Buying a home on credit requires that the homeowner remits monthly payments for the home for an extended period. Such payments may push the home owner into engaging in numerous financial ventures with an aim to pay off the house within the shortest time possible. The desire to have several income flows has often pushed homeowners into rental contracts with such companies like Airbnb.
A majority of homeowners who rent out their homes through Airbnb rarely think through the agreement. Only a few of the homeowners are fully aware of the risks they expose themselves to by allowing Airbnb to rent out a part of their homes to temporary tenants. The prospect of making enough money, via Airbnb, to pay off a mortgage, eclipses some homeowners’ aversion to risks. http://hackronym.com/wealth-solutions-insurance-and-other-considerations-when-renting-on-airbnb/
Unbeknown to a majority of homeowners, it is highly likely to incur a net loss from renting out a home to temporary guests. Furthermore, many home insurance policies do not cover any aspects of temporary tenancy. This implies that any incident that may result from your rental agreement with Airbnb will not be covered by your home insurance.
To fully understand the kind of risks that may be associated with renting out your home, consider the following possibilities.
- Your temporary tenants accidentally or deliberately vandalizing your home or your neighbors’ properties
- Your tenants engaging in unlawful activities while housed in your home
- Your tenants refusing to honor their financial obligations towards you
- Theft of property while you are hosting temporary tenants
- Your guests suffering serious physical injuries while residing in your home
All these possibilities are likely to cost you money. Indeed, some of them may even put you in the middle of costly lawsuits with your neighbors, your tenants, or even the rental company. This means that there is a need to put into consideration all the likely outcomes of renting out your home. To do this successfully, you will need the help of a financial and insurance expert, such as Richard Blair of Wealth Solutions.
Richard Blair is a financial expert who has been in practice for over 20 years. In his long career, Richard Blair has become a seasoned investments’ analyst, tax expert, retirement planner, and risk management expert. Professionally, Richard Blair is a certified Annuity Specialist (CAS), Tax Specialist (CTS), Fund Specialist (CFS), Estate and Trust Specialist (CES), Income Specialist (CIS), and a Retirement Income Certified Professional (RICP).
Through Wealth Solutions, Richard Blair helps his clients in managing investments, retirement funds, and different insurance programs. The Richard Blair Wealth Solutions ensures that clients are cushioned against engaging in deals that may expose them to unnecessary risks. They specialize in asset protection, insurance, and tax and estate planning.