and hedge funds, using their artificial intelligence tools to evaluate creditworthiness. Other players have exited the business or had regulatory problems. As the business model continues to grow, it’s also being called marketplace lending or fintech lending.

These days, individual investor funding of digital loans has been dwarfed in the marketplace by larger sources of funds, according to Nimayi Dixit, fintech analyst for S&P Global Market Intelligence.

Still, opportunities for individual investors to fund peer-to-peer lending remain, although as with any investment, you’ll need to do your due diligence. Likewise, borrowers should shop around to determine where they can get the best terms, whether from a fintech platform or elsewhere.

How Fintech Loans Work

Dixit defined digital lenders in a report as “nonbank lenders that offer loans to consumers or businesses through digital channels. These lenders have unique funding models with liquidity provided by investors, credit facilities, securitizations or balance sheet cash.”

According to the U.S. Government Accountability Office, most fintech lenders now use a model in which loans originate through bank partnerships that enable the lenders to operate through bank charters rather than state lending licenses. This enables them to charge uniform interest rates nationwide and avoid state lending limits.

Then the fintech lenders purchase these loans from the banks and sell them to investors or keep them. A small number of fintech lenders originate loans directly and have lending licenses from multiple states. Dixit said not much lending is truly peer-to-peer anymore, meaning individual investors are just a small part of fintech lending.

To give an example, one prominent fintech lender, Prosper, funds about 91% of its loans through what is called its “whole loan channel,” or retail sources of funding, while less than 10% of the funds are from what they call the “notes channel,” Dixit noted. In 2020, the company may have had about $1.5 billion in loans, of which $1.4 billion was funded through the whole loan channel, he said. Peer-to-peer lending “is not a growing segment,” Dixit said, “at least not among the major players.”

Dixit noted this is even true in the United Kingdom, where regulators tried to foster peer-to-peer lending by treating it as a separate regulatory category and even creating a vehicle to encourage it as a retirement investment.

Digital Lending is Growing

According to S&P Global, “Major fintech players have attracted massive capital and added new financial services product lines and features aimed at further entrenching customers to grow market share and improve profitability. Fintech companies in the U.S. attracted nearly $7.5 billion in venture capital funding in the second quarter of 2021 across 194 transactions, up nearly 70% year over year. “The broader marketplace is still strong, but it tends to be dominated by the institutions, rather than the investors,” Dixit said.

The U.S. Government Accountability Office attributes growth in the fintech lending industry to several factors:

• Technical innovations like using new data sources enable them to improve response times, hasten loan approvals and facilitate funding.
• They can cater to unserved market segments, like people who need smaller loans for businesses or people with limited credit histories who may not be able to get what they need through traditional banks.
• In some instances, they may provide loans at lower interest rates than banks for debt consolidation, credit card debt and payday loans.
• Institutional investors are increasing, expanding the funding available for loans.
• Less regulation may provide a competitive advantage because they do not face the same requirements about capital or examinations. This also brings risks to the market and may change as some in Congress have moved toward increasing regulatory scrutiny on the industry.

Ted Rossman, senior industry analyst at Bankrate.com, described marketplace lending as a “niche market” that has stabilized after a somewhat bumpy start.

Digital Lending and the Pandemic

The pandemic appeared to slow the growth of fintech lending, at least early on. ”During the pandemic, this kind of lending declined initially as consumers stopped borrowing,” said Laura Udis. small dollar marketplace and installment lending program manager at the Consumer Finance Protection Bureau. Udis stressed her information was based on third-party data as CFPB doesn’t directly track this kind of information. “I don't think we have a good sense in the last two years of what the true impact will be."

She noted, however, that this “was a really fast growing market up through 2019.”

But the market rebounded in 2021 and reached levels higher than before COVID hit, according to a report Dixit did for S&P Global Market: “Personal-focused digital lenders originated an estimated 37% more in loans in 2021 relative to 2019. A healthy consumer credit environment, rising consumer demand and waning consumer stimulus created healthy demand for consumer credit. Personal-focused lenders were able to grow into this favorable environment without facing some of the headwinds that (small and medium-sized enterprise lending) and student-focused lenders faced.”

In 2021, the report noted, lockdowns eased and government stimulus waned as consumer spending increased. This led to a spike in demand for credit.

Some Fintech Lenders Run Into Trouble

Lending Club, which pioneered the market in 2007, is out of the peer-to-peer lending business, pivoting toward more traditional financial services after it acquired Radius Bank last year. That followed a controversy in 2019 in which Lending Club paid $2 million in penalties to the Justice Department and the Securities and Exchange Commission to resolve allegations it misrepresented whether borrowers met credit requirements.

Then, in 2021, Lending Club was ordered by the Federal Trade Commission to return more than $10 million to more than 15,000 customers who were charged undisclosed fees. The company agreed to pay a total of $18 million to settle the FTC’s charges. Another digital lender, Avant, was ordered by the FTC in 2019 to return more than $2.7 million to customers who lost money because of “unfair and deceptive loan servicing practices.”

Is Peer-to-Peer Lending a Smart Investment?

If you choose to put money into Peer-to-Peer lending, your rate of return will depend on several factors, including the credit ratings of the borrowers you select for your investment. The primary major player in the market now is Prosper. (Other players include Upstart, Avant and Marlette.) Regarding investors, “Prosper says nobody who’s made more than 100 loans on their platform has ever lost money,” Rossman said.

The average return, Rossman added, is a little more than 5%. However, if you decide to invest in loans to people with riskier credit records, you could see a return of more than 14%. “It’s clearly not for everybody,” Rossman noted. But he said investing this way may appeal to some people’s “altruistic” side by offering a way to directly help other consumers.

“I would not advise putting more money than you can afford to lose into one of those peer-to-peer investments,” Rossman said. But it’s worth considering if you want to further diversify your investments and appreciate the reward of helping individual borrowers, Rossman said.

Viktoria Krusenvald, Financer.com Ltd finance manager, was more bullish on P2P investing. It’s, she said, “a great way for beginners to get some investment experience and start thinking about their money in an analytical way. It's far less daunting than investing in stocks and most P2P platforms offer low minimum investment thresholds, giving every person a chance to think about their money and future. P2P can be somewhat of a starting point that helps people develop a money mindset and perhaps after getting some P2P experience, they're ready to dive into the stock market.”

Should You Borrow from a Digital Lender?

Rossman said digital and peer-to-peer loans are “definitely worth considering” as a borrower. But he said, “You’re probably not going to get the lowest interest rate.” He encouraged consumers looking for loans to shop around and include digital lenders in their menu of selections. Be sure to factor in loan origination fees when you’re making your decision.

“Different strokes for different folks,” Rossman said. “On the borrowers’ side, you're probably not going to get the best interest rate, but who knows?”

While staying at an Airbnb in the Hudson Valley last year, Kathy Corby, a retired physician, realized she would love to own a home there and share it as an Airbnb. She soon bought an 1890s Cape Cod with four bedrooms and two bathrooms in Saugerties, N.Y. Corby named it Lilac House after the huge, surrounding lilac bushes. She furnished the home with leftover furniture after downsizing into her Philadelphia condo and bought the rest on Black Friday. In early 2021, she hosted her first Airbnb guests and quickly earned the coveted status of Superhost. Lilac House is not only paying its own way, from mortgage to utilities, but also generating income. In her first nine months, Corby, 72, earned about $1,500 per month after expenses but before taxes. She spends about a week there every month. "I have my cake and can eat it, too," she says.

Airbnb is an online home-sharing reservation service that connects hosts and guests. The site offers advice and tools to create and manage a listing, whether a house or a single room. According to an annual survey of Airbnb hosts, about 25% are retirees. They use their earnings to pay for living expenses, home improvements and extended travel, like the host who shipped a Volkswagen bus to Europe and used it to tour the continent for five months. But make no mistake: As a host, you are running a business with all the risks and rewards that go with it. "Expect that this will be more work than you anticipate. It's NOT a get-rich-quick scheme! There is a lot of emotional, physical and financial labor that goes into hosting," says host Laura2592 in an online post.

