There are certain things your clients must know before renting out their homes as an Airbnb to people they do not know. Ultimately, renting out a home as an Airbnb is a solid way to make some extra income. However, it does come with some risk.
An Airbnb: Things Your Clients Must Keep in Mind
Here are some things your clients should keep in mind before they list their homes on Airbnb:
Protect Their Property
The first thing your clients should do is protect their property through rental insurance. It’s a type of insurance that will protect against any damage that may occur to the property when rented out. Your clients need to check with their current homeowners or renters insurance policy to see if they have the proper coverage or need a separate policy.
You can help them by finding the right rental insurance policy and answering any questions about coverage and what their policy should include.
Understand the Laws
Depending on their state and municipality, laws may regulate long- and short-term rentals. For example, in New York City, renting an entire apartment for less than 30 days is illegal unless the tenant is also present.
Before listing their home on Airbnb, your clients should check with their city or town hall to see if any restrictions exist. By doing so, they can avoid any legal trouble in the future.
Identify Overhead Costs
Your clients should also know of any overhead costs associated with listing their homes on Airbnb. These can include paying for professional photos, insurance, or even hiring a cleaning service to keep the rental in tip-top shape.
Often, these costs are manageable and worth it in the long run, as they can help attract more guests (and better reviews!). But your clients must know about them upfront, so there are no surprises down the road.
Determine the Right Price
Once they have identified the overhead costs associated with running an Airbnb rental, they can begin to look at what price point would work for their home. They’ll want to balance making a profit and attracting guests. An excellent place to start is by looking at comparable properties in the area and seeing what they are charging.
Provide Additional Value
If they want to position their home as a premium or luxury rental on Airbnb, your clients should provide additional value to guests. It might include leaving a bottle of champagne or wine in the room, providing robes and slippers, or stocking the pantry with snacks and drinks.
Another simple yet effective way to add value is by providing a welcome basket with information about the local area and attractions. It is a great way to help guests feel at home and make the most of their stay.
Screen Guests
Lastly, if your clients are sure about renting their home as an Airbnb, they should take measures to screen their guests. It includes requiring a government ID, reading reviews from other hosts, and conducting interviews (if possible).
Hosts should also set clear expectations for their guests in the listing description and house rules. By doing all this, your clients can help ensure they have a positive experience as an Airbnb host.
Takeaway
Renting out a property on Airbnb is a reliable method to earn some extra income, but there are a few things your clients should know before they get started. Aside from helping them protect their homes with rental insurance, you can also advise them on the following tips to make their experience successful.
About Snyder Specialty
Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039.
