In place of conventional hotels, Airbnb has grown to be a popular lodging option. However, the COVID-19 pandemic has had a significant impact on the tourism sector, leading some to question if Airbnb will still be profitable in 2020. Yes, in a nutshell, but like any business, it depends on a number of variables.
Location is one of the key elements that affects profitability. Popular tourist spots and large cities tend to have more successful Airbnb hosts than distant or undesirable areas. The capacity to charge higher prices and increased demand are to blame for this. Additionally, hosts that have interesting and appealing listings typically get more reservations and make more money.
The host’s capacity for controlling costs is another element that influences profitability. In addition to other fees, Airbnb hosts are responsible for paying for things like cleaning, maintenance, and utilities. A host is more likely to be profitable if they can control these costs while still providing excellent service.
Additionally, in reaction to the pandemic, Airbnb has made a number of adjustments, including improved cleaning procedures and a new option that enables hosts to advertise their apartments as “COVID-19 safe.” These adjustments have boosted reservations and reassured visitors.
Let’s now address the related query, “Can you deduct furniture for Airbnb?” The answer is indeed, but only in specific situations. Only if it is used only for the rental property, according to the IRS, can furniture used for a property be written off as a business expense. Furniture cannot be subtracted if it is also utilized personally, such as in the host’s own residence.
In conclusion, even though the pandemic undoubtedly had an effect on the tourist sector, hosts who are able to control costs and provide inviting listings in sought-after areas will still make money with Airbnb in 2020. Additionally, if the furniture is utilized only for the rental property, hosts may deduct it as a business expense.