Short Term Rental business is gaining its popularity all over the world. With various online marketplaces for listing your property-rental business, more and more people are coming forward to rent their property.
But just like any other business, there are risks associated with short-term rental business as well. Let us have a look at a few of the risk involved and how, as a host, you can protect yourself from the risk.
Risk Involved in Short-Term Rental Business
· Risk of damage to property including fire, breaking of furniture and other damage to the physical structure of the property.
· Risk of theft of your personal belongings.
· Risk of using the property for anti-social activities.
· Risk of not vacating the house on time.
How to Protect Yourself from the above Risks?
· Go for extra insurance coverage: The normal insurance policy that you take for your house will cover only those houses that are used for personal purpose. If you are using the house for commercial purpose, then you should check with the insurance company about the extent of coverage. It is better to go for an umbrella coverage that protects your home from any untoward incident that might happen while renting out.
· Go for a third-party inspection: Before renting out the property, get the property inspected by a third-party agency. Carry out all the repair or replacement that they recommend. You can look online for any third-party inspection company in your local area the provide this service. You can also ask personnel from the fire department to inspect your house for any potential fire hazard.
· Provide basic safety facilities at your property: You should provide basic safety provision in your property so that even when an untoward incident happens you have the necessary facilities in your home. Make sure that the house has a smoke detector and carbon monoxide detector and that it is in a working condition. Install fire extinguishers in areas like kitchen, barbeque, and firepit. Keep first aid kit inside the house and let your guests know about it.
Provide all details about the safety facilities in the house in a welcome book so that your guests get to know about it.
· Be transparent and provide all details of your house: You should provide all the details of your house to the guests; especially to those who are coming in with small children or seniors. For eg; if there is any pond next door or heavy traffic in front of the house, the same should be specified in the listing so that only those who do not have a problem with the above will take up the home for rent.
While renting out your property, consider the guests as a member of the family or a close friend. This way you will be more transparent in your dealings and provide them with the tutmost care and consideration while letting out your property.