Making money through the internet is incredibly easy thanks to the many freelancer and “gig economy” websites emerging. Selling things through an online auction and taking advantage of online data entry work are not the only ways to make money. Homeowners can turn their property into a hotel by renting out a room on a nightly basis through websites such as Airbnb. Making money in this manner is incredibly easy.
There are, however, serious responsibilities that must be taken into consideration. Specifically, homeowners have to be aware of the insurance implications associated with renting out a room through an online site.
Wealth Solutions’ blog presents a great many solid points homeowners should think about. Taking anything in an insurance policy for granted is a very bad idea. Imagine if a renter is injured on the property and the policy excludes claims associated with the commercial use of a home. An exclusion means the insurance policy is not going to cover any losses.
People may assume the policy will cover any and all claims. Rather than assume, it would be a wiser plan to contact a representative from the insurance company to get the full story.
The rental services may provide a certain amount of insurance coverage as part of the partnership arrangement. There is nothing wrong with this, but the policy may end up being inadequate. Considering the potential losses a homeowner could incur in a fire, theft, injury, or other incident, inadequate coverage is never acceptable.
Wealth Solutions also points out another issue homeowners have to accept. Dealing with tenants is not easy. Someone who has never worked in the commercial real estate industry might not realize how difficult short-term tenants can be. Tenants could cause damage to the property, refuse to pay, or file frivolous (or legitimate) lawsuits against the landlord. As a result, an attempt to earn a little bit of money leads to huge losses.
Wealth Solutions provides a lot of excellent advice in the blog post. The company is run by Richard Blair and provides investment and other financial advice to clients. A graduate of the University of Houston, Richard Blair is an experienced registered investment advisor and performs these duties on a daily basis.