The hospitality industry has gone through a major change over the past five years as more and more people use unique services such as Airbnb and other short-term rental options. The services have been popular with both guests, who enjoy the comfort and value compared to a hotel, and homeowners who enjoy the extra income they can receive from tenants. While renting out your home on Airbnb or a similar website can provide some extra income, there are several issues that all people need to be aware of before renting out their home.
The first risk that you need to consider before renting out your place is the risk that you are violating some law or rule. Short term rentals are often in violations of local ordinances or condominium association rules. Simply having a tenant in your property could lead to a violation, which could result in you being fined or penalized in another manner.
Another risk that all people need to be aware of is the risk of damage to their home. While you may be able to collect a security deposit and get some form of insurance coverage from the website, this often is not enough. A bad tenant that throws a party or is careless with your home could easily rack up tens of thousands of dollars in damage. Also, if a crime is committed in your property you could base some form of liability.
In most cases a basic homeowners insurance policy will not provide you with adequate coverage. Unfortunately, the level of coverage you might need is unknown and can be complex. If you are looking to rent out your home to either a short-term or temporary tenant, it would be a great option to speak with Richard Blair first. Richard Blair is a personal financial expert, whom is the CEO of Wealth Solutions Inc. One area of his expertise is personal insurance. Richard Blair will be able to walk you through all of the risks that come with renting out your home and will be able to provide you with a personal insurance plan to offset those risks.
Richard Blair and Wealth Solutions can also provide you with additional personal financial services. He and his firm will be able to help you prepare a full financial plan to help you prepare for retirement and achieve both your short and long-term financial goals.