Creating a listing is free, but Airbnb deducts a 3% fee from the proceeds of every booking. Airbnb charges guests as soon as you confirm their reservation, and you generally receive payment 24 hours after check-in, usually by direct deposit or PayPal. The interactive tool What's My Place Worth at Airbnb.com/host estimates your earning potential. Actual earnings will depend mainly on the demand for accommodations in your area, your nightly rate and availability, positive reviews and any municipal restrictions.

After each stay, guests can rate hosts with up to five stars and post reviews, or vice versa. Airbnb says the key to keeping guests happy is warm hospitality and an accurate listing that tells travelers what to expect. The company asks that you respond to inquiries and requests within 24 hours, accept them whenever you're available, avoid canceling on guests and maintain a high overall rating. The Superhost status goes to those who rate at least a 4.8 from 5.0 overall for the past 365 days of reviews, with minimum cancellations and rapid response times to guest questions or requests, among other requirements. Superhosts can charge higher nightly rates and earn more as a result.

During the pandemic, Corby and other nonurban hosts fared better than urban hosts, as cooped-up city dwellers looked for space where they could work and play. As travel rebounds, guests still want pet-friendly listings with wireless internet and remote workspaces.

The Legalities of Running an Airbnb

Before you begin shopping for luxury bedding, though, make sure you can create a short-term rental legally. Many cities have introduced tougher restrictions for short-term rental properties to protect their community's quality of life and housing market. Once you accept Airbnb's terms of service and activate a listing, you agree to comply with its policies and follow your local laws and regulations. Don't overlook the covenants, conditions and restrictions of your homeowner's association. If you violate those, the HOA could fine you or place a lien on your property, says Stephen Fishman, a lawyer and author for legal publisher Nolo Press.

Local governments typically require you to register your Airbnb, obtain a permit and a business license, pay fees ranging from $100 to several hundred dollars, and renew those annually. You may be required to pass an inspection and notify your neighbors of the rental. If you have unruly guests, you could incur citations, fines and the enduring wrath of your neighbors.

Make Your Airbnb Comfy

Carla Reissman, 65, of Arlington, Va., began hosting an Airbnb in her home after her husband, Ted Kennedy, 65, retired unexpectedly early. With two kids in college, the couple needed to supplement her income. They outfitted a spare bedroom on their first floor with furniture they bought on Craigslist (bed, beside table, lamp, reading chair, dresser and mirror) and reserved a nearby bathroom for guests in residence. With their master suite on the second floor, the couple preserved their privacy and that of guests. The kitchen was offlimits to guests, except to store their provisions in the fridge. Reissman provided guests with towels, bath soap, a Wi-Fi password and a cup of tea or coffee in the morning. "It was safe, clean, comfortable and not ugly," says Reissman, who has since stopped hosting to travel with her husband.

Airbnb shows hosts how to create a guest-friendly space, and new hosts can ask questions of Superhosts on Airbnb.com/d/superhost. Corby, however, felt that she learned more from two books: Airbnb for Dummies (Wiley, $19.99) and Optimize Your Bnb (OptimizeMy Bnb.com LLC, $14.99). Her many amenities include five ways to make coffee, a burr grinder and a supply of high-end beans. It's smart to test-drive your space by staying overnight in it yourself.

Lack of cleanliness is a top reason for a negative review. Airbnb requires a five-step cleaning and sanitizing process, which was developed in response to the pandemic and the standards of the pickiest guest, for whom one stray hair may be one too many. Corby once drove five hours in a snowstorm to clean her house between guests when her maid service couldn't make it.

Establish Rules for Your Airbnb

Decide how you'll check in guests. Reissman receives guests in person or hides a key when she can't. With a lockbox or electronic lock, you can have contactless check-in and change the combination or code between guests for security. Corby uses an Apple smart lock with a keypad at the front door.

Add house rules to your listing to avoid misunderstandings that could lead to poor reviews. Rules can address times for checking in and out; any restrictions for smoking, parties and pets; and health and safety reminders, such as masking and social distancing requirements. In the U.S., Airbnb performs background checks on hosts and guests, and you can also require that guests provide a photo of their government ID for verification prior to their stay.

For the inside skinny on anything Airbnb, visit Airbnb's Community Forum (community.withairbnb.com), Airhosts Forum (airhostsforum.com) and the Reddit Airbnb Subreddit (reddit.com/r/AirBnB).

How to Price Your Airbnb

You can charge whatever nightly rate you want but be realistic. Many guests choose Airbnb because it's cheaper than staying in a hotel. Reissman researched Airbnb prices in her area before charging $60 per night. Her rate attracts guests with modest budgets, including retirees, international students, as well as businesspeople living on a per diem. She figures she earned about $20,000 over 80 bookings in two years.

Airbnb suggests starting with a lower-than-average nightly rate until you glean a positive review or two. Airbnb's Smart Pricing Tool helps you match your price to demand, and you can set custom prices, such as a lower rate during the week and a higher one on weekends or during special events. Corby uses a subscription tool from AirDNA ($20 to $100 a month) that automatically optimizes pricing for her market. It recommends daily rates for up to a year in advance; rates rise with demand or fall to maximize bookings as the date of a special event nears. Corby's nightly rate has ranged from about $320 to $750.

You can add fees for cleaning and additional guests beyond a number you set. Airbnb also charges most guests a service fee of up to 14.2% of the cost of their stay (excluding Airbnb fees and taxes).

Pay Taxes on Your Airbnb Income

In many cities, Airbnb will collect and remit some of the local occupancy taxes for you.

If you rent out part or all of your home for more than 14 days during the year, you must report your rental income and expenses on Schedule E of your 1040, with income taxes owed on any profit. Airbnb will report to the IRS how much rental income it collected and paid you annually. You can deduct mortgage interest, property taxes, maintenance and other ownership costs for the portion of the property rented out. Because that portion of your state and local property taxes won't count toward the $10,000 cap on state and local taxes, you may be better off itemizing deductions.

As long as you don't provide substantial services to your guests -- such as breakfast, fresh linens and room cleaning during their stay -- you won't be considered self-employed and won't need to pay the 15.3% selfemployment tax. For more information, see Every Airbnb Host's Tax Guide, by Stephen Fishman (Nolo Press, $19.99). Consult your tax adviser, too.

Check Your Homeowners Insurance Coverage

Airbnb provides up to $1 million of Host Protection Insurance to cover liability claims for injury to a guest or property damage to their belongings. Its Host Guarantee ostensibly provides protection for every booking at no additional cost, of up to $1 million in property damage. But don't rely on those protections alone.

Ask your home insurer about what property damage and liability coverage it offers for short-term rentals by paying guests, which could be excluded as a business activity. "Make clear how often you plan to rent out your home, whether you'll be at home while renting, and how many people you'll be hosting," says Fishman. Your insurer may cover home-sharing up to certain limits as a standard endorsement or you may need to buy a supplement. Corby purchased home-sharing coverage from Proper Insurance for her home, its contents as well as the business liability and income it generates.

Overall, hosting has been a positive experience for Corby and Reissman, who have met people of different nationalities and even made new friends as a result. "If you think about hosting only as a monetary transaction, you might be disappointed," Reissman says.

Corby recalls a couple of guests who disobeyed all the house rules, smoking inside and leaving debris on the floor, the child who drew tic-tack-toe and his initials into a new leather couch and the guest who texted constantly while Corby was vacationing four time zones away. Reissman had guests who left hair dye in the bathroom sink and sex toys under the bed. You may have to be available at the most inconvenient times and sacrifice your use of the property to guests. Corby hoped to spend leaf season in the Hudson Valley, but by mid-August, guests had booked every opening. Christmas week at Lilac House, however, has been reserved just for her family.

Who: Kelsey Erwin

What: Pharmacist and Airbnb host

Where: Colorado

When did you first become an Airbnb host?

I acquired the property I now rent out in 2020 and became a host in June 2020, so I was kind of challenged with kicking off my Airbnb in the middle of the pandemic. It was something I had been wanting to do but didn’t quite have the time. And then when the pandemic hit and we were all mostly quarantined, I found myself having more time. So I started to look into options for where I’d like to set up an Airbnb and what the Airbnb host role would require me to do.

