Knox is an Airbnb alternative. Learn how
As Airbnb has spearheaded the short-term rental model all around the world, investors have flocked to the residential real estate arena to tap into this highly popular (and profitable) opportunity.
Investors have been collecting real estate properties with the specific intention of listing them on Airbnb, HomeAway, or VRBO as destination vacation rentals. A few months ago, this strategy appeared to be seamless.
When the market was at its peak, property owners were able to make enough profits off of a few weeks of rental income to cover the mortgage payment. Over time, they’d be able to get so far ahead that their loan was taken care of while they were still racking in surplus financial gains.
However, the web-based short term rental program’s honeymoon stage was short-lived. Investors who have their short-term rentals listed with Airbnb have been faced with a lot of unprecedented obstacles recently.
Here’s a deeper look at some of the recent events that are impacting short-term rental programs right now:
New Taxes on Short-Term Rentals
With 2020’s Tax Cuts and Jobs Act (TCJA), new taxes are being imposed on short term rentals.
While many of the TCJA’s clauses help property owners by allowing them to deduct more of their expenses, there are some areas where property investors could be slammed with more taxes than ever before – especially if short term rentals are your side gig.
The TCJA negates one’s ability to make a personal deduction on hobby expenses. Short term rental owners who were planning to write off this year’s rental income as a hobby are in for a shock as they’re now required to pay full taxes on those earnings without any room for deducting.
Ordinances Preventing Short-Term Rentals
Not everyone is so fond of short-term renting happening in their local area. In a 2019 survey gauging how respondents would feel if a neighbor started hosting short-term rentals, 50% said they would ‘feel less safe’ and 40% thought their home value would decrease.
Resultantly, many cities, neighborhoods, and counties are passing ordinances to prevent property owners from becoming short-term rental hosts.
COVID-19 Concerns to Ban These Programs Altogether?
In an effort to restrict the influx of tourism during the pandemic, certain states have banned short-term rentals altogether. California and Colorado were trailblazers in this initiative, but the trend may pick up speed as COVID concerns sweep the nation.
Evidently, short-term rental investors are in a tight spot right now as instability is around every corner. They have mortgages that need to be paid (in some cases, many mortgage loans), and when short-term rentals are slow and uncertain right now, how are they going to pay the bills?
Knox as a Winning Alternative
Fortunately, there is a way to pivot this faltering investment strategy and turn your properties into a longevous, market-beating asset. Knox Financial offers an alternative to seamlessly transform your short-term rentals into long-term income properties.
These 3 reasons are just a few of the benefits that investors can derive from working with Knox Financial’s innovative system:
A Smooth Transition
When you work with Knox, the process of converting your short-term rentals into long-term rental properties is a breeze. Knox makes it easy, painless, and stress-free. Working with Knox’s streamlined system can reconfigure your current set-up by handling it like the valuable investment property that it is.
Since Knox does all the work, investors and property owners don’t need to worry about a difficult transition. Hopping from one market to another has never been easier or more efficient.
Knox Takes Care of the Details
Investors who were looking forward to the largely hands-free aspect of listing your property on a short-term rental portal will be blown away by what Knox has to offer. If you thought that Airbnb was easy, think again. From property management to marketing and everything in between, Knox handles all of the details.
You sit back, collect income, and watch your investment grow. Knox takes care of the rest. It really is that simple.
Establish a Strong and Resilient Portfolio
By converting your short-term rental assets into long-term income properties, you’ll be able to generate a reliable and secure stream of passive income throughout the market’s ebbs and flows. This will provide you with the returns you need to carry your investment even during the most uncertain times.
By working with Knox Financial, investors can easily support their mortgage payments, operational costs, and more without having to worry about potential market fluctuations.
In times like these, investment security has never been more pivotal. Make sure that your real estate assets are set up for success with Knox Financial. To learn more about this innovative approach to property ownership, visit our website.