Do you rent a home out as an Air B&B?

If you do what are the pros and cons? My sister-in-law wants to rent out my in-laws home as an Air B&B. She is currently renting the home but her kids are grown and gone and she wants to move somewhere smaller. Currently she pays for my in-laws rented apartment in place of her paying rent. She believes it will generate enough revenue to pay her rent and her parents rent. She needs my husbands and her fathers approval for this. It all sounds great but I feel there can be more that would make it worse. For instance hidden business taxes or issues with zoning or something.
She paints a pretty picture but I want to know what would be the pit falls other than someone may not rent for an entire month or months and also property damage or people doing something illegal on the property.