Often, many people opt to rent part or their whole houses on Airbnb as a way of making easy and quick money. By hosting travelers, home owners can get the money they require to pay for their homes within a short time. However, recent incidents have indicated that unexpected problems can also crop up. Temporary renters can cause damage that is not covered by homeowner insurance. As a result, the amateur hoteliers can be left with financial and legal issues they did not anticipate. Addressing these issues end up costing more than the cash made from renting out a home.
There are multiple issues to consider before renting your property through organizations like Airbnb. The major issues include risks, protection, and insurance coverage. Having tenants comes with many risks. As the owner of the property, you are liable for injuries to the guests as well as any damage to your property. Additionally, you face potential lawsuits if they engage in legal activities including theft. Some of the tenants may refuse to pay for the services which can lead to losses.
The type of protection provided by Airbnb is not primary coverage. It comes in once you have depleted your resources. Additionally, the homeowner’s insurance policy does not cover the short-term rentals. For this reason, you are solely responsible for the expenses incurred by the guests you accommodate. It is recommended that you have a look at these risks before you decide whether you still want immediate guests. In addition, it is essential to talk a certified insurance expert or a wealth manager. Wealth Solutions’ Richard Blair is one such professional.
About Richard Blair
Richard Blair is a Registered Financial Advisor. He is the proprietor of Wealth Solutions that is found in Dallas, Texas. Richard formed the firm in 1994 with the intention of making a positive change in the lives of people including small business owners. He has over 23 years of experience in the financial sector. Due to his natural talent in finance, he realized that he had the potential to help people make sound financial plans as well as investments. Richard joined the financial industry immediately after graduating in 1993. Throughout the years, he has perfected his knowledge of retirement planning. From his experience, he has focused on assisting his clients to bridge the gap between preparing themselves for retirement and living in retirement. Richard is a Certified Annuity Specialist, Certified Fund Specialist, and a Retirement Income Certified Professional.
Learn more: https://angel.co/richard-blair