All Posts tagged short term leases

That extra income is tempting...

Many of my clients, friends and acquaintances rent their homes and even rooms in their homes during the Coachella Valley Music & Arts Festival.  Now that it’s almost 3 weeks long-including the Stagecoach Festival-there is some Cash to be made.  There are a few things to beware of however..namely, your Homeowner’s Insurance.  Do you have it at all?  If not..get it!

Homeowner’s insurance covers owner occupied structuers, your personal property such as furniture, TV’s, clothes, personal liability for lawsuits and medical bills resulting from injuries sustained on your property.  But..if you do decide to rent your property for a weekend or week or whatever..check into two things.

1.  Is there a bed tax?  Check your City Rules with regards to short term rentals.

2.  Purchase a Short Term Vacation Rental Policy.  (NOT the same thing as a Landlords’ Policy which is for long-term leases)

Renting for short term has different insurance requirements than if you were to have a long term rental..normally over 6 months defines long term.  Long term leases do not have as high risks as short terms.  Why?  Because when you rent long term, you normally supply minimal appliances and furnishings.  When you rent the home you are living in, or your vacation home, it usually has lots of furnishings and personal items with it.

Be sure to check with your Insurance Agent BEFORE you rent!