Can any one help me?
I am a newbie to hosting and loving every minute of it. I am struggling to find out if I am legally required to have a Real Estate Licence to be a host and receive a reward/fee for hosting another persons property. Having done some research the cost of obtaining and registrating a licence is extremley expensive.
I approached Office of Fair Trading and was adviced that I am required to have a full Real Estate Licence, I have no desire to let or sell property so fail to understand why this is the case.
Is there anyone out there who could shed any light on this matter, I want to expand, but legally of course. Or is there a way around this?
Any help would be greatly appreciated.
Many thanks, Nicola
Each country is different. France is easy with cities under 500 000 people, Spain : Don't even talk about hosting for less than 30 days in cities like Barcelona for instance. Especially right now.
You need to find out the rules in your area - from Federal down to state/city/HOA/lease level. Without knowing where you live, we don't know what laws apply.
In my state (MI), all I needed was a Tourist home permit from the city and a business registration (so I could pay use tax) at the state level. Hosting in my own home needs no Real Estate license, but I could see how hosting for others could classify as a property management business, which does. You may see if there are thresholds under which a license isn't required (ie. if only hosting 3 properties). It also looks like an unlicensed person can work under the supervision of a licensed broker, so that could be an option if it's required in your area.
I found the Small business development Center (SBDC) really helpful in finding regulatory info.
Other considerations: how would you get paid and what are tax considerations? I don’t think we can opt to be taxed as sole proprietorship if we are a partnership. If the LLC were to pay you as an employee, how would you be taxed and report that income? What obligations would the LLC have to provide you with pay stubs or W2s? Are there regulatory requirements that require us to have any other systems in place? What about liability insurance? My homeowners insurance provides some protection to me as as the homeowner, but does not provide any protection to our hypothetical LLC. Does the LLC need a separate policy? Does Airbnb offer protection to hosts that get sued?