When you have a home in a desirable area, especially if it is close to where celebrities live, it can be a golden opportunity to make a lot of money. Whether it is from listing it with Krilova Group and selling for a great price, or because you can rent it out on Airbnb.
You may have been thinking that it is a perfect location to get quite a bit of money by listing it as an Airbnb rental, but don’t really know if it is actually a good idea.
There are upsides and downsides to everything and listing a house on Airbnb is no exception. You can list just about every type of property from a house to a condo and each has its benefits so keep that in mind as you get educated about the process.
In this article, we will take a look at some of the things you need to know before you can make a decision.
Local laws
You might love the idea of Airbnb, but the local authorities in your area might not be as enthused. There are likely going to be some regulations regarding the legalities of listing your house.
For instance, in some places it is banned outright. Some areas are seeing rents increase dramatically for locals when there are a lot of houses going up on Airbnb. Another issue is that people that are working in hotels suddenly don’t have much work which can also lead to a number of problems in an area.
Make sure you know what the laws are in your area. You may be able to list, but have to pay some local taxes, or you may not be allowed at all.
Insurance and liability
You may need to make some major changes to your homeowner’s insurance if you plan to rent it out to Airbnb guests. Since damage to your home is made more likely when you are inviting strangers in and have a big influx of people in your house, your insurance will surely go up. And if you don’t make sure to add coverage, you may be denied a claim in the event there is damage.
You should also consider having liability insurance in case somebody gets hurt while staying in your home. Airbnb does offer their own liability insurance that covers up to $1 million in damages in case something happens.
Personal safety
If you plan to rent out a room in a home where you live, keep in mind that you are inviting a perfect stranger into your house. This makes your personal safety something that needs to be considered.
There are some safeguards in place to ease the worry, however. For instance, you can make sure you only rent to people that have used Airbnb many times and have gotten high ratings from other hosts to give you peace of mind that there is not much chance they are violent or dangerous.