Have you ever thought about making a few extra bucks each month by renting out your second home or vacation property? With the rise of short-term hosting companies like Airbnb, it seems like many Americans are giving the idea of becoming a landlord a try. But what price does transforming a second property into a rental home cost Arizona homeowners? While it may seem like an easy process, short-term rentals require changes to your home insurance coverage, an investment of time and money and the ability to welcome strangers into your home. Still think a rental is a good idea? Keep reading to learn more about what it takes to make it as a successful Airbnb host in Scottsdale.
Are You Ready to Become a Landlord on Airbnb?
As a vacationer, using a hosting site like Airbnb or VRBO.com (Vacation Rentals By Owner) is a fast, convenient and comfortable way to travel. But on the other end of the short-term rental agreement, landlords have to put in a great deal of time and effort to maintain their rentals. Before you start accepting renters in your second home, there are a few key factors you should consider.
Protecting Your Property
The very first step every potential landlord should take before renting out their home is to make sure their personal property is protected in the event of an accident, inclement weather or damage from their tenants. Since you already have a home insurance policy in place, you may think that you’re covered. But the majority of home insurance policies do not extend coverage to rental property.
This means that you’ll need to talk to your independent insurance agent about additional coverage. While you will be offered host protection insurance from Airbnb, this coverage is subject to a number of different limitations, conditions, and exclusions. In most cases, your insurance agent will likely recommend that you invest in landlord’s insurance, small business insurance or an additional endorsement to your existing policy.
Time Commitment
Even if you plan on outsourcing many of the services you need to maintain your home while it is occupied by tenants properly, there will be an initial investment of time and money needed to get the ball rolling. While some homeowners can afford help from a leasing agent, the majority will be putting in all of the work themselves.
Some of the work you can expect to get your property listed, including:
- Cleaning, staging, and photography
- Maintenance and accessibility updates
- Creating a memorable, interesting and detailed rental listing
- Communicating with guests before, during and after check-in
- Maintaining your rental profile
- Being available for any issues that may arise
- And much more!
Additional Legal Considerations
Even though they are growing in popularity with homeowners and renters, short-term rentals are causing big legal problems across the US and abroad. Although many cities in Arizona welcome tourists with open arms, that doesn’t mean that your neighbors or HOA will. In fact, before you even begin the process of setting up your home as a short-term rental property, you should double check for any restrictions in your city or county. Even if there aren’t any restrictions put in place, have you stopped to think how this big change may affect your neighbors? If you think there could be issues, maybe you should give the idea of becoming a landlord a second thought.
Contact Vanyo Insurance Group Today
Want to learn more about the importance of comprehensive insurance coverage for landlords? Contact our friendly and experienced insurance agents today for more information and be sure to request a free quote.
