Before rental sites such as Airbnb made short-term rentals common place, it would have seemed crazy to rent your home out to a stranger while you go on holiday.
But along with Airbnb, other platforms such as FlipKey VRBO are making it easier than ever to find guests for your spare bedroom.
Short-term rentals have opened up a series of opportunities not previously available to homeowners. With the ability to provide a passive income for owners and flexible options for travelers to explore new cities, it’s not wondering the idea of property sharing has exploded into the mainstream. There’s no better way to get to experience the local culture than to live with the locals!
But short-term rentals don’t come without a series of hurdles to consider. Before you decide to take a leap into the unknown, consider the following factors;
Simply put, do you have the time to manage a short-term rental? Between managing the marketing, the finances and taking care of the guests, operating a short-term rental property can feel like a fulltime job.
It is essential that you’re realistic about how much of your time you will have to spend on maintaining the property for your guests. If your property is particularly popular, you may want to consider hiring a property manager who can take care of the administrative side of things for you.
Renting out your home involves considering the cost of things such as a more comprehensive insurance policy for your home to protect from damages, etc., as your current policy may not cover short-term rentals.
Although Airbnb provides complimentary primary liability coverage for up to $1,000,000 per incident, it is still prudent to take out your own insurance and ensure that you are covered adequately — especially if you keep valuables or family heirlooms in your home.
Other costs you should consider are the commission that the platform you choose to use charges. For example, Airbnb charges a 3% host service fee, so you may want to build this into your short-term rental prices.
Before you decide to put your home on a short-term rental website, you must ensure that no restrictions are stopping you from doing so. Not only could you upset your neighbors with an illicit short-term rental business, but you could also find yourself in trouble with your city.
Some cities have strict rules with must be adhered to when renting out your home for short-term rental — this can include registering your property for a permit to operate. It is essential that you do your due diligence and check with your local government to make sure that you are aware of any restrictions or protocol that they may have.