home & living
According to Square One, renting out your home can truly provide a significant residual income, to offset your mortgage or travelling costs or just to make some extra cash.
We’ve all heard of vacation rental websites such as VRBO.com and AIRBNB.com. They’re user-friendly and informative websites that allow you to browse rental properties – from condos to mansions – available all over the world.
You can filter down to area travelling, waterfront, pool on site, and more. The sites often offer accommodations that are cheaper than hotels, and that provide all the comforts of home, they are a fantastic option for travellers who want luxury and style.
Once you see how well these rental properties do for generating income, have you ever considered that you could cash in on this trend? Perhaps your home has a lot to offer – maybe it’s oceanfront, near a hot spot tourist destination, or a peaceful vineyard?
It can be a great opportunity for the right people – however, there are some serious things to consider before you take the plunge. Renting your home is not a simple, one-step process. Many channels need to be navigated, such as:
Check out your Municipal or Strata Regulations around Renting
If your home is part of strata, or if you have a single detached home, you should always do some research around rental rules. Check the rules with your city’s zoning department and your strata association board, if applicable.
Ideally, consult a local real estate lawyer to ensure that you are within your rights. This consultation will help to protect you and your renters.
While renting out your dwelling may seem like a great income generator, we’ve all heard horror stories about renters that trash the property, host massive parties, cause problems and worse.
You have to make sure that you have insurance to cover any of this damage and to make sure you are screening your tenants beforehand to avoid this in the first place! Which brings us to the subject of damages:
Ask for a Damage Deposit and References
References may only be necessary for long term rentals – however, a damage deposit is essential. If the renter damages your dwelling, you keep their cash.
You can also draft a rental agreement that will protect you from issues and liabilities. It can also include an occupancy agreement which will prevent the renter from bringing their whole fraternity with them!
Price your Home Right
Do your research on other dwellings that are for rent in your area and find out where they’re priced. You want to be competitive – not overcharge, but not be the cheapest, either. Your price will also depend on the location, your home’s size and the amenities you offer.
Also, consider costs such as maintaining your home while you’re away from it, paying a housecleaner, and if you’re renting it out often, you may want to employ a property manager to do much of the legwork for you.
Overall – Be Cautious
By using websites such as AIRBNB and VRBO, you are mostly protected against any horror stories or significant losses – so if you are going to start renting out your home, it is advised to go through this sort of channel.
BUT, don’t forget your additional home insurance on top of that – you can never have too much insurance!
When people think of the protection that they need, they hardly ever think about the need for travel insurance. However, if you have been planning and saving for a big family trip for a long period must you take measures to guard the cash that you have spent on your journey. After all, it can take only one accident or regrettable event to bring your journey to stop, and you will want to be secured by protection plan created for the risks and failures that can occur while on holiday. You will find many companies provide vacation coverage and my home insurance.
What Does Journey Insurance plan Cover?
According to squareoneinsurance.ca, travel insurance usually includes termination or disruption of your journey, lost or thieved luggage, healthcare urgent situations and common journey assistance services. Departure date is developed protect those risks and failures that are not secured by a common insurance plan, although certain exceptions such as an act of God, deliberate loss, or activities of the government still apply traveling plans. Limitations and circumstances differ on each plan, so it is best to inform yourself on such conditions for each plan that you consider.
How Much Protection Will I Need?
I can look at my vacation coverage and my home insurance. I can see that the quantity of coverage that you I will need for each will differ based on your location, the all-inclusive costs of the journey and the regularity with which you travel. If you have reserved a costly journey, for example, you will want to make sure you guarantee your journey against unconscious termination or disruption for most if not all of the quantity you paid for your journey. If you are moving costly items in your luggage, you will also need to take consider that when selecting coverage boundaries. Emergency healthcare cost coverage is usually offered as an excess quantity over your primary wellness care coverage.
Does My House, Auto, Life or Health Insurance plan Cover Me While on Vacation:
Your home, auto, wellness or life protections may protect your failures while you are on holiday although many guidelines will limit that coverage to certain boundaries and insurance coverage and have a specified area in which you are secured. If you find yourself travelling outside of the area of your plan, you will no longer be secured under the conditions of your insurance contract during the time that you are there. You should ask your insurance company or an associate from your service provider about the details of your guidelines as they correspond with coverage offered while traveling.
Purchasing vacation coverage and my home insurance is a great way to give yourself the satisfaction that comes with knowing your investment of cash is secured. Please remember that the circumstances, coverage amounts and secured failures will differ from plan to plan and that this article is intended only to provide a common summary of travel insurance. Seek advice from with your insurance company or associate when considering and selecting plans so that you are fully informed of all of the appropriate circumstances.