Understand The Risks; Consult With an Investment Advisor Before Renting Your Apartment on AIRBNB

Most people are often tempted to rent their entire house or a section of it as a way of making quick bucks. It might be that extra bedroom or that destination holiday home that stays unoccupied for months every year. The emergence of entities such as AIRBNB in the past one decade has made such temporary rental agreements easier and more convenient. AIRBNB hunts for people willing to rent off their home space temporarily and connects them with willing tenants at a fee. This may sound like a good investment idea, but it is a path you ought to tread carefully. The desire to make quick bucks or accumulate wealth easily may cost you dearly in the long run in terms of repair and legal costs to name a few.

Before temporarily renting your home space to AIRBNB it is important to consider the risks that come with it. The first risk is that when you take in tenants, you accrue some liability for them. You become responsible for injuries, theft, damage, and illegal activities associated with them. It is not uncommon for renters to get sued over activities of tenants they take in temporarily. There is also the risk of some tenants failing to pay for the space they use.

You should also have in mind the fact that most homeowner’s insurance policies do not cover short-term temporary rentals. Damages arising from such temporary rental agreements are solely your problem. AIRBNB offers only a secondary type of damage coverage that most of the times kicks in late after you have struggled with repairs and other costs associated with hosting short term guests. You also should consider the many legal technicalities surrounding such temporary rental agreements most of which relate to taxation. Before making the decision to rent your space temporarily to AIRBNB, it is recommended that you consult with a certified investment advisor. The investment advisor will give more insight on the risks mentioned above and others.

Richard Dwayne Blair is one of the recommended investment advisors. He is the founder and proprietor of Wealth Solutions Inc, an investment advisory and financial planning firm based in Austin, Texas. Richard Blair has more than 22 years experience in the securities and investments sector. He will help you critically assess the viability of renting you house space to AIRBNB and assess alternative options. He is an accredited Financial Planner and a Retirement Income Certified Professional Advisor certified by both the CFP and the RICP boards. He has worked as a consultant for several companies including IBM. He also has widespread experience in banking, risk management, mutual funds and financial analysis. Contact him today by visiting http://www.wealthsolutionsria.com/.

Learn more about Blair

Comments are disabled