Where is your property?

My rental is in Colorado, in Grand County. It sits on a small local ski resort, but it is also near to both a larger resort, Winter Park, and Rocky Mountain National Park. The experience for guests when they visit my rental very much pertains to nature and being outdoors and being adventurous. I wanted the inside of my rental to have not only a mountain vibe but also a modern vibe.

How are bookings doing?

It’s still too far in advance to say for the upcoming winter season, but I would consider it very successful. In Colorado we have high season and low season, and during high season it has been booked nonstop. During low season there are fewer guests but still a decent amount of bookings.

Why do you think that a rental like yours has done so well during the pandemic?

People have wanted to be outdoors and away from others during COVID. And there are a lot of outdoor activities where my rental is located.

How much time do you spend each week managing it?

It depends on the number of bookings and any maintenance required. In a slow month, only an hour or so a week; in a busy month, I can expect to spend an extra hour or two a week on management. I hire a cleaner for my bookings, so that cuts back on the amount of hands-on time for myself.

How much can you earn from your property?

Earnings depend on the season and the month. It has only been a little over a year since I began hosting, so I don’t have the full picture yet. I charge between $185 and $250 per night. Winter and summer months have shown the most bookings so far.

The pandemic slowed travel and set restrictions. How did that impact hosting?

Individuals who wanted to book stays weren’t looking quite as far out as they had previously because they didn’t know what the COVID restrictions might be. Also, the pandemic shifted the clientele; it seemed there were more road trips and more “stay­cations,” rather than people flying in from out of state. It left uncertainty about whether I would have income for that month. Also, Airbnb outlined enhanced cleaning protocols. Once we received those, I was able to relay that information to cleaners, interview the ones I wanted to clean my condo and make sure that they were abiding by all the enhanced guidelines.

Did things improve when travel restrictions started to ease?

Yes. And after vaccines became available, I could see a shift where people felt more comfortable traveling.

Would you recommend hosting?

I think it’s great. It would be different for each individual, whether someone might have the time to manage it or not. For me, it’s a little bit of a distance from my primary residence in Denver, and I have to interview and coordinate cleaners. But it’s something that I wanted to test out to see if I could run an Airbnb on my own. And what I really wanted to do was create a place where I would want to stay if I were an Airbnb guest and offer that experience to others.

When the pandemic shut down travel in March 2020, Lew Moore gave up the lease on his Nashville, Tenn., apartment, which he had been renting out as an Airbnb since getting married a few years earlier. Moore, 51, sent a message through the apartment building's secure portal and figured he would lose his deposit and that would be the end of it. But a few months later, a debt collector called, claiming he owed $3,000 even though his $1,400 apartment was on a month-to-month lease. "There were all these fees, and none of that was in the lease," he recalls.

Moore contacted a consumer law firm, Sue the Collector, which successfully sued the collection agency for violating his rights. The debt was vacated, and he received a $1,000 check for damages. "They were trying to collect a debt in an improper manner. They were trying to collect a debt that wasn't owed," Moore says. "There were several strikes against them."

In the aftermath of the pandemic, a wave of bad debts and associated illegal collection practices is building. "Debt collection lawsuits are exploding right now," says Jarred Dean Johnson, founder of Sue the Collector, based in Franklin, Tenn. "In the next two years, we're going to be swamped." Marc Dann, a Cleveland-based consumer attorney and former Ohio attorney general, is preparing for the onslaught by training consumer lawyers all over the country. "The chaos that's going to follow the COVID experience is going to require an army of consumer protection lawyers," Dann says.

Debt buyers purchase old debt from the companies that consumers originally did business with, often for pennies on the dollar, and aggressively seek repayment. In 2020, the Federal Trade Commission recorded 82,700 consumer complaints about debt collection, up 10% from the previous year.

Federal law stipulates what collectors can and can't do in pursuit of a debt, lines that some collection agencies cross. For example, under the Fair Debt Collection Practices Act, they can't harass, threaten you or lie, and they can't spread false credit information about you or engage in other unfair practices. If a violation of the law is proven in court, individuals can collect up to $1,000, along with compensation for their attorney's fees and actual damages.

Know Your Rights

Even if you do owe money, debt collectors must notify you and provide information about the debt and your rights to dispute it. If you don't recognize the debt or believe the amount is wrong, you have 30 days to dispute the claim after a collection agency notifies you. Always do so in writing by certified mail, says April Kuehnhoff, a staff attorney at the National Consumer Law Center. The Consumer Financial Protection Bureau lists sample letters to debt collectors that you can use. "The worst practices we hear about are people collecting what we call phantom debts, accounts that don't exist. They say, 'If you don't pay me, then the police will show up at your door or immigration will show up at your door,'" Kuehnhoff says. "That is a real red flag that you may be dealing with someone who is a fraudulent actor and perhaps not even a real account."

Collectors can't call before 8 a.m. or after 9 p.m., misrepresent themselves or use abusive language. They can't send a recorded message to your cellphone without your permission or autodial your land line if you're on the do not call list. If you ask them in writing to stop contacting you about a debt, they must comply. Unless debt collectors don't know how to reach you, they can't contact a third party, such as an employer or family member. Collection agencies can't tell a third party that you owe a debt, send you a postcard or mail letters in an envelope marked to indicate debt collection. Any single violation of these restrictions could entitle you to statutory damages up to that $1,000 limit.

A growing problem is collectors pursuing debts that are barred from collection because of state statutes of limitation, which can vary from three to 10 years. If you make a partial payment on a debt that's too old to collect, you risk restarting the clock. Collectors may trick you into doing that by offering to "settle" an old debt. "The word 'settle' is closely related to lawsuits. It carries with it the idea that you can be sued," says Kuehnhoff, who adds, "This can all be very misleading for consumers."

Be skeptical of calls and emails from collectors, says Dann. "Ask for verification of that debt before you even consider making payment on something that was overdue," he says.

A consumer attorney in your state can advise you about the statute of limitations or possible violations of federal law and will take cases on a contingency basis. You can find someone through the National Association of Consumer Advocates and learn more from the National Consumer Law Center.

Most important: Don't ignore anything from a court about a debt because if you fail to respond or show up as required, you risk a default judgment against you. Michigan prosecutors in April charged three lawyers with fraud for allegedly falsifying documents to show that process servers had contacted debtors, when in fact they hadn't been notified of upcoming court dates. Before these bad actors were charged, they won judgments worth more than $1 million against 1,000 people, prosecutors say. "Debt collection companies have found that it's much easier to collect from a debtor who doesn't show up in court; they can garnish your wages, have a sheriff seize your car," Johnson says.

Death and Debt

Heirs and executors should also be wary of anyone seeking to recover losses from an indebted, deceased family member. "The debt collectors will routinely call the spouse and say you have to pay all this," Johnson says. Chances are it isn't true. "Debt collectors lie. They love to collect debts no matter who owes them."

Collectors may prey on your sense of obligation for a deceased family member, says Dave Philipps, an attorney based in Palos Hills, Ill. "The elderly are particularly susceptible because they believe it's some moral failing on their part that they can't pay their debts," Philipps says. People should not feel that way, he says. "There's not a moral component to debt. It's dollars and cents."

If your spouse dies, a joint checking account becomes your property, and joint debts become your obligation. But loans, credit cards and other debt obligations held only in the deceased's name are a different story. "The only time the widow has any obligation to pay the debt is if she is co-responsible for the debt," he says. "You can tell them to file a claim on the estate."

If you're the executor for a family member's estate, it falls on you to administer all claims against the estate, including old debts. Your family member may have racked up extensive medical bills or other end-of-life expenses, and those creditors rightly have a claim against the estate's assets. Once those assets are exhausted, however, it's unlikely that you'll be personally responsible for those obligations unless you co-signed on the original loan.

An exception is the doctrine of necessaries, a legal principle that holds someone responsible for essential living expenses a spouse incurred. "There can be different rules in community property states as well," Kuehnhoff says. Executors should be skeptical and ask lots of questions if they're approached by someone about this, she says, although the claims "can be tricky to figure out."

