Renting out your personal property to travelers for short-term stays or vacations sounds like a great gig. You may be going away and thinking of making extra money by temporarily renting out your entire property. Or you may wonder if it is a good idea to rent away that spare room in your home to frugal tourists. But before you do any of those, it is important to think it through!
The Growing Popularity Of Personal Property Rental Services
In the last few years, the short-term rental housing economy has come to be one of the fastest-growing and the most lucrative service sectors today. Many platforms such as Airbnb and Vrbo have emerged where homeowners and tourists connect from around the world. Gone are the days when tourists and travelers had hostels and hotels as their only option for accommodation. Although home or room rental services aren’t anything new, the wave of digitalization has certainly added convenience and security to this engagement.
Benefits For Hosts And Guests
Without an ounce of doubt, short-term rental sites seem to have brought excellent opportunities for both guests and hosts.
For homeowners, listing their vacation property or a room on reliable home-sharing platforms has become a convenient option to earn extra spending money. These platforms also enable both hosts and guests to share their experiences and rate each other on criteria such as living experience, cleanliness, and ease of communication. Also, travelers get the liberty to choose a perfect property or room to rent depending on the amenities required, location preferences, and budget.
But Before Renting Out, Are You Covered For The Risks Involved?
Although short-term rental may seem a lucrative pursuit to most homeowners, there is always another side of the coin, and that side involves significant risks. Many ‘short-term rental deals gone wrong’ stories have made headlines where the uninsured renters suffered exponential loses. Broken furniture or electronics, run-ins with local law enforcement, and human mistakes – you can’t wholly strike off the element of risk that comes with this venture.
So, always think ahead and get your property insured. You may also want to confirm with your residential property insurance provider about how your rental pursuits may affect your property insurance coverage terms.
Although popular short-term rental sites such as Airbnb, Vrbo, and HomeAway provide some protection to renters and their property, there are restrictions. The protection varies according to locations and, in many cases, the end-liability may fall on the shoulders of renters. Clearly, if you’re planning to list your home or a single room on any of these sites, the responsibility of securing your property is on you!
If you don’t want to end up with hefty bills at the end of a rental agreement, it is strongly recommended that you buy a short-term rental insurance policy! Renting out your property to anyone, even if it is for a short time, is a business pursuit and changes in occupancy can influence many things. It is essential to factor in all the risks, which neither your current home insurance policy nor the liability coverage offered by the rental sites will cover! You must ensure that you have protection against damages due to negligence, personal injury, and damage claims that a person who rented your property may make against you.
Tammy Sower Insurance is a full-service independent insurance agency that offers a variety of insurance coverage plan to secure you against the uncertainties of life! If you are looking for the best short-term rental insurance policy for your property, we can help. Please contact us today or call us directly at 540-635-9007 for expert guidance!