5 Credit Cards to Help You Rent Out Your Home to Travelers
Vacation rental websites like Airbnb and VRBO make it easy to rent your home to travelers. These five credit cards can help too. ·Credit.com
Brian Acton
Updated
Vacation rental websites like Airbnb and VRBO make it easy to rent your home to travelers and turn your property into a revenue-generating business. An entire home or even a spare room can be transformed into a cash cow.
But the costs of making your home renter-friendly—including furniture, renovations, and ongoing maintenance—could prove challenging. Some credit cards can help, especially if they enable you to avoid interest on purchases or help you earn rewards as you spend.
Here are five credit cards that can make it even easier to rent out your home to travelers.
1. Home Depot Consumer Credit Card
Rewards: None Sign-Up Bonus: None Annual Fee: $0 Annual Percentage Rate (APR):0% APR for up to 24 months on eligible purchases, then variable 17.99%, 21.99%, 25.99%, or 26.99% APR based on creditworthiness. Why We Picked It: Home Depot's card makes home renovations and ongoing maintenance more affordable. For Renting Out Your Home: Whether you have some renovations to make before you list your rental or you just need supplies for ongoing maintenance, this card can help. Various purchase types, including roofing and HVAC systems, can receive up to two years of 0% APR financing. Any purchase over $299 can also get six months of 0% APR. Drawbacks: If you don't shop at Home Depot, this card isn't right for you.
2. Citi Simplicity
Rewards: None Sign-Up Bonus: None Annual Fee: $0 APR:0% APR for 21 months on purchases and balance transfers, then variable 14.99% to 24.99% APR. Why We Picked It: Lasting 21 months, this card's 0% APR offer is seriously impressive. For Renting Out Your Home: If you anticipate many upcoming or ongoing expenses for your rental, this card will help you avoid interest. You'll see almost two years of interest-free purchases and balance transfers. Drawbacks: This card offers no rewards.
3. Discover it – Cashback Match
Rewards: 5% cash back on up to $1,500 in purchases from bonus categories each quarter and 1% cash back on other purchases. Sign-Up Bonus: Discover matches all cash back earned in the first year with this card. Annual Fee: $0 APR:0% APR for 14 months on purchases and balance transfers, then variable 11.99% to 23.99% APR. Why We Picked It: This year, you can earn cash back buying rental supplies at two leading merchants. For Renting Out Your Home: Through the end of 2017, the 5% cash back category is Amazon.com and Target purchases. You can find just about anything—from furniture to tools and everything in between—at these two merchants. Drawbacks: Bonus categories change every quarter, and they might not always be rental-friendly.
4. Chase Freedom Unlimited
Rewards: 1.5% cash back on every purchase. Sign-Up Bonus: $150 bonus cash if you spend $500 in the first three months. Annual Fee: $0 APR:0% APR for 15 months on purchases and balance transfers, then variable 15.99% to 24.74% APR. Why We Picked It: This card combines cash back rewards and a 0% intro APR to offer great value. For Renting Out Your Home: All purchases earn 1.5% cash back, so you'll earn a solid cash back rate no matter what you buy. Plus, you'll get 15 months to make purchases with 0% APR. Drawbacks: Competing cards offer higher cash back rates, depending on what you buy.
5. Chase Ink Business Cash
Rewards: 5% cash back on the first $25,000 spent on office supplies and internet, cable, and phone services per year; 2% cash back on the first $25,000 spent at gas stations and restaurants per year; and 1% cash back on other purchases. Sign-Up Bonus: $300 bonus cash back if you spend $3,000 in the first three months. Annual Fee: $0 APR:0% APR for 12 months on purchases and balance transfers, then variable 14.24% to 20.24% APR. Why We Picked It: If you want a business credit card, this is a solid option. For Renting Out Your Home: You'll earn 5% cash back on $25,000 in internet, cable, and phone service expenses per year, so you can make some money back on your rental's utilities. Drawbacks: Business credit cards are probably unnecessary unless you manage multiple rentals.
Choosing the Best Credit Card for Your Rental Needs
The best card for renting out your home depends on your rental needs. If you need to put a lot of upfront investment into your home to get it ready for renters, you may want to look for a card with a 0% intro APR period. If you anticipate many expenses at a specific merchant type (such as home improvement stores) you should find a card that rewards those types of purchases.
If it's a 0% APR offer you're after, do your homework and estimate the cost of setting up and maintaining your rental. You'll want to make the most of your major purchases before the intro period expires.
Unless you're managing multiple properties or investing a lot of money in your property, you probably don't need a business credit card. However, it can be advantageous to keep a separate card for rental expenses. That way, your business and personal expenses won't mix, and it'll be easier to report your business expenses at tax time.
What Credit Is Required to Get a Card for Renting Out My Home?
Credit cards with the best cash back rewards and 0% intro APR offers often require good to excellent credit. Before you apply for a card, you should make sure your credit score meets the card's application requirements. You can check your credit report for free at Credit.com to make sure you'll have the best chance of getting approved for the card that's right for you.
Note: It's important to remember that interest rates, fees, and terms for credit cards, loans, and other financial products frequently change. As a result, rates, fees, and terms for credit cards, loans, and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees, and terms with credit card issuers, banks, or other financial institutions directly.
