People are looking for ways to make money without much hustle. Renting their entire or part of their houses on Airbnb appears to be one of these ways. The idea of homeowners accommodating travelers for a short time seems brilliant because they can get the money they need to pay for the property. However, it can also be detrimental as evidenced by some recent incidents. Problems might arise when these temporary renters occasion damage to the property something that may not be covered by insurance. As a result, unexpected legal and financial issues may arise. These issues could be overwhelming to the property owners. They could even cost more than what they made by renting their property out. http://hackronym.com/wealth-solutions-insurance-and-other-considerations-when-renting-on-airbnb/
Homeowners should, therefore, consider some issues before renting their property through Airbnb as well as other organizations. Below are the most important considerations lest things start going south:
Just like any other endeavor, renting out a property comes with many risks. For instance, the property owner is potentially liable for any injuries to the tenants regardless of the length of the period of their stay. Homeowners are also liable for damage to their property or that of their neighbors, illegal activities, theft and even legal actions that may arise as a result of their actions. It is also uncommon for renters to default in payment.
2. Insurance coverage
It is important to note that many home owner’s insurance policies do not cover short-term rentals. Property owners are therefore personally responsible and liable for all the expenses incurred by their temporary guests.
Airbnb and other organizations only offer secondary coverage protection. The protection only takes effect when they have exhausted their resources.
Property owners should carefully weigh the above issues before coming to a conclusion whether they still want to take in temporary tenants. In most cases, homeowners usually make decisions that they come to regret sooner or later. To avoid bad decisions, advice from a qualified wealth and investment manager or insurance professional is highly recommended. One such person is Richard Blair who has helped many people make informed decisions that they never regret.
Richard Blair has many titles under his name. He is an independent financial advisor, a Certified Estate and Trust Specialist, a Certified Annuity Specialist, a Certified Tax Specialist, a Retirement Income Certified Professional and a Certified Fund Specialist. Richard Blair has an experience of more than 20 years working in the financial services industry. He is the founder of Wealth Solutions that is based in Austin, Texas. The Richard Blair Wealth Solutions idea is to offer small business owners, individuals and families solutions that can impact their lives. Wealth Solutions helps people review the options they have. He also offers expert advice that is tailored to meet their specific needs.