Airbnbs continue to grow in popularity. This isn’t surprising since travelers want their own space while away from home. While you can simply reserve a room on Airbnb, the most popular option is reserving an entire house. And that is what the majority of travelers do when reserving an Airbnb in New Hampshire for vacation.
If you have been living in a bubble recently, and many of us have, you may not know exactly what an Airbnb is. An Airbnb is a short-term rental. An owner places their property on the Airbnb website and travelers can request to stay on that property for a certain length of time. It is possible to rent a home, treehouse, and even an RV. The options are almost limitless, depending on where you are renting.
Some Airbnb hosts rent by the night, while others do weekly rentals. It is often simple to reserve an Airbnb without booking months, or a year, in advance. The renter gets to stay in a larger space for often less than what they would pay at a hotel. And the owner gets a little extra income.
This seems like a win-win for everyone.
There are a few things you should know about Airbnbs in New Hampshire though.
Airbnbs in New Hampshire
First, Airbnbs are not legal in all towns and municipalities in the state. If you have been personally considering renting your property on Airbnb’s website, you must make sure your local government permits Airbnb rentals.
The city of Portsmouth considers an Airbnb property rental a transient occupancy. Since transient occupancy is illegal in Portsmouth, Airbnbs were not allowed in that area for many years. A compromise has been reached in Portsmouth and Airbnb owners are now allowed to rent out their properties. They must have a renter that is staying in the home for at least a month though. And this is subject to change, so you must keep up to date with all the regulations in that area if you are considering an Airbnb.
Towns and cities all throughout New Hampshire have similar guidelines and rules for Airbnbs. It can get tricky trying to understand them all. We recommend contacting your local government if you are thinking about utilizing your property as an Airbnb. This will ensure you understand the dos and don’ts in your local community.
Another important thing owners, and renters, must be aware of when renting an Airbnb in New Hampshire is the M&R tax. The New Hampshire Meals and Rooms Tax used to be collected and paid for by the host until 2017. Now, the 8.5% tax is added to the list of taxes paid when they make their reservation. The 8.5% is determined when adding the listing price plus all guest fees and cleaning fees together.
This change meant that Airbnb would hold the M&R tax license instead of each individual Airbnb owner in the state. The change also made it simpler for owners, because they didn’t need to file monthly tax returns to the Department of Revenue.
It is important to note that any owners that rent their property through another website in addition to Airbnb will still need their M&R tax license.
Owning a property that you rent through Airbnb can be an excellent idea for earning extra income. However, you must make sure you are following all local laws and guidelines, while also making sure you are paying all of the taxes you owe on the rentals.
Understanding everything you need to know about Airbnbs in New Hampshire can be difficult. If you have talked to your local government and are still confused, contact our office today. We can help by answering your questions and finding the answers to any obscure questions you may have.