Every person invests in the anticipation of profits and hoping that there will be no losses along the way. Most of the decisions made by people when renting their property out are not inspired by research and logic and that is why there are countless cases of people making losses or even facing legal action.
Airbnb offers property owners an avenue through which they can earn by renting their houses to the company. However, experts have warned about the consequences apparent when one takes such action. You need to first review the benefits versus drawbacks as highlighted below.
Accepting tenants to your premises means also accepting any losses they might bring along. Some tenants are rogue and will not care about using the space you rent to them well. They might even engage in illegal dealings, which might see you battle legal suits and make losses.
Any injuries and loss of property caused to your neighbors by the tenants will be your liability. Other tenants may turn into thieves while a certain group may decide to move out before paying rent.
Insuring the property
As seen above, accepting tenants comes with many risks, especially if the agreement is on short-term basis. Most insurance companies do not accept to insure short-term rentals due to the high loss potential that comes with allowing tenant to take no liability for losses. Therefore, any damage or losses incurred in the process are placed on you. This may result to huge losses if reviewed keenly over a period of time.
The Airbnb protection
This is one of the options you have when you want to protect your property, but you must understand that it is not an insurance package. Rather, it is an agreement that allows you to enjoy protection when all other avenues you have are exhausted. With these issues in mind, you can easily choose the right way to rent your property. Also engage experts like Richard Blair for sound advice.
About Richard Blair
Founder of Wealth Solutions, Richard Blair is a renowned professional with a rich background in financial management and subjects related to financial planning and retirement. Through Wealth Solutions, he has helped many small businesses and individuals to manage their finances better. Richard Blair is an individual with extensive knowledge as he is a Certified Income Specialist, a Certified Estate and Trust Specialist, Certified Tax Specialist and a Certified Fund Specialist.