Assets that are not part of the estate, such as irrevocable trusts and qualified retirement accounts with a named beneficiary, for example, are generally off limits to creditors. "Life insurance is not available to creditors for payment of debts of people who passed away," Dann says. "If your house has a right of transfer on death, that automatically vests in the heir's name. That's not available to pay debts unless there's a judgment lien on the house already."

Never make payment arrangements over the phone, no matter how official or threatening someone sounds or the pressure tactics they use. Keep good records of phone conversations, consult experts and above all, make decisions about repayment when you're in the right frame of mind. "There are a surprising number of really powerful consumer protection laws that are available to everyone in the country," Dann says. "You're not just at the mercy of someone trying to collect money from you."

Stocks closed mostly lower on Thursday, as talks for another round of economic stimulus sputtered and jobless claims spiked.

Weekly applications for first-time unemployment rose 137,000 to a seasonally adjusted 853,000. Economists were looking for claims of just 725,000. The surge in applications suggests that the recovery in the labor market has stumbled amid renewed COVID-19 restrictions.

"Initial and continuing jobless claims posted larger-than-expected increases, with initial claims surging to their highest level in two months," said Michael Gapen of Barclays Research. "Their rise broadly coincides with increased restrictions put in place by many states to offset rising COVID-19 cases."

Happily, it wasn't all bad news on the pandemic front. Although Democrats and Republicans remain at loggerheads over additional stimulus, investors were able to take heart in the Food and Drug Administration's meeting to weigh the risks of the experimental COVID-19 vaccine developed by BioNTech (BNTX, +5.5%) and Pfizer (PFE, -0.3%).

By session's end, the blue-chip Dow Jones Industrial Average fell 0.2% to 29,999, while the broader S&P 500 slipped 0.1% to 3,668. The tech-heavy Nasdaq Composite perked up with a 0.5% gain to close at 12,405. Other action in the market today:

• The small-cap Russell 2000 rose 1.1% to 1,922.
• U.S. crude oil futures gained 2.6% to finish at $46.91 per barrel.
• Gold futures settled at $1,835.50 per ounce, a 0.9% improvement.

Airbnb Demand: A Sign of 2021 Recovery Hopes?

Thursday's biggest star, however, was Airbnb (ABNB +113%), which soared in its stock market debut. The home-sharing network raised $3.5 billion in its initial public offering, making it the year's third-largest IPO.

When a stock goes public, it's often taken as a sign of confidence.

Given that 2021 already has no shortage of IPOs, it's fair to say that confidence is in good supply on Wall Street. Consider what Airbnb tells us. The travel sector has been trashed by the pandemic, but investors are clearly bullish on a rebound in hospitality, travel and leisure next year.

Recovery will be the market's main theme in 2021, and there are a host of ways to play it. With that in mind, have a look at the 21 Best Stocks to Buy for 2021, a list that offers exposure to everything from financials to floor scrubbers.

Airbnb's long-awaited initial public offering (IPO) is finally here.

The vacation rental company's offering, which hit the markets Thursday, is one of the hottest IPOs of the year, with many investors having waited years to get involved with one of travel's biggest names.

Read on as we tackle everything you need to know, including Airbnb's pricing, potential bullish catalysts and remaining hurdles.

Airbnb IPO: Quick Details

• About the company: Airbnb is an online marketplace for lodging, primarily used by people renting out their homes. Airbnb says it has more than 4 million hosts offering a wide range of experiences, from private single rooms in city downtowns to entire luxury villas on exotic islands. These stays are highly flexible, too, lasting anywhere between one day to several months.
• IPO date: Thursday, Dec. 10
• Valuation: $47 billion
• Listing price: $68 per share
• Fundraise amount: $3.7 billion
• Airbnb ticker: ABNB
• Exchange: Nasdaq
• Primary underwriters: Morgan Stanley, Goldman Sachs

The IPO That Almost Wasn't

The Airbnb IPO should cap an incredible turnaround from an existential crisis just months ago.

The COVID-19 pandemic hit much of the American economy, but perhaps no industry was hit as hard as travel. Revenues plunged across the board, from airlines and booking companies to restaurants and hotels.

Airbnb was no exception. Revenues for the nine months ended Sept. 30, 2020, sank by 32%, with most of the damage coming during the first and second quarters as site activity quickly dried up.

The company was forced to cut costs wherever it could. Airbnb laid off 25% of its global workforce, reduced executive salaries and slashed its sales and marketing budget, which dropped by 54% during 2020's first nine months.

Airbnb also scrambled to gather up $2 billion in debt financing in April via a pair of billion-dollar offerings just about a week apart.

But perhaps Airbnb's most important move was a business repositioning. That is, it pivoted to better cater to millions of Americans who suddenly wanted to focus on more domestic, close-to-home travel. From a June Airbnb post:

"Since the pandemic began, the percentage of bookings made on Airbnb within 200 miles, a round trip travelers can generally complete on one tank of gas, has grown from one-third of all bookings in February to over half in May."

But Airbnb finally looks like it's getting back on its feet.

2020's plunge in revenues included an 18% year-over-year decline during the third quarter. Nonetheless, Airbnb managed to post a profit of about $219 million – a rarity among technology IPOs.

In fact, that third quarter was even better than it might seem at first blush. During Q2, sales had plunged 72% to $335 million, and its net loss ballooned by 94% to $576 million. In other words, Q3's numbers represent a considerable turnaround.

Resiliency isn't a new look for Airbnb. The company's founders tried (and failed at) several businesses before coming up with the home-sharing concept … during the Great Recession. Airbnb also has dealt with a variety of crises, including PR hits from a string of home vandalizations, as well as multiple governmental actions slowing the company's business.

But Airbnb's leadership has seemingly always found ways to not just survive, but thrive.

The Bull Case for ABNB Stock

Whether you decide to buy the Airbnb IPO ultimately comes down to your own risk appetite and investing horizon. But we'll help you better understand some of the bullish and bearish drivers that will be pushing and pulling on ABNB stock.

Let's start with the pros:

• The Marketplace: As of Sept. 30, 2020, the company reported 7.4 million available listings, 5.6 million of which are considered active listings. That scale is more of an advantage than you might realize: Airbnb's marketplace has strong network effects, in that the more people who use it, the more powerful and useful its platform becomes. It's a trait shared by several leading online operators, including Facebook (FB), Alibaba (BABA) and eBay (EBAY).
• Organic reach: The company says that during the first nine months of 2020, 91% of all traffic to Airbnb comes through direct or unpaid channels.
• Economic improvement: Any advances against COVID-19 – specifically, potential vaccines from the likes of Pfizer (PFE) and BioNTech (BNTX), Moderna (MRNA) and others – are expected to be a boon for the entire travel industry, Airbnb included
• Market opportunity: Airbnb estimates the size of its total addressable market is a staggering $3.4 trillion. This includes $1.8 trillion for short-term stays, $1.4 trillion for travel experiences, and $210 billion for long-term stays and $1.4 trillion for travel experiences. There's plenty of room for multiple operators.
• The "Google" effect: Airbnb is beginning to become Google-fied, in that the word "Airbnb" is becoming a top-of-mind way people describe this new form of vacationing, even when they're not actually using Airbnb itself.
• The experience: Airbnb's service allows for more compelling experiences than the ordinary hotel room. It's described well in the S-1: "Instead of traveling like tourists and feeling like outsiders, guests on Airbnb can stay in neighborhoods where people live, have authentic experiences, live like locals, and spend time with locals in approximately 100,000 cities around the world."

