Do you have a vacation property or second home in Arizona that doesn’t get as much use as you’d like it to? If so, you’ve probably thought about renting out your home once or twice in the past. And if you’ve ever heard of Airbnb or similar rental agencies, you may think that they offer a great way to make extra money while giving your second home a little TLC. While this can work in some cases, it’s also a good idea to proceed with caution if you don’t have previous rental experience.
In fact, if you plan on turning your second home into a vacation rental, you’ll need to take a close look at your current home insurance situation first. Because most home insurance policies don’t cover short-term rentals, you may need to invest in additional coverage. Want to learn more about the possible risks of renting out your vacation property? Keep reading for more information!
5 Things to Consider Before Renting Your Home on Airbnb
1. Inviting Strangers Into Your Home
If you use a short-term rental or hosting site like Airbnb, you have to remember that you will be inviting strangers into your home on a regular basis. You will also need to feel comfortable communicating with strangers via email, text, phone and in person. If the idea of letting multiple people come into your home each month makes you feel uneasy, then this may not be the best option for you.
2. Do You Have the Time?
Running a successful Airbnb listing takes lots of time and dedication. Even if you outsource some of the hard work to an agency or a friend, you will still be ultimately responsible for how your rental looks online. Do you really have the time and flexibility needed to become a landlord? If the answer is no, maybe long-term renting would be a better option for you.
3. Additional Insurance Protection
Chances are that your current home insurance policy does not include coverage for tenants. So you may need to look into investing in landlord’s insurance, small business insurance or a rental dwelling policy. While most agents may advise against becoming a landlord on a whim, if you have a good plan in place it is easier to find a policy that will meet your needs.
4. Neighbor Relations
Keep in mind that your neighbors may not be too happy with the idea of a boutique hotel opening up next door. How do you think your neighbors will react when they find out that you’re running an Airbnb? Additionally, your city or county may already have restrictions in place against subletting –so there is a chance you could be breaking the law.
5. Liability Risk
Hosting renters at your home immediately opens you up to the risk of a liability claim. Your home is also at the risk of theft and vandalism. In extreme cases, you could even be at risk of squatters taking over your home as well. While Airbnb does provide coverage through their own Host Protection Insurance, there are certain limitation conditions and exclusions involved.
Contact Mooney Insurance Today
If you are considering transforming your second home or vacation property into a short-term rental, make sure you have all of the facts first. Home insurance is one of the biggest factors to consider when becoming an Airbnb host or long-term landlord, so be sure to speak with your local Tucson insurance agents before handing over your keys. Contact our team for more information on the benefits of total insurance protection and be sure to request a quote online today.