Airbnb is one of the companies allowing homeowners to earn an extra income through renting part or whole of their home. It is an easier way to make money with hosting visitors probably for a few days. However, as recent incidence has proved that some unintended occurrences may be expected during the stay. For instance, the temporary renters may damage parts of your property which is not covered by the insurer or injuries to the temporary tenants which might lead to legal costs to you as the homeowner of the property. As the homeowner, you need a plan and preparation for these occurrences which are usually not anticipated.
Since the standard homeowners’ insurance cannot cover damages caused when the homeowner had converted the house into a business, you may end up incurring more cost to address the amateur hotelier through renting the property. Some of the issues you have to consider include risks to the tenants. For instance, when you agree with the short-term tenants for a temporary stay as a business, you are liable for personal injuries to the guests, theft, damage to neighbor’s property, lawsuits, and other illegal activities that may arise.
The other issue to consider is protection and insurance. You have to evaluate the coverage given by the Airbnb and whether your homeowners’ insurance needs to be adjusted to suit the conversion of your home for short-term rentals. Failure to have the appropriate insurance policy may make you personally liable for any damages incurred.
The sad part about the industry is that most homeowners do not understand how to go about it. Most homeowners choose the short cut way to cut deals with the hoteliers without factoring the unintended consequences of their decisions. However, there is a way out to this problem when you choose the right experts to advise you how to handle the problem. Richard Dwayne Blair of Wealth Solutions is one such professional. With a vast background in retirement and insurance, Blair is well suited to help you review the right options and give you the costumed advice to your situation.
Blair is the founder Wealth Solutions and has vast experience in financial planning and is a financial advisor to the high net worth individuals. Over the years, Blair has helped many clients using his knowledge and expertise in retirement planning and wealth management. He is conversant with new trends in the financial world including alternative ways of earning extra income.
Contact Wealth Solutions for your financial needs