When all your commitment, hard work, and personal discipline begin to pay off, you should start to plan for your future and invest in fields that protect not only your assets but also generates revenue. However, most people tend to venture in small investment such as savings accounts, or rent part or their whole property on Airbnb since they consider it a simple and quick strategy for making money. Homeowners can earn cash by temporarily renting their properties to travelers. However, there are many risks associated with trusting your properties to total strangers.
The temporary renters can cause damages to your building that might not be covered under your homeowners’ insurance policy. Such damages may leave these temporary tenants with financial and legal problems they had not expected. http://hackronym.com/wealth-solutions-insurance-and-other-considerations-when-renting-on-airbnb/
Factors to consider before renting your house on Airbnb
There are wide ranges of risks associated with having tenants on your property. You will be accountable in case the guests sustain injuries. You will be liable for illegal activities, damage to property, and lawsuits associated with their actions. Some tenants may also decline or delay to pay.
There are no insurance policies to cover temporary rentals. Therefore, you will have to pay for the expenses incurred by the temporary renters. The absence of a comprehensive insurance policy makes renting of houses to temporary renters unwise and risky.
Airbnb provides a secondary coverage, which becomes effective once all of your resources are exhausted. After you have reviewed all the risks involved and you still feel you need to venture into short-term rental business, it is advisable to seek professional advice from a wealth management specialist and an insurance expert.
About Richard Blair
Richard Blair specializes in evaluating the current financial status of customers and development of a detailed wealth management program that suits their specific demands and goals. He founded Wealth Solutions, Inc. to help people in saving for their retirement. The Austin, Texas-based firm offers personalized and outstanding financial planning services to high profile individuals, business owners, and talented young entrepreneurs. He has assisted hundreds of clients to protect, manage, and expand their personal wealth.
Apart from his undergraduate degree, Blair holds professional credentials such as Registered Investment Advisor, Certified Fund Specialist, Certified Annuity Specialist, and Certified Estate and Trust Specialist. Blair utilizes his professional expertise to help customers transition from their job to their retirement. Blair’s goal is to assist his clients to transform their dreams of a successful retirement into a reality.
Follow Blair on LinkedIn: https://www.linkedin.com/in/richard-blair-bb6772108