For any lucrative venture, there are bound to be challenges and this is the same case surrounding property owners who have to deal with tenants. Tenancy is a complex phenomenon that calls for severe measures to curb losses that may arise due to structural issues and problems pushed forward by tenants. It may appear appealing to rent your property to travelers and this business may look profitable until the obvious problems arise.
Most short-term tenants, due to the nature of the contract, will have little or no regard to ensuring your property is left in the best shape. Some of them will even engage in activities that may see you enter into legal battles with the authorities. So, this may be one of the reasons some property owners have to decide whether to rent to Airbnb.
Renting through short-term agreements may come with complications that may mature into risks. There are several risks like theft and the interference with the property of neighbors that may trickle down to the pockets of the owners of the property.
The tenants may engage in illegal activities that could attract the attention of the authorities and this action may be narrowed down to the lack of proper regulatory measures on the part of the owner of the house, something that could lead to confrontation by the authorities.
Lack of policies for short-term contracts
Many insurance companies do not give much attention to property that offers short-term rental to tenants. This cover would mean more losses to the insurance company, so it appears not worth the effort.
Airbnb protection option
You may confuse the host guarantee offered by Airbnb for an insurance policy, but that is not the case. Handing over your property to the company comes with the same risks as renting directly. Before you proceed with any action, it is necessary to seek the advice of an experienced investment manager. One reliable professional in that area is Richard Blair, who has been working through his firm Wealth Solutions.
Contribution of Richard Blair Wealth Solutions
Through Wealth Solutions, Richard Blair has reached many families and investors seeking help to manage their finances. He is an expert in Finance and Taxation and has been in this industry for at least 20 years. Richard Blair holds certifications namely the Certified Annuity Specialist (CAS), Certified Income Specialist™ (CIS™, Certified Estate and Trust Specialist™ (CES™) and Retirement Income Certified Professional™ (RICP™).
Apart from excelling in the business of helping individuals and companies make better financial decisions, he has also been a happy family man. He spends most of his free time with his wife, Joanne and children. He derives pleasure in playing gold, bike riding and taking family vacations.