Renting on Airbnb requires several considerations to be made. Despite of being a quick way of making money, there are some essential factors to look at prior to renting out a property. Hosting travelers temporarily offers a way of raising funds for paying for a property. However, some situations have shown that unexpected problems can also arise. That is because, sometimes, the part time renters can damage the property. It gets worse when a home owner insurance does not cover the damage. Thus, such problems may leave part time hoteliers with costly legal and financial issues. Additionally, dealing with the damage may cost more that the amount made from renting the property.
Therefore, there are three major concerns for a person intending to rent out a property on Airbnb and similar organizations. That includes protection, risks, and the insurance coverage. Airbnb’s protection is secondary coverage. It only comes in when a homeowner’s resources have been exhausted. When it comes to risks, they increase with tenants. That is because when property owners take guests, they become liable if the guests get injured or damage property. Additionally, many insurance policies for home owners do not cover temporary rentals. A home owner is left personally liable to the expenses that result from taking in guests.
The above three concerns are the major issues a home owner as to look at before renting out their property to temporary guests. Additionally, it is important to seek the views of a qualified investment manager or an insurance professional. The experts understand the situations better. One such professional is Richard Blair. He can help to review the options a homeowner has and provide the advice that suits that situation. He is a highly experienced individual that has been engaged with securities for more than 22 years.
About Richard Blair
Richard Blair is the owner of Texas based firm, Wealth Solutions. It is a registered investment advisory company. He created the firm to transform the live of small business owners, families, as well as individuals. Richard Blair offers his clients objective advice along with customized strategies on wealth preservation, investment, and retirement. He likes the challenge of assisting others to attain their individual financial goals. Richard Blair is a certified annuity specialist, certified fund specialist, certified tax specialist, and a retirement income certified professional. Additionally, he is one of the highly experienced in the financial services industry. He attended the University of Houston. Richard Blair graduated with a degree in finance.