What do you do with your second home or vacation property when it’s not in use? Do you simply close up shop for the Arizona off-season and walk away? If you’ve ever stayed in an Airbnb or taken out a short-term lease on a property while traveling abroad, you may think that becoming a host is a great way to get use out of your second home while you’re away. But in reality, quite a bit of work goes into becoming a short-term landlord. In addition to figuring out your additional home insurance requirements, you’ll also need to consider just how much time and energy goes into renting out a vacation property.
5 Facts to Think About Before Renting Your Vacation Home on Airbnb
1. Do You Have the Time?
If you’re new to being a “host” or landlord, you may think that you can simply set-up your home, create a listing online and then had over the keys while you collect payment. However, becoming a landlord will take plenty of time, energy, money, and dedication – at least at first. If you aren’t willing to put in the time needed to get your property ready for renters and keep up with your listing, it may be time to rethink the idea of using Airbnb or a similar leasing company.
2. Are You Ready to Welcome Strangers Into Your Home?
Even if you find reputable and friendly renters to host at your second home, they will still be strangers. Everyone knows that looks can be deceiving and you only ever really know someone after spending some time with them or inviting them into your home. If the thought of strangers coming in and out of your home and doing whatever they wish is something that makes you uneasy, your best bet may be to think about long-term rentals or keeping your home “in the family.”
3. Do You Need a New Insurance Policy?
While your home insurance covers the occasional visitors staying over at your home, the chances are that your policy will not cover “hosting” renters or other short-term rentals. Airbnb does provide hosts with a primary insurance option, but it’s important to keep in mind that this coverage is subject to limitations, certain conditions, and exclusions. If you re taking the plunge and want to become a landlord, you may be better off investing in landlord’s insurance or even small business coverage.
4. What Will Your Neighbors Think?
As a homeowner, neighborly relations are important for a peaceful existence. While you may get along swimmingly with some, others can be a bit of a nuisance. But what if you became the annoying neighbor causing issues for others on your street? Opening your home up to renters is a personal decision, but if you aren’t around, it can have the greatest effect on your neighbors. Additionally, in some cities, laws have been put in place to prevent Airbnb rentals in certain areas – so make sure you won’t be breaking any Scottsdale area laws.
5. Why Do You Want to Rent?
Are you interested in renting out your second home to help pay the bills? Or are you simply interested in making some extra cash? Whatever your end goal is, it will take a bit of work to get things rolling. You can definitely expect an initial investment to make sure that your home can accommodate tenants. Additionally, depending on the type of rental you’re interested in, you’ll also need to invest in additional insurance protection.
Contact The Don Neeley Agency Today
Want to learn more about the benefits of a comprehensive home insurance policy? Call (480) 945-7621 or visit us online today for more information and be sure to request a free quote.