It is becoming tougher for VRBO’s to keep up with all the changes and new legislations and rules that are coming into effect. Recently, we reported that all owners must now file Form 1099, and we also reported that the Colorado Association of Ski Towns (CAST) wants to crack down on vacation rental owners who aren’t paying lodging taxes or paying necessary business license fees.
At Barefoot we strongly advice second homeowners to connect with a professionally managed vacation rental company for several reasons. One of them being the fact that the companies can take care of checking in/out processes, as well as accepting credit card payments etc., another reason is that they can make sure all the proper taxes are paid, often by the help of some property management software. A software system that is sophisticated will offer the ability to help the property manager when it comes to paying various taxes etc.
The Austin Chronicle recently revealed that a report had been handed to the City Council’s Audit and Finance Committee suggesting short term vacation rental owners are not paying their share of the Hotel Occupancy Tax. This is a similar situation to what is going on in Colorado with CAST. The article can be read here.