I really don’t care if someone else follows the rules, but feel it unfair to those that are above board & treating it like the business it is. It also means that in order for my listing to remain competitive (charging equally) the net of my booking would be substantially less due to the fact that I net less than those not paying licensing & taxes. Taxes in my area run 14.7%. My insurance runs around $2500 yr.
I am a firm believer in abiding by the rules & regulations set up by HOA’s, city, county, state & government when it comes to owning a business…which is what you have when you do short term rentals. I am licensed, insured to do business & pay all taxes due. By doing this it sets a good example of how the ‘sharing’ community can contribute to the cities in which they live.
Needless to say, I know people in the same neighborhood that aren’t. Just this year, Airbnb began collecting taxes in behalf of homeowners & remitting them to the appropriate entities. Sure makes my job easier.
One of the disadvantages of not being above board is you open yourself to being reported, having your homeowners insurance refuse to pay a claim or cancel your policy if they find out, personal liability & more. I personally have worked hard for the home I have & share with others & would not want to deal with the possibility of losing everything I have, should a legal issue arise.
So, even though I live in my home & it is my primary residence, I still choose to be transparent. I am not trying to make a living, just trying to help pay my mortgage & have a little left over to do some traveling on my own.