Have you ever considered renting out your home while you’re away for an extended period of time? Websites like Airbnb, HotPads, and Craigslist have made doing so relatively easy, and people across the country are making quite a bit of money.

 

While the opportunity has the potential to be lucrative, it also is a huge commitment. In addition to the time commitment of keeping up with maintenance as well as finding and securing tenants/renters, there is also the liability of having tenants in your home.

 

Do you know what will happen and what your insurance covers if something happens to your tenant or your property while a tenant is in the premises?

 

To avoid such concerns, start by checking the references of potential tenants. Websites like Airbnb make this relatively easy as property owners are allowed to rate and provide feedback on renters the same way renters are allowed to review the property. Other times you will need to gather a list of names, emails and phone numbers that you’ll have to verify. It is vital that you DO NOT skip this step. It’s extremely important that you contact these references to determine whether or not this stranger will be a trustworthy and responsible renter.

 

If you uncover any red flags while checking references, do not agree to rent your home, even if you are afraid of hurting someone’s feelings. Your first priority should be to protect yourself and your property.

 

Other things you should take into consideration in order to protect your home:

 

• Advise Nella Insurance Services that you plan to rent out your home and ask about how this may affect your current coverage.
• Draw up a rental agreement that defines the terms of the rental, including restrictions, liabilities and occupancy guidelines.
• Request a security deposit that is to be refunded if there is no damage to your home.
• Consider hiring a property manager to look out for your home if you are renting for a long period of time.
• Set aside a secure place in your home to store personal items, such as clothing and valuables.
• Take pictures of all areas of your home before the rental takes place in case damage occurs while you are away.
• Have your mail forwarded or held until you return.
• Provide your contact information to both the renters and your neighbors in case of an emergency.

 

If you are currently renting your home or considering renting your home, please reach out to us so we can discuss possible risks and ways to mitigate them. Please do not hesitate to contact us with any questions or concerns.

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