Renting a home or even a part of your home through Airbnb has some major advantages as well as disadvantages that should be taken into consideration by anyone looking to move forward with doing so. The benefits or advantages of renting a space or house on Airbnb are obvious. The driving factor for many people to make the decision to put up a rental on Airbnb is the extra income that it can bring in as well as its ability to help them pay off property costs.
Some disadvantages though and things that many people do not consider include things such as the risks, what protection they should have in place, and the type of insurance coverage that they should obtain. Let’s take a look at these three areas more in-depth. The risk associated with offering a rental on Airbnb can include but are not limited to the damage that could be done to your property, injuries to guests, illegal activities, lawsuits, and theft. Many individuals have not taken these things into consideration and it has resulted in them spending more money on repairs and legal costs than what they made from the rental.
This is one of the reasons why it is very important to carry the proper insurance coverage on short-term rentals as they are often not covered by the standard homeowner policy. Not having the correct insurance for your short-term rental could leave you liable for any expenses as well as legal ramifications due to your guest’s actions.
The most important thing to think about though is the overall protection of your investment in the property. When individuals are looking to list a short-term rental on Airbnb it is highly advised that they consult with an experienced insurance professional and wealth or investment management professional such as Richard Blair. Richard Blair is the owner of Wealth Solutions based out of Austin Texas and has over 22 years experience in securities.
Currently, Richard has a portfolio in which he manages over 55 million dollars worth of assets. Wealth Solutions offers many different services including financial planning, wealth management, retirement planning, and investments. Richard Blair obtained his bachelor’s degree in Finance and Financial Management Services from the University of Houston. He currently holds several different titles including but not limited to a Certified Funds Specialist, Registered Investment Advisor, and Retirement Income Certified Professional. Find out more: http://www.manta.com/c/mtr4ztj/wealth-solutions