The Bear Case for ABNB Stock

ABNB shares will face several risks, too, including:

• Legal uncertainty: While renting out one's home has been normalized thanks in large part to Airbnb, it's still not a settled area from a legal standpoint. And the powerful hotel industry lobby has been aggressively working to get municipalities to enact strict regulations against these kinds of home-renting services.
• Risks to hosts and guests (part 1): Hosts and guests alike take on numerous risks in these home-renting transactions. Airbnb admits that "there have been shootings, fatalities, and other criminal or violent acts on properties booked on our platform," as well as "sexual violence against hosts, guests, and third parties," and "undisclosed hidden cameras at properties." A growth in such issues could deter hosts from continuing to engage with the platform.
• Risks to hosts and guests (part 2): In many cases, hosts have made claims seeking compensation for a number of the violations committed against them and their homes. "These claims subject us to potentially significant liability and increase our operating costs and could materially adversely affect our business," the company writes.
• "Not in my backyard" (NIMBY): Some homeowners, landlords and home associations still are actively trying to ban services such as Airbnb.
• Competition: Airbnb must contend with online platforms such as Booking Holdings (BKNG), Expedia (EXPE) and Trip.com. It even faces competition from search engines and meta-search sites, including Google, Baidu (BIDU), TripAdvisor (TRIP) and Trivago (TRVG) that control huge amounts of web traffic. There are also competitors similar to Airbnb, such as Vrbo and Expedia's HomeAway. And of course, there's an entire hotel industry to deal with.

If you're a homeowner looking to rake in some extra money, whether to fund a much-needed renovation or to afford a much-needed dream vacation, don't dismiss using your house as a means to generate additional income. We're not talking about the typical work-from-home business opportunities that were commonplace years ago, either. No hours spent stuffing envelopes on your couch here.

Our round-up of money-generating opportunities for homeowners range from the off the beaten path (renting out your home for a film shoot) to the tried and true (tapping into your home’s equity). Check out all of them and decide for yourself which ideas are right for you.

Why pay for a house sitter when someone will pay to stay in your home while you’re away on vacation. Renting out your home through sites such as Airbnb.com, FlipKey.com and HomeAway.com is a relatively easy and reliable way to earn some additional income. For each site, you'll need to register to create a free listing that travelers in search of a place to stay in your area can view. You set the rental amount, dates of availability, as well as establish a refund policy in the event a renter decides to cancel the reservation. Airbnb and FlipKey charge a 3% service fee based on the rental amount for confirmed bookings. HomeAway charges 5%.

Keep in mind that some municipalities have restrictions on short-term rentals. Check with your local government before you list your property for rent. Note as well that condo, co-op and homeowner associations may have their own rules on short-term rentals. On the plus side: The rental income you collect is tax-free as long as you don’t rent out your house for more than 14 days per year.

Major cities including Washington, D.C., San Francisco and New York City are notorious for lacking ample street parking. Tourists looking to explore local hot spots, renters who don't have designated parking of their own and daily commuters are often left battling for metered parking spots during peak drive times or having to rely on overpriced and overcrowded parking garages. This is where your driveway or privately-owned parking space can turn into an income source.

When you’re not using it, you can rent out the space to those in need of hassle-free parking options through sites such as JustPark.com and CurbFlip.com. Both allow you to create free listings to rent out your parking spot at an hourly, daily or monthly rate. You’ll need to register to create a listing and link your bank or PayPal account in order to receive payment from renters. It’s important to note that those with parking that's close to public transportation or major attractions (stadiums, performance venues, trendy neighborhoods and such) will likely experience the highest demand.

JustPark charges a 3% fee on all short-term bookings. For long-term bookings (more than two consecutive months), the charge is 20% for the first month and 3% thereafter. CurbFlip charges 16% of your listed parking rental price for completed transactions, while PayPal (required to use CurbFlip) deducts an additional 3% from your rental payment.

Ever wonder how those iconic homes from some of your favorite television shows and films made it on screen? You know the ones we're talking about: The quaint North Hollywood rambler that housed the “Brady Bunch" or the infamous red brick Chicago McMansion from the "Home Alone" franchise.

If you think your place has the stuff that screen magic is made of, you may be able to cash in by connecting with location scouts for television and film productions. How do you get started? "Collect a few good pictures of your property and send them with your contact information to location scouts and film commissions in your area," says Jim Baldwin, owner of Baldwin Production Services, a San Francisco-based location scouting company that specializes in commercial media. Baldwin suggest searching online and contacting your state’s film office.

In California and New York, for example, the state film commissions maintain an online directory of vetted location scouting websites homeowners can contact. In Georgia and Maryland, the state film commissions encourage interested homeowners to submit images of their properties and contact information directly to them. Then, the film commission forwards this information to film production crews slated to shoot in the area.

How much money you can make? "Fees can range from hundreds to tens of thousands of dollars per day, depending on what and where the location is, how long [the home is] used and what the shoot entails," Baldwin says. However, make sure you’re really prepared to open up your personal space to this type of experience before committing to it in writing, advises Patti Brashears, owner of Featured in Films, a location scouting company based in the New York area that has worked with TV shows including NBC’s “30 Rock” and HBO’s “Boardwalk Empire.” The experience can be overwhelming for some owners, even though the home will be restored to its original state once the production ends.

Love animals? Apply to be a pet sitter through an online-based service such as Rover.com, which claims to have more than 60,000 sitters who provide in-home boarding for dogs only, its most popular service. Professional certification isn’t required, though you will need to undergo a background check. The site provides training resources, and sitters set their own schedules and prices (of which the site charges a 20% fee per booking). Rover sitters are considered independent contractors.

You can also try to pick up in-home pet sitting gigs by contacting local pet boarding providers. Each company will operate differently, so be sure to ask lots of questions upfront: Do you need to have a pet sitting certification? Do you need to be insured and bonded? How are reservations and payments handled? Rates will vary based on where you live. Care.com, a site that connects caregivers (for both pets and people) to clients, has a handy calculator that spits out suggested hourly rates for pet sitting based on your zip code.

If actual pet sitting in your home isn’t your cup of tea, consider creating a dog park on your property instead and charging space-challenged pet owners to use it. Look no further than Sniffspot.com, “the Airbnb for dog off-leash areas,” for help monetizing you lawn.

Sniffspot’s stringent procedures and safeguards include verification of pet vaccinations and flea prevention, screenings for aggressive dogs (they’ll be banned) and insurance against damage to your property. Pet owners are responsible for cleaning up after their dogs.

All types of properties are welcome to be listed on the site. The default starting price is $4 an hour per dog, but property owners can set their own rates. Sniffspot collects the funds and keeps 12%, plus a 10% marketing surcharge for hosts joining the site since July 2018.

You've got a closet full of clothes that you no longer wear, and there's that rice cooker that's been sitting in your kitchen pantry unused for years. Don't forget about all that baby gear that your kids no longer need that's collecting dust in the basement.

Instead of throwing out unwanted items the next time you declutter, consider selling them online at sites such as Tradesy.com and Poshmark.com for clothing and accessories items, or Gazelle.com for mobile devices and computers. There’s also the LetGo mobile app for household goods. The items you're looking to resell must be in good condition.

Here’s how it works: For Tradesy, Poshmark and LetGo, you'll need to create an account before posting a free listing to attract buyers. (Gazelle doesn’t require listings because you're selling your unwanted electronics directly to the site rather than to an individual buyer.) On Tradesy and Poshmark, the transaction process is done completely online with the seller shipping the sold items to the buyer. LetGo urges sellers and buyers meet in person in a public place to complete the transaction and to pay with cash.

Tradesy deducts a flat fee of $7.50 on all sales under $50 and takes 14.9% of the purchase price on items sold over $50. Poshmark charges a flat fee of $2.95 for sales under $15 and takes 20% of the purchase price for those over $15. LetGo doesn't charge users a fee; rather, it makes money off ads on the app.

Reverse mortgages allow older homeowners who are house-rich but cash-poor to borrow against the equity that’s built up in their primary residence. To qualify you must be at least 62 years old, live in the home and have already paid off most or all of your mortgage.

The only reverse mortgage insured by the federal government is a Home Equity Conversion Mortgage, or HECM. After meeting with a HECM counselor, you apply for a reverse mortgage through an FHA-approved lender. The amount you get depends on your age, current interest rates and the appraised value of the property. You can receive your money in several ways including as a lump sum, as fixed monthly payments or as a line of credit. There are limits on how much the reverse mortgage can pay out in the first year.

