Every single business comes with its own share of uncertainty. Your vacation rental properties are in no way any different. In fact, if you are the proud owner of more than one vacation rental property, you also have more risks. That being said, the vacation rental industry can be financially rewarding!
So, to ensure that your guests will not be the only ones getting some rest, here are five tips that will help you to limit your risks.
- Ensure That You Have The Right Business Insurance
If you are planning to list your vacation rental properties on Airbnb, just keep in mind that Airbnb insurance will not offer you sufficient insurance. On top of the Airbnb insurance, you will also have to get business insurance.
Countless people who are new to hosting on Airbnb forget that any homeowner’s insurance policy has a clause that excludes business pursuits. In other words, your insurance provider will reject any claim that has to do with your vacation rental properties which you have listed on Airbnb.
Also, when you use one of your vacation rental properties as your own residence, ensure that you have personal liability coverage too. That way you will be covered for instances of personal negligence too.
As it can be quite complicated, it is better to chat to a professional insurance agent. Get one whom you can trust and who has a good understanding of your unique circumstances.
- Be Informed About Your City’s Regulations
Did you know that Airbnb is actually not legal in every city? Plus, in the places where Airbnb is legal, it is also not regulated exactly the same. So, when you plan to list your properties on Airbnb keep in consideration that the rules could be different for every location.
It is also a good idea to give the local tax authority a buzz to familiarize yourself with the rules that are applicable to your vacation rental properties. As the regulations pertaining to vacation rental properties do not stay the same, it also advisable that you check every couple of months if your vacation rental property still complies so that your business does not break any laws.
After all, renting your property poses enough risks already, do not add unhappy neighbors to that list too.
- Use A Safety Deposit For Your Vacation Rental Properties
You have spent what have felt like days on end googling your guests. Now that you have eliminated possible guests that could cause trouble, you are still not completely at ease. A good idea is to ask your guests to pay a safety deposit.
In fact, most guests do not mind paying a deposit whatsoever! The ones who might moan and groan are usually the troublemakers. Ensure the safety of your vacation rental properties by asking a security deposit of at least $100 or even more depending on your pricing.
- Add A Cleaning Fee
Let’s face it, your guests might not look after your vacation rental property as nicely as you would have hoped. Even though you have politely asked them not to throw any parties, they might not necessarily respect your wishes.
Apply a cleaning fee to each booking so that you are protected and you have fewer responsibilities. A professional company will also be able to ensure that your place meets the standards set by the hospitality industry. This way you can rest assured knowing that your property will be ready to welcome your next guests.
- Set Rules And Safety Instructions
Ultimately you want your guests to feel at ease and at the same time you want your vacation rental properties to be well looked after. Setting a few house rules and including safety instructions will achieve just that! Ensure that the safety instructions and house rules are comprehensive and specific. It is also a good idea to print a copy that you can place somewhere in the house or apartment.
The majority of Airbnb hosts lose sleep over having insufficient protection in case that something, unfortunately, goes awry. Apply these tips so that you can settle down along with your guests.