Turning your primary residence into an Airbnb: The pros and cons
Last updated: June 10, 2026
How to Airbnb your home? Many homeowners choose to turn their primary residence or second homes into an Airbnb for a variety of reasons. Some may find themselves with extra space after their children move out, leaving them with a larger house than they need. Others might own an apartment they rarely use because they frequently travel for work or spend more time at a partner’s place. Whatever the situation, renting out these spaces on Airbnb can turn unused rooms or properties into a valuable income stream.
What’s certain is that there’s plenty of money to be made from becoming part of the sharing economy. Airbnb now has more than 8 million listings all over the world – from London and Paris, to Dubai and Kuala Lumpur. Homeowners, young and old, are seeing the financial value of listing a spare room or letting out their place when they go away on holiday.
Before you turn your primary residence into an Airbnb for the extra rental income, you might want to think about the pros and cons of how this will impact your day-to-day. Here’s our guide to the ins and outs of renting a primary residence on Airbnb. According to Airbnb’s 2026 US Economic Impact Report, the average US Airbnb host now earns $15,800 a year — a record high.
Estimate your property’s potential
Are you curious about how much your primary residence could earn if you turned it into an Airbnb? Use our estimate tool to quickly assess your property’s earning potential.
Pro: Less pressure to get bookings
If you rent out your primary residence, there’s less pressure for you to get bookings because, in most cases, you won’t be losing money if your spare room is vacant.
If your short-term rental is not booked for a couple of weeks, it’s not as financially disastrous as having an investment property that is sitting vacant without long-term or short-term tenants.
Similarly, if you’re keen to make extra cash while you go away for a month by putting your place on Airbnb, it’s not the end of the world if you can’t find someone to rent the space during that time.
Con: Your personal belongings need to go
Sarah travels frequently for work. In fact, every few months she goes abroad for three weeks, and during that time she rents her principal residence on Airbnb.
Every time she prepares her home for Airbnb guests, she goes through the same process of removing her personal belongings from the space and locking them up in safety boxes and cupboards.
As you can imagine, this is not the most fun way to spend your time as an Airbnb host. For this reason, many hosts will choose to keep their place free from any personal items, but that can leave you feeling like you’re living in someone else’s home. Finding the balance between enjoying your home and protecting your valuables can be challenging.
Pro: Tax-free advantages
Tax laws differ greatly between countries, and it’s important you talk to your accountant or tax advisor before committing to renting out your home on Airbnb.
In the US, short-term rental income may qualify for deductions on mortgage interest, utilities, repairs, and depreciation. The rules depend on how many days you rent compared to how many days you use the property personally. The IRS sets specific thresholds that affect how expenses are treated.
UK readers: If you’re renting out a room in your primary residence, you may qualify for a tax-free allowance under the Rent a Room scheme. If your property qualifies as a Furnished Holiday Let, you can also claim the cost of fixtures and furniture at tax time.
Con: Tax registration and local compliance
If you earn significant income from short-term rentals in the US, you may need to collect and remit occupancy or lodging taxes depending on your city or state. Many platforms, including Airbnb, collect these automatically in some jurisdictions, but not all. High earners may also trigger self-employment tax obligations. Check your local rules before you list, not after.
Some US cities cap the number of nights you can rent per year or require your property to be owner-occupied. Check your local STR ordinance before listing.
UK readers: If you earn above the VAT threshold in the UK, you may need to register for VAT, which will affect your pricing or margins. London hosts should also be aware of the 90-day rule, which limits how many nights a primary residence can be let per year without planning permission.
Pro: Sharing your space with fascinating travellers
Airbnb is used by travellers from all corners of the globe. It’s one of the easiest and loveliest ways to connect with people from other cultures.
It’s also a chance for you to pass on precious information about your neighbourhood to help guests get the most out of their stay – from your favourite place to grab a wine, to the best play areas for kids.
Allowing someone to come into your family home and stay with you can result in long-lasting friendships.
Con: Being available 24/7 for guests
The downside of using your primary residence as an Airbnb is that there’s a risk that your relaxing family home can turn into a workplace.
New guests require clean sheets, fresh towels, a warm welcome and possibly a gift pack.
As an Airbnb host, you need to be prepared to treat it like a business, which means answering emails at all hours, assisting with guests who have lost their keys and dealing with all sorts of other issues. This can really impact your enjoyment of your home.
Pro: Earning a solid passive income
If your apartment or family home is in a sought-after location, you could earn decent money from listing it on Airbnb. Some people are able to fund their own travel by renting their place on the platform while they’re abroad.
If you are not fussed by the constant coming and going of new guests, Airbnb could be the passive income you’ve been dreaming of. After all, the space is there so you may as well make money from it.
Con: Decorating conflict
One thing to keep in mind is how you want your property to come across on Airbnb. Attracting guests to stay with you is not just about listing a spare room – there’s a lot to consider in terms of interior design and decorating. Certain colours that you might want to paint the walls of your family home might not be very enticing to potential guests.
Or a sofa that you find wonderfully comfortable might be prone to staining easily, which means it’s not the ideal choice for an Airbnb property. If you are serious about making money from Airbnb, your décor choices need to be tailored for travellers rather than your own personal tastes.
Frequently asked questions
Here are the questions US homeowners ask most often before listing their primary residence on Airbnb.
Can I Airbnb my primary residence?
A: Yes, in most US locations, but local rules vary. Some cities require a short-term rental permit or restrict hosting to owner-occupied properties. Check your city’s STR ordinance and HOA rules, if applicable, before listing.
How much can I make Airbnb-ing my home?
A: The average US Airbnb host earned $15,800 in 2025, according to Airbnb’s 2026 Economic Impact Report. Earnings vary by location, property type, nights available, and how well the listing is managed.
Do I need a licence to Airbnb my home?
A: Many US cities require a short-term rental licence or permit. Cities like New York, San Francisco, and Chicago have strict registration requirements. Check with your city or county housing department before you list.
What insurance do I need?
A: Airbnb provides AirCover for Hosts, including up to $3M in damage protection and $1M in liability coverage. This is not a substitute for your homeowner’s insurance policy. Many insurers offer dedicated STR endorsements. Ask your provider before your first guest checks in.
How does the 90-day rule affect my home?
A: The 90-day rule is primarily a UK regulation specific to London. In the US, short-term rental limits vary by city. Some jurisdictions cap the number of annual rental nights; others restrict hosting to primary residences only. Check your local STR ordinance to see which rules apply to your address.
Should I self-manage or hire a manager?
A: Self-managing works well if you have a flexible schedule and local availability. Professional management like GuestReady makes sense if you travel frequently, own multiple properties, or want to maximise earnings without the operational work. Most managed listings see higher occupancy due to professional pricing and guest communication.
Imagine being able to make money by renting your primary residence on Airbnb without the downside of dealing with guest relations and marketing? GuestReady is an experienced Airbnb management company with professional staff who can help you turn your home into a successful holiday let.
