There has been a steady increase in people renting out their houses using popular rental services such as Airbnb or VRBO. It's a great system that allows property owners to earn a premium rental charge over a typical monthly rental.
There has been a lot of discussion locally on how these rentals should be regulated (if at all).
The new regulations called for implementing a certification process for approving residential properties to offer short-stay room rentals, such as those found on websites like Airbnb. Currently, property owners must have their properties designated as R3 or R4 zones, which also allow apartments or offices, if they wish to use them for short-stay rentals.
But have these property owners thought about the tax consequences? Probably not, but they should. If they are not careful, they may end up subjecting the income earned from short-term rentals to self-employment taxes (an additional 15.3%).