Many owners of property want to rent part of the entire house to Airbnb but are not able to make a decision immediately because they do not have information that can help them understand the benefits of doing so.
Renting on Airbnb may appear an easy and fast way of making money, but the truth is there can be some unexpected drawbacks that may come with such a decision. Understanding all the issues that are likely to prevail is the first step to making a useful decision on whether to rent or not. Below are key considerations that weigh the issue to derive a useful decision.
Issues likely to arise
Having tenants comes with several responsibilities and risks that may threaten your business and its profitability. Having tenants means you immediately assume the liabilities for injuries to guests, theft, damage to the property of your neighbor, illegal activities and lawsuit that emanates from these actions. And sometimes the tenants may default payment.
Getting insurance cover
Most homeowner’s insurance doesn’t cover short-term rentals, so it is your personal duty to cater for any expenses incurred for having paid guests. This may prove too heavy to you if you have no elaborate plans to mitigate losses.
Seeking protection through Airbnb
This is a decision that you should make as an end resort when you have gone to the farthest extreme in other options. After looking at the issues highlighted, you can then make a decision on whether you would want to accept short-term guests or not. To make an accurate decision, it is advisable to engage an insurance or wealth management professional with industry experience like Richard Blair.
About Richard Blair
Richard Blair of Wealth Solutions is a focused company that has been established around offering investment advice and helping individuals make the right investment decisions. Richard Blair, a Finance graduate from University of Houston, boasts of more than 20 years offering wealth management and investment advisory services. Through his company Wealth Solutions, he has concentrated in helping people manage their wealth and come up with proper retirement plans.
Many of the businesses that have sought advice through Wealth Solutions have experienced growth and change in the first six months. Richard Blair is a professional with unique capabilities and experience that has been useful in drafting road maps for the execution of various ideas. He holds several certifications including the Certified Annuity Specialist (CAS), Estate and Trust Specialist™ (CES™) and Retirement Income Certified Professional certification. Learn more: https://www.brightscope.com/financial-planning/advisor/218993/Richard-Dwayne-Blair/