Do you have a second home or vacation property that you think would make a great Airbnb location? You are not alone! Homeowners all over Missouri and the globe are giving short-term rentals a chance as they look for new ways to pay off their mortgages and make some passive income. But what most homeowners don’t realize is the fact that a lot of hard work and lifestyle changes are necessary to make Airbnb hosting work – at least at the beginning of the journey.
In fact, everything from your home insurance policy to your personal availability and your relationship with the neighbors will likely be shaken up in the process. So before you list your home for rent online, be sure that you and your family are ready for the commitment. Keep reading for more information on what it takes to master the art of short-term renting on Airbnb.
Top 5 Things You Should Do Before Listing Your Home on Airbnb
1. Understand the Laws
One tricky thing to keep in mind is that websites like Airbnb or VRBO may not alert you to any local laws that restrict short-term hosting in your area. It is up to you as a homeowner to be aware of any county or city laws that restrict certain types of rentals. Additionally, your HOA may also have certain regulations or restrictions put in place to help prevent short-term rentals, so don’t forget to do your homework well before you start spending money to make any necessary changes for your new rental business.
2. Be Aware That You Are Starting a Business
Many homeowners think that renting out their second home or vacation property on Airbnb or similar websites is just a simple way to make some extra cash. But in legal terms, if you plan on hosting guests at your home on an ongoing basis, you will be operating a small business. This means that you may need to make changes in a few different ways, including opening a business account with your bank and investing in proper insurance coverage.
3. Talk to Your Independent Insurance Agent
Feel comfortable that you’ve invested in a great home insurance policy that will protect your home during the rental period? Well, chances are that your current policy will not cover any guests or their actions while they are in your home. In fact, you will likely need to discuss additional coverage options like small business insurance for ongoing short-term rentals or landlord’s insurance if you plan on more extended rental periods.
4. Consider Ongoing Expenses
There are always start-up costs to take into consideration when investing in a new business venture and Airbnb hosting is no different. However, one big thing that many homeowners tend to overlook is the number of ongoing expenses that will need attention as you continue to host new guests. These include everything from cleaning supplies and hand soap to rising utility bills, maintenance needs, and repair costs as well.
5. Screen Your Guests
If you turn your second home into a short-term rental house, keep in mind that you will be opening your doors to complete strangers. While there are certain safety precautions put in place by Airbnb and their competitors, you can never really know how a hosting gig will turn out. So it is very important that you do everything possible to screen your guests carefully before allowing them into your home. This includes paying close attention to reviews left by their previous hosts and using additional guest verification services.
Contact Mid-Rivers Insurance Group Today
Want to learn more about the importance of comprehensive home insurance coverage before renting out your home? Contact our friendly agents today for more information and be sure to request a free quote.