Be aware that a reverse mortgage isn’t free money; it’s a loan that must be repaid when the homeowner dies, sells the home or moves out. Meantime, property taxes and insurance premiums must be kept current. If you can’t afford to pay out of pocket to cover the costs associated with the reverse mortgage – such as origination fees and mortgage insurance premiums – they can be covered by the loan proceeds. However, financing the various closing costs will reduce the total amount of money you receive.

If you’ve been steadily paying off your mortgage for years while the value of your home has been on the rise, then you probably have a fair amount of equity built up. Under the right circumstances, it can be smart to borrow against this built-up value when you need cash.

There are two common ways to tap into your home equity: a home equity loan or a home equity line of credit. A home equity loan offers a lump sum that you usually pay back monthly at a fixed interest rate. A HELOC is a line of credit that your access only when you need the cash. Interest rates on HELOCs tend to be variable, meaning they might go up or go down over time. A third option is a cash-out refi, in which you receive cash back when you refinance your primary mortgage. A cash-out refi tends to have higher closing costs, plus you might lengthen the time it’ll take to pay off your mortgage depending on the new loan term you choose.

Think hard about how you’ll spend the money. As long as you use it to buy, build or substantially improve your home, Uncle Sam allows you to deduct the interest you pay on up to $100,000 of home equity loans or HELOCs. But use the money to pay for, say, a new car or a Caribbean vacation, and the interest is no longer deductible.

Unlike short-term rentals, renting out a spare room in your house on a long-term basis can create a predictable monthly income stream that can be used to pay off your mortgage faster. Putting an extra $250 a month toward a $150,000, 30-year mortgage at 5% would erase the debt 12 years early. Even an extra $100 a month retires the mortgage six and a half years early.

You’ll need to pay taxes on the rent you collect, but you may be able to write off some of the rental expenses such as insurance premiums and utilities. Tax software or your tax adviser can help you sort out the deductible amounts of certain expenses based on the portion of your home that’s rented out. Also, the IRS has an interactive tool that can help you determine if your rental income is taxable and your rental expenses are deductible.

Seek out roommates through word of mouth or place an ad on a site such as Craigslist.org. Looking at Craigslist and other classified listings for your area will also help you figure out how much to charge in rent. Bonus: If you live alone, a roommate can provide companionship as well as rent check.

For a twist on your next vacation, swap an ordinary hotel room for a rustic cottage along the banks of a secluded river, a tree house nestled at the summit of a volcano or an open-air villa on a private beach.

Websites offering short-term rentals put homes all over the world up for grabs, meaning you can access creature comforts while in unfamiliar territory, experience life as a local or spend a few nights enjoying luxurious amenities — such as an infinity pool overlooking the ocean — that would normally appear out of reach.

Because home rentals are scattered throughout residential areas, the sites can also be your only source of accommodations if you want to stay in the suburbs, sleep in a quiet neighborhood away from tourist zones or test-drive a retirement location.

The two big names in short-term rentals are Airbnb, which lists more than 7.7 million properties worldwide, and Vrbo, which offers more than 2 million.

Airbnb tends to pop up more often in urban areas and gives the option of bunking down in a private guest room (or even a shared room) while sharing common areas with the host. Vrbo is more popular in rural or traditional vacation rental spots.

But search both sites to cover your bases, as well as a number of other “alternative accommodations” websites for the full array of options.

Pattie Haubner and her husband, Jim, who live near Stratton Mountain, Vt., started traveling for long periods after he retired four years ago, choosing Airbnb and Booking.com rentals for trips to Australia, Malta, Sardinia and more. “There is nothing nicer than having your own apartment in Paris around the corner from a market,” Pattie says.

She has devised her own criteria when searching for rentals — for example, easy access to the main train station in a large city or a restored historic home with beautiful views in a small town. And despite a few snafus, she says, “most of the time, I am really pleased.”

But not everyone is as satisfied with their rentals as the Haubners. Ask travelers who often use home sharing services and you’ll likely turn up a few horror stories, such as last-minute cancellations by the host or filthy homes sprouting black mold, despite glowing reviews from other guests.

Whether you are gearing up to give a home rental a shot or you want to improve your stay, we’ve found ways to get the most out of your rental, from search tricks to troubleshooting a poor experience. Our advice is geared toward Airbnb and Vrbo users, but the strategies apply to many other short-term rental sites.

Hosts set their own cancellation policies, so if your plans could change, choose a rental with a flexible policy — or stick with a hotel. Unless you lock in a prepaid rate, hotels typically have more flexible cancellation policies than rentals.

And if a host cancels on you, the rental company will sometimes help you rebook, but pickings can be slim if you need a certain neighborhood and home size or if you’re traveling at a popular time of year. In general, short-term rental services place the onus on you to try to resolve the issue with the homeowner before turning to them for help.

Finding a Home Rental

Start your search with a destination. It can be as specific or broad as you like. You can search Airbnb and Vrbo by neighborhood, landmark, city, state and even by country. Although you can browse listings without plugging in dates, your results will only show an average or “lowest” nightly rate that could easily climb higher on weekends or holidays.

Keep an eye on the map next to your search results while you browse, and zoom in on any properties that interest you to make sure they are located in the neighborhood —and even the city — that you want.

The search radius will automatically expand to pull in listings from nearby areas, especially if there is not much available in the location or on the dates you choose, says Abigail Long, public relations manager of AirDNA, which analyzes short-term rental data. If you’re not careful, you could land on a property that is many miles from where you actually want to stay.

The initial set of results can be overwhelming, so the next step is playing around with the sites’ filters. You can narrow your results by price, accessibility, number of bedrooms and bathrooms, the ability to reserve a home instantly rather than wait for the owner’s approval, and suitability for business or family trips.

With Airbnb, be sure to check off “entire place” if you don’t want results that fold in private rooms (or shared rooms) with common spaces. You can also tailor your results on Airbnb or Vrbo by filtering for unique property types — such as cabins, farmhouses, islands, tree houses or yachts — as well as amenities such as air conditioning, a king-size bed, kitchen, Wi-Fi, pool or hot tub.

If you are coming up short on available rentals, clear your dates to see if more properties pop up. “Some hosts forget to update their calendars or may experience a last-minute cancellation, so reach out to ask if it’s available,” says Schlichter, of SmarterTravel.

Many properties are listed on both Airbnb and Vrbo, especially rentals run by professional property managers, says Long. Compare the cancellation policy, fees and damage deposit in case booking on one site ends up being a better value than another.

Scrutinize photos and reviews. Property owners may take liberties with the definition of certain features or amenities, so compare their listing write up with photos and reviews.

For example, a property may advertise that it “sleeps six,” but two of those people might be expected to sleep on an air mattress or a futon. If you don’t see photos of the promised number of beds or other important amenities, ask the owner about the discrepancy.

Only travelers who booked and stayed at a property can write reviews on Airbnb or Vrbo's website, but don’t take praise at face value. “Reviews are often extremely positive,” says Daniel Guttentag, assistant professor of hospitality and tourism management at the College of Charleston. “It’s partly psychological. When you’ve shaken a host’s hand or slept in his or her bed, it feels weird to critique the host’s home in a harsh way.”

Guests may save their criticisms for a private message to the host instead.

Skip the star ratings and read between the lines of reviews. Negative comments might be sandwiched between effusive compliments, or several people might allude to the same problem, such as highway noise.

Be wary of properties with brief, generic reviews that are not overly complimentary, says Guttentag. On Airbnb, look for automated postings in the review section that signal a host canceled on a guest.

Haubner, 58, also examines the headshots of reviewers, looking for travelers similar in age to her. “Older travelers will comment on the beds, stairs, cleanliness and neighborhood safety,” she says. She also looks for coded words or phrases that give her pause, such as “student neighborhood” or “not the cleanest.”

If a property is new and has no reviews yet, you might get a better deal as the owner tries to drum up business, but it’s a risk. See if the host mentions other properties he or she owns. Those might be reviewed online, and the reviews can provide insight on how the rentals are maintained.

The photos will usually show the property in its best possible light. Beware of fish-eye wide angle photos or skewed perspectives because they may be used to disguise a room’s small size, says Schlichter.

