Having a vacation home is a great way to invest your money. It makes it easy when you travel and allows you the luxury of having a home away from home. Choosing to rent it out when you aren’t using it is a great way to add to your existing income. However, there are a few tips to remember when dealing with vacationing families who rent your second home. It’s important to do everything you can to protect your investment and secure your property.
Differences in Location
Differences in location can make it difficult for you to keep an eye on your property. It may be in your best interest to hire a property management company to oversee your property. They will make sure that it is thoroughly cleaned after each rental and that any necessary repairs are taken care of quickly. They will also make sure that your property is ready for you when it is time for you to take your vacation.
Rental Terms and Policies
Always go over your rental terms and policies with your new renter. Whether they plan on staying for two days or two months, they must understand your expectations and agree to the terms and policies you have in place. Having a written contract or lease agreement is the best way to ensure that you have done everything possible to protect your property. Make sure to always have a copy on hand if questions arise.
It’s essential to protect your property from every possible type of risk. This includes flood insurance, earthquake insurance, hurricane insurance, and