Documenting airbnb income

I’m applying for a mortgage (NOT for my airbnb property), and trying to use my airbnb income. Has anyone had any experience with this? The underwriters are asking for my “agreement” with airbnb, but I’m not sure what to send them. Nothing indicates how much money I will be paid…they’re just the platform, after all.

Your bank certainly should understand the concept of freelance employment or some other form of non-contract, non-salaried self-employment income. Tell them there is no contract. There is no fixed amount of income from AirBnb. Tell them that the best you can give them is an average of your last 2? 3? 4? years worth of income from your listing.

The key phrase, I believe, is “self-employed”. No fixed income. I’ve used that phrase in the past when I was a freelance writer…

If they don’t understand the concept of freelance, non-contract, non-salaried, self-employed income, then you really need to look for another bank.

My understanding is that AIrbnb income is not normally taken into account for mortgage purposes as it isn’t reliable income.

I think you have answered your own question when you say ‘Airbnb is just a platform after all’.

There is no agreement to generate a set amount of income, so there is nothing you can send them.

I would go back to your underwriter for advice.

My bank treated would not take Airbnb income into account. Instead, they assessed the house as if it were being rented to a long-term tenant. Makes sense, as that is the fallback position.

It’s always harder to get a mortgage when you’re self-employed so you should probably enlist the help of an independent mortgage broker (i.e. independent of a retail bank). As long as you pay tax on the income you should be ok. If anything, there’s no secured lien or real liabilities other than the rent for an ABB business compared to financing residential real estate. I have some tax tips for documenting ABB income and deductions here that could help you.