Short-term vacation rentals are nothing new, but apps like Airbnb and VRBO have resulted in explosive growth in this industry. Today, a whopping 4 million hosts have 7 million active listings on Airbnb alone. The good news is that you don't have to sign up through an app that is overly saturated with options to make your El Paso home a vacation destination.
Do you want to know how to make your home rental ready? Read on to learn about vacation rental insurance coverage and much more!
Know Your Home's Value
If you want to generate interest in your vacation property, then you need to make sure it is properly priced. Do some comparison shopping with similar homes in your neighborhood to get a feel for the value.
You'll also want to consider dynamic pricing. Your home's value may rise or decrease depending on the season or important events happening in your area. If you aren't sure about how to price your home, enlist the help of a local property management company.
Check Your Local Laws
The prevalence of short-term rentals has resulted in a number of restrictions on how those rentals can operate in cities across the country. El Paso is no exception. Currently, the City of El Paso is weighing its options on how to regulate short-term rentals.
Don't forget that if your home is within an HOA, there may be further restrictions. Staying on top of local laws and regulations is absolutely critical.
Get Vacation Rental Insurance Coverage
When it comes to vacation rentals, standard homeowners and landlord insurance may not cut it. In fact, many policies specifically state they do not cover damage or accidents resulting from short-term rentals. There are many insurance options out there to cover homeowners who use their homes for short-term rental income, however.
Review your current homeowners insurance policy and check to see if they offer specialized coverage for this purpose. If they don't, take some time to shop around and find a good policy.
Draft Home Rules
Before you accept your first reservation, create a list of house rules for your guests. Can they have pets or parties in your home? What do they have to clean up before they leave?
Everything that you expect your renters to do should be in writing and agreed to by the renters before they rent out your property.
Are You Ready to Generate Rental Income?
Running a vacation rental is a lot of work, but it comes with a lot of rewards, too. Be sure to take the time to get all of your ducks in order, including getting vacation rental insurance coverage and developing your knowledge of local laws. With a little due diligence, your home could be the hottest vacation property in El Paso!
Are you drawn to the idea of generating vacation rental income from your home, but stressed about the day-to-day management? We have the best news, there's a way to manage your vacation rental without lifting a finger! Contact PMI El Paso today to learn how we can help you.
