There’s no doubt that you’ve heard about all the buzz surrounding sites like Airbnb, as well as the problems that seem to follow. While services like these are steadily gaining popularity, that doesn’t necessarily mean that the grass is greener on the other side. There are a few things that you should know before you decide to switch to temporary rentals.
- Consider the Law
Before switching to temporary rentals, it’s always a good idea to look into the legislation in your area. Some cities are very serious about not allowing rentals through sites like Airbnb, so make sure you’re on the right side of the law before you make the switch. If you do decide to switch, look at your local ordinances to see if there are any limitations on the age of your guests or the duration in which a guest can rent, as this can affect your potential earnings.
- No Background Checks
With temporary rentals, objective information about the people that can rent your property is oftentimes not provided. This is very different from long-term rentals, where you can run a credit report and background check, allowing you to feel secure in your decision to rent to a specific person. Keep in mind that you’ll be dealing with a series of different strangers if you switch to short term rentals, and will likely have to rely on reviews and the person’s self-made bio to make your decision.
- Don’t Forget the Risk
While Airbnb will protect you with most property damage issues, there are still a lot of other risks. Stolen items are typically not covered, so you could be in trouble if a renter decides to take something. Additionally, you could be held responsible if a guest is injured, or you could find that you may have a squatter on your hands.
- Time Commitment
Not only do you have to worry about keeping your pricing competitive, setting up listings, and keeping up-to-date to with market news, but you also have to consider the time commitment that short term rentals require. They can be much more hands on than long term rentals, and you may be at the beck and call of your renters. Remember, sites like Airbnb are rating based, so you always need to keep guests happy.
While temporary rentals might work well for some people, there’s a lot to consider before taking the leap. Don’t forget to look into the legislation in your area, and take time to think over if you want to let a parade of strangers in your property. Whether or not the risk is worth it is up to you, but it’s always important to be informed before making such a big switch.
Have You Considered Switching to Short Term Rentals?