Airbnb is an online rental platform that allows homeowners to rent out a room, or in son cases their entire home, to travelers looking for short term arrangements. The extra income is great for those who live in expensive areas.
However, there are many things would be hosts often fail to consider. Here are 3 things you need to think about before opting to rent out your home via any online rental platform.
#1 – What Does Your Homeowners Policy Cover?
Most homeowners policies will not cover short term rentals. As a matter of fact, most homeowners policies explicitly exclude such activities. To protect yourself it is best to upgrade your policy.
Add a rider or invest in a business liability policy. You can also require all guests have proof of insurance.
#2 – What Risks Come Along With Having A Tenant In Your Home?
Having a tenant in your home comes with a lot of risks. The potential for injuries, theft, damage, lawsuits and illegal activities are all risks you need to consider before renting your home out to a complete stranger.
Please note if you are running a short term rental business you may be required to get a commercial license.
#3 – Is The Protection Offered By Airbnb Enough?
As of right now Airbnb offers all hosts $1 million worth of protection. The problem is this protection is not an actual insurance policy. That means if something goes wrong, you still may be left to foot the bill.
The protection through Airbnb is a guarantee and not an insurance policy. This means you will be required to exhaust all other possibilities before filing a claim.
Who Is Richard Blair?
Richard Blair is the founder of Wealth Solutions, an investment advisory firm that provides advice to individuals, families and small business owners.
Growing up surrounded by teachers Blair took an interest in education at a very young age. He was able to see first hand how teaching can change someone’s life. Due to his natural aptitude for finance, Blair knew he could help people by teaching them how to invest and plan for the future.
In 1993 after graduating college Richard Blair immediately started working in the financial services industry. One year later he opened Wealth Solutions with the goal of providing unbiased financial advice to those who need it.
To learn more about Richard Blair and Wealth Solutions visit www.WealthSolutions.com.
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