Whether you’re looking for extra income or have stayed in a vacation rental through a site like Airbnb or Vrbo, you might be wondering if becoming a vacation rental host is an option for you. From your homeowners insurance to certain state regulations, there’s a lot to consider before letting others rent your property. Here are some tips to help you be prepared for renting your home on sites like Airbnb.
What is a vacation rental site?
Vacation rental sites such as Airbnb, Vrbo, and HomeAway are online marketplaces that connect people who are interested in renting out their homes to those looking for accommodations in that area. While simply booking a hotel room used to be the primary option for travel, these sites have provided more opportunities for tourists and others spending time away from home.
Three Steps to Make Sure You’re Prepared to Be a Vacation Rental Host
Figure Out When and How Often You Want to Rent Your Home
You’ll want to research your local home-rental regulations and the site(s) you plan to host on’s rules. Regulations can vary state-by-state, with some states more strict than others. For example, your state might only allow you to rent your home if it is your primary residence or there could be a limit on the amount of days per year in which you’re allowed to rent your residence out.
Determine the Market Price For Your Home Rental
It can be hard to determine what rate to charge, but a good way to start is to compare similar properties in your area to see what they are charging. This will help you establish a reasonable range. Adding up your basic monthly costs—mortgage, rent, utilities—will also help you determine what to charge each night.
Ensure You Have the Best Homeowners Insurance and Liability Coverage for You
While the vacation rental site’s insurance should act as the primary insurance and provide liability coverage to hosts and their landlords, you’ll want to discuss with your insurance provider before you become a host. This will help you better understand how the site’s policy works with your own homeowners or renters insurance, but also to make sure you have the proper coverage for renting your property.
Let SelectQuote help make sure you have the right homeowners insurance and liability coverage.
At SelectQuote, we’ll take the time to learn about what you hope to protect and provide home insurance quotes from some of the most trusted carriers, saving you both time and money.