If the photo album shows a spectacular coastline or forest, “don’t assume the surroundings in the photographs are right outside the front door,” she says. You can ask the host how far you would need to walk to get to the scenic sights.

Or research the location independently. Erin Clarkson, a frequent user of Airbnb from Savannah, Ga., scopes out homes via Google Street View after noting the approximate location on the rental site’s map view. “You can tell a lot about a listing by viewing its surroundings,” she says. “It’s also a great way to see how close the rental is to restaurants, grocery stores and interesting shops.”

Haubner has her own trick for identifying clean, modern home rentals: Look for white bedding and new Ikea furniture in the photos. “It sounds silly, but I’ve found it works,” she says. “You can’t have dirty white bedsheets or stained white towels.”

Vet your host. Although instant booking is convenient, messaging homeowners with questions first is a good idea, if only to test their responsiveness. “Sometimes I’ll make up a question,” says Schlichter. “If they take five days to respond, what will they do if I lose my key and need instant help?”

Communicate through the booking platform’s messaging service rather than e-mail or phone so you and the company have a direct record of your interactions.

The safest bet is sticking to a “Superhost” on Airbnb or “Premier Host” on Vrbo. To earn these titles, homeowners must be active hosts who are responsive, get good reviews, and rarely or never cancel.

Beware of cancellation policies. Homeowners on Airbnb and Vrbo can set their own cancellation policies, which can range from “flexible” or “relaxed” (a full refund within a certain window) to “strict” (no refund or a partial refund in limited circumstances).

If the host cancels on you, you may or may not get help from the rental company to make alternative plans. Airbnb will offer a refund or a credit toward a new reservation.

Vrbo will help you rebook if the reservation is canceled less than 30 days from your stay and you can’t find a back-up option, but you’ll need to find your own replacement if the reservation is canceled further out than that.

If a host notifies you that your dates no longer work, make sure that they initiate the cancellation rather than you so that you’re entitled to a refund or credit.

Know the total price before you book. Cleaning fees, service fees and local taxes can substantially increase the cost of your reservation, and they can make a big difference between two rentals with similar nightly rates.

Guest service fees can be as much as 20% of the nightly rate on Airbnb and generally range between 6% and 12% on Vrbo. On both sites, you’ll typically pay a lower percentage on more expensive reservations.

Unfortunately, there is no easy way to make apples-to-apples comparisons. On Vrbo, you need to click on each listing to see the total price, inclusive of taxes and fees. Airbnb shows both the nightly rate and, in smaller type, the total price, including fees on your initial list of search results. But you still need to click on each listing to see the total price with taxes.

Always pay your host through the rental company. If you take the transaction offline, you won’t be eligible for protections against fraud, rebooking assistance and other safeguards. Use a credit card for extra protection.

Troubleshooting Your Stay

If you run into a snag after you arrive at the rental — maybe you can’t get into the building, the place is a mess, or your bedroom is located in a garage — contact the homeowner immediately. S

hort-term rental companies expect you to work with the host first before coming to them for help.

Keep as much communication as possible on the site’s messaging service so you and the company have a record. If you want to call the host, send a message before or after summarizing the conversation.

Include photos or videos of the problem as evidence. If the host is not responsive, loop in customer service for guidance on what to do next. And if you want a refund, you can’t stay the entire time or rebook yourself without notifying customer service.

Home-rental services will issue a refund or help you rebook under limited circumstances. Airbnb covers situations in which you can’t enter the home, you discover that your rental was misrepresented, or your rental is unclean, unsafe or contains a pet that wasn’t disclosed in advance. You must contact Airbnb within 24 hours of check-in (unless the issue crops up later).

Sometimes you can do everything right and still run into problems. Haubner and her husband booked a rental on the Greek island of Paros after reading positive reviews and checking out the location on the map.

When they arrived, they realized the home was on a highway and not on a beach, as it appeared to be in photos, and the front yard was filled with junk. “I told the owner that I wasn’t going to stay for five days, and that I would write a review and tell people what this is,” says Haubner. She sent photos to Airbnb to back up her complaint and eventually negotiated a refund of all nights but one.

You could also shoot a quick walk-through video on your phone when you arrive and before you leave as a precaution against disputes that may crop up later over the condition you left the rental, says Clarkson, who does that every time she rents a place. Even though she has never had a problem, “You’ll have proof if the owner claims you broke something that was already damaged upon your arrival,” she says.

After your stay, both you and the homeowner can write reviews about each other, but you’ll have limited time to post or edit your review. On Airbnb, you cannot delete a host’s review of you if you feel it was unfair, but you can post a public response. And if a user clicks on the profile photo next to your review, he or she can find reviews about you posted by hosts.

Houseboats, Tents and Yurts

If you’re looking for a specific type of short-term home rental, such as a kid-friendly property, or you simply want more options in different price ranges, it pays to look beyond Airbnb and Vrbo.

Booking.com is known as a hotel-booking site. But with 7.9 million “alternative accommodations” (including privately owned homes, chalets, farm stays and even igloos), it claims to have more than any other short-term rental service.

GlampingHub.com features more than 35,000 “unique” accommodations, including floating homes, safari tents and yurts. For additional listings, consider Kid & Coe for family-friendly homes, Misterb&b for LGBTQ-friendly hosts and Noirbnb for travelers of color.

Final thoughts on home sharing

Home- sharing platforms have transformed the way travelers find accommodations, offering everything from budget friendly stays to luxury retreats. Whether you choose Airbnb, Vrbo, or a boutique rental service, each platform has its own advantages and trade-offs.

Factors like cancellation policies, service fees and host reliability can really impact your experience, so it's essential to do your research before booking. No matter which platform you choose, reading reviews, confirming amenities and understanding the fine print can help ensure a smooth and enjoyable stay.

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• What To Take on a Plane for a More Comfortable Trip

How's this for a job description? Set your own hours, and work as much or as little as you like. Work from the comfort of your own home, or perhaps your vehicle. Use whatever you have to offer—whether it's professional expertise, an extra bedroom or simply your spare time—to earn some extra cash, stay engaged or try out new career paths.

That's the nature of work in the "gig economy," also known as the "sharing" or "on demand" economy, a world where online intermediaries connect independent workers with customers—and it's everyday life for a growing number of seniors looking to supplement their income. Older adults are driving for Uber, the ride-sharing service; renting out their spare rooms or vacation homes to travelers through Airbnb; and pet-sitting through DogVacay.

More than 400,000 seniors are now doing gig work through such online platforms, according to a recent study by the JPMorgan Chase Institute. Although the gig economy is often seen as the province of millennials, older on-demand workers are getting a greater share of their income from these platforms than younger people, the study found. On many gig platforms, the ranks of older workers are growing fast. A November report from Airbnb, for example, notes that the number of U.S. hosts age 60 and older climbed more than 100% over the previous 12 months, making them the fastest-growing host age group on the home-sharing platform.

With hundreds of online platforms focused on everything from ride-sharing to legal services, consulting and health care, there's a good chance you can find gig work that fits your interests and expertise. "There's something for everybody, and that is one of the exciting parts of this," says Fiona Greig, director of consumer research at JPMorgan Chase Institute.

In many ways, gig work can be a perfect fit for baby boomers and older adults looking to generate extra income. You can work just a week or two here and there, leaving plenty of time for travel and other interests, or use part-time on-demand work as a way to smooth the transition from a 40-hour work week to full-time retirement. Gig jobs often provide social interaction for seniors who might otherwise feel isolated. And because there are typically no job interviews, there's less risk of age discrimination, which can make it tough for seniors to find traditional employment.

But there are also some big challenges. Instead of a steady paycheck, gig work tends to provide lumpy, unpredictable income. That makes budgeting difficult. On-demand workers generally don't get traditional workplace benefits, such as 401(k)s and health insurance, or unemployment benefits when they're out of work. And because they're typically considered self-employed, gig workers must carefully track their income and expenses, make quarterly estimated tax payments, and deal with other tax headaches.

Seniors are turning to gig work as they face longer life spans and traditional employment becomes tougher to find. While employment in traditional jobs declined slightly between 2005 and 2015, the percentage of workers in alternative work arrangements—including temp agency and on-call workers and independent contractors—climbed to nearly 16% in late 2015, from about 10% in early 2005, according to recent research from the National Bureau of Economic Research. The sharpest rise in alternative work arrangements was among workers age 55 to 75, the study found.

Many gig-economy platforms are actively reaching out to older adults. In a temporary partnership that ended last year, Uber teamed up with Life Reimagined, an AARP subsidiary that helps people navigate life transitions, to offer financial incentives and educational events to Life Reimagined members who signed up to become drivers. Airbnb has published research on how home-sharing can help older people remain in their homes as they age. And the Freebird Club, a new home-sharing platform launched in April, is focused solely on older adults, limiting membership to those ages 50 and up.

Find the Right Fit

The sprawling gig economy is no longer just about ride-sharing and renting out spare rooms. To find the right platform for you, first consider what you have to offer. If you speak a foreign language or play a musical instrument, you could teach lessons through Take-Lessons. If you have a car or an RV that you rarely use, you can rent it out through Turo or RV Share.

If you're a lawyer, consultant or health care professional, you can find gig work through UpCounsel, Catalant or Doctor On Demand. To get a sense of the variety of gig work available, check out the list put together by Hurdlr, a service that helps gig workers track their income and expenses.

Also think about what you want to get out of your gig work—whether it's simply extra cash, social interaction, growing your small business or testing out a career change. If you're ready for a career change, gig platforms offer a low-risk way to try something new. "One of the nicest things about these platforms is you don't have to have an existing network to get started," because the online platforms can instantly match you with potential clients, says Steve King, partner at Emergent Research, a small-business research and consulting firm. "If you've been an accountant and now want to make movies, you can do that," he says, through platforms such as Fiverr, an online marketplace that matches customers with freelancers in video, music, design and other fields.

Other platforms are particularly well-suited for seniors looking to socialize. The Freebird Club, the new home-sharing platform for older adults, is like Airbnb, "but a very social version which is geared toward companionship," says Peter Mangan, founder and chief executive officer. Unlike Airbnb, where many vacant properties are listed as short-term vacation rentals, Freebird lists only properties where the host is currently living. Instead of seeing only an accommodation listing, potential guests see hosts' profiles, complete with personal interests and hobbies, and hosts can see guests' profiles. As a host, you can choose the level of interaction with guests you prefer, whether it's minimal interaction, sharing meals when possible or spending time together visiting local sights. "We want people to select each other based on perceived compatibility and shared interest," Mangan says.

For Forrest Greenslade, home-sharing started out as a financial safety net, but it quickly became an engaging social activity and support for his second-act career. Greenslade, age 77, retired as president of a women's health organization in 2000, thinking he would write management books and do some public speaking. But a heart attack in 2001 forced him to abandon that plan, and he turned instead to painting and sculpting. Then, the financial crisis and recession "ate up my 401(k)," says Greenslade, who lives in Pittsboro, N.C.

So four years ago, Greenslade and his wife turned the apartment over their garage, which Greenslade had been using as an art studio, into an Airbnb rental. That generates roughly $12,000 to $15,000 in annual rental income, Greenslade says, and the apartment, decorated with Greenslade's paintings, "attracts people who have common interests with us" who hang out and drink wine in the garden with their hosts. Guests sometimes even purchase a piece of Greenslade's art. "We've had a wonderful experience," he says.

Get Real

If you're considering gig work, set reasonable expectations by researching the platforms that interest you, your earnings potential and the challenges ahead.

Ideally, "you don't just arrive at 64 and quit your job and decide to do gig work,” says George Schofield, author of After 50 It's Up to Us: Developing the Skill and Agility We'll Need (Clarity Group, $15). Network with other on-demand workers, asking about their successes and failures, and consider picking up some gig work while you still have a traditional job.

When estimating your potential earnings, remember that there may be many workers competing for the same gigs. In recent research by Emergent and Intuit, 62% of gig workers said getting enough work is a challenge. "Frankly, if you're trying to use most of these platforms for full-time work, you're facing an uphill battle," King says.

Although it's relatively easy to get started with gig work, it may take some time to learn how to maximize your income on any given platform, says Garrick Chow, who teaches a course on working in the on-demand economy through the online education company Lynda.com. Ride-sharing drivers, for example, may need to pinpoint the most profitable times to drive, rather than driving around all day wasting gas.

Be prepared for your income to come in fits and starts. More than half of gig workers in the Emergent/Intuit survey said that unpredictable income was a challenge. "One way to manage that volatility is to be sure you're withdrawing income you need from cash reserves" or other ultra-safe assets, rather than relying on gig income to pay the bills, says Rebekah Barsch, vice president of planning and sales at Northwestern Mutual. Gig workers should keep at least six months' worth of living expenses in cash, she says.

Many gig workers need to sock money away when work is plentiful so they have savings to carry them through the lean times. Lori Clinch, age 53, of Winter Haven, Fla., started pet-sitting through DogVacay four years ago. "Normally I'm turning people away," she says, but business tends to dry up in January and February, when the snowbirds are in their Florida homes and have no need for pet-sitting. So Clinch has learned to step up her savings in November and December, when business tends to be brisk.

You may also need to construct your own safety net. Gig work generally doesn't offer an employer-provided retirement plan, disability insurance or health care coverage. Consider putting a good chunk of your gig income into an IRA or other retirement-savings vehicle. Organizations such as The Freelancers Union and Peers.org can help you construct your own benefits package, complete with health coverage and disability insurance.

Get Organized

As a gig worker, you’re generally considered self-employed. You won’t have an employer to withhold taxes from your paycheck, and you’ll need to carefully track your income and expenses.

On-demand platforms may or may not send you a 1099 showing the income you’ve earned during the year. Regardless of whether you receive a 1099, "the income will remain taxable," and you should keep your own records, says Mike Slack, lead tax research analyst at the Tax Institute at H&R Block. Apps such as Hurdlr and Everlance are designed to help gig workers track their income and expenses and get a real-time picture of their profits and taxes owed.

Document gig-related expenses as they are incurred so you can deduct them on your tax return. If you're a ride-sharing driver, for example, create a business-versus-personal mileage log in real time. The IRS "does not look with favor on a log created on April 15," says Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting. Ride-sharing drivers may also deduct tolls, parking fees and the portion of cell-phone expenses that's attributable to work as a driver. If you're renting out a home, or just a room, you may be able to deduct a portion of your real estate taxes, insurance and utilities. Apps focused on specific types of gig work can help with the bookkeeping. These include SherpaShare for drivers and Guesty for Airbnb hosts.

Gig workers generally need to file a Schedule C self-employment tax return and pay 15.3% self-employment tax, which covers Social Security and Medicare taxes. To avoid underpayment penalties, you'll typically need to make quarterly estimated tax payments. But if you still have a traditional employer, you can ask that employer to boost the withholding from your paycheck to cover the taxes you'll owe on your gig work, Slack says. Or you can increase the withholding on any required minimum distributions you are taking from retirement accounts (see The RMD Solution to the Hassle of Filing Estimated Taxes in Retirement).

If you're renting out your home, you'll likely need to file Schedule E and pay tax on your rental income. You may also owe self-employment taxes if you provide what the IRS calls "substantial services" to renters, such as meals and transportation, Slack says.

In response to the rapid growth of the gig economy, the IRS last year launched the Sharing Economy Tax Center, with links to tax tips and publications for gig workers. For many seniors, however, gig work is just one piece of a much bigger retirement-income puzzle. Leta Miller, age 61, became an Airbnb host in 2013, renting out one room in her four-bedroom Wichita, Kan., home. That only brings in about $1,000 a year, she says, so she also prepares tax returns for three months a year, does some bookkeeping and teaches yoga, while her husband, a musician, also does some computer-related gig work. While home-sharing isn't making them rich, it helps them avoid dipping into their retirement savings—and Miller sees few downsides. "The only time we’ve had a drawback," she says, "was somebody who snored really badly."