How do you manage the risks of short-term rentals?

1 Choose the right platform

Not all short-term rental platforms are created equal. Some offer more features and support than others, such as insurance coverage, verification systems, reviews, and customer service. You should research the different options and compare their fees, policies, and benefits. Choose the platform that best suits your needs, goals, and budget.

2 Screen your guests

One of the most important steps to manage the risks of short-term rentals is to screen your guests before accepting their bookings. You can use the platform's tools and filters to check their profiles, ratings, reviews, and verification status. You can also communicate with them directly and ask them questions about their travel plans, expectations, and preferences. You should avoid guests who have negative feedback, no reviews, or incomplete information.

3 Set clear house rules

Another way to manage the risks of short-term rentals is to set clear and reasonable house rules for your guests. You should specify what is allowed and what is not, such as smoking, pets, parties, noise, parking, and check-in and check-out times. You should also explain the consequences of breaking the rules, such as fines, cancellation, or eviction. You should make sure your guests agree to the house rules before confirming their reservation.

4 Protect your property

You should also take measures to protect your property from damage, theft, or vandalism. You can install security cameras, locks, alarms, and safes in your rental property, but make sure you respect your guests' privacy and disclose any surveillance devices. You can also remove or secure any valuable or personal items that you don't want your guests to access or use. You should also document the condition of your property before and after each stay and report any issues to the platform.

5 Get insurance coverage

One of the most essential ways to manage the risks of short-term rentals is to get adequate insurance coverage. You should not rely on your homeowners or landlord insurance, as they may not cover short-term rentals or have exclusions or limitations. You should look for a specialized insurance policy that covers short-term rentals and provides protection for property damage, liability, loss of income, and legal expenses. You should also check the platform's insurance policy and see what it covers and what it doesn't.

6 Follow the laws and regulations

Finally, you should follow the laws and regulations that apply to short-term rentals in your area. You may need to obtain a license, permit, or registration from your local authorities. You may also need to pay taxes, fees, or levies on your rental income. You should also comply with any zoning, health, safety, or environmental standards that affect your property. You should consult a lawyer or an accountant if you have any questions or doubts about your legal obligations.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?