Are you interested in becoming a regular Airbnb host? If so, you are not alone. In fact, many homeowners in the Green Bay area and across the globe have found that Airbnb is a good way to make extra income on the side. If you have a second home or vacation property that would make a great Airbnb destination, keep in mind that you’ll need to make a few changes to your home and lifestyle before you can start renting. One of the biggest changes you’ll have to navigate? Changing from your current home insurance policy into something that covers your home against damages incurred by your guests. Keep reading to learn more about what it takes to rent safely and successfully on Airbnb.
3 Fast Facts You Should Know About Becoming an Airbnb Host
1. You Need to Connect with Your Guests
It’s important for homeowners not to get swept up in the apparent ease of becoming a host by remembering that you’ll be inviting perfect strangers into your home. To make sure your home is safe, there are a few main steps that must be taken before a booking can be made, these include:
- Guests must show proof of valid ID.
- Guests should send messages only through the hosting website with any questions, comments or concerns. Do not give out your private contact information.
- Some guests may prefer speaking over the phone, so it may be wise to invest in a second business phone number.
- Guests must pay for their stay before getting the keys to your rental.
- Once a reservation has been made, make sure you arrange check-in or meeting times.
Making a connection with your guests is important for success. If you don’t feel like you can be available for them in the event of an emergency or whenever they have questions, you may need to rethink how often you can open your home for short-term rentals.
2. Get the Right Insurance Coverage
Your regular home insurance policy will not cover hosting or other short-term rental agreements. This means that you’ll need to work closely with your independent insurance agent to determine which type of insurance coverage is best suited to fit your special needs.
While Airbnb does provide some level of coverage for their hosts, their insurance policy is still subject to certain conditions, exclusions and limitations. Typically, your insurance agent should suggest investing in either small business insurance or landlord’s insurance to protect your home and other assets in the event of an accent or another issue.
3. Utilize Smart Technology
Give yourself and your tenant’s peace of mind by investing in smart technology like security cameras, additional smoke and fire alarms throughout the home and even door or window sensors for added security. Not only will these items come in handy in the event of an accident, but they will also offer you an extra layer of protection if you have to go to court over a liability claim. Another great idea to avoid security and safety issues in your home? Instead of keys, replace your locks with an automatic key code entry.
Before you list your home for rent, you should also look into any local restrictions that may be put in place by your county or HOA. And don’t forget to talk to your neighbors, letting them know what your plans are.
Contact Pagel & Associates Insurance Today
Want to learn more about the importance of comprehensive home insurance coverage? Contact Pagel & Associates Insurance online for more information and be sure to request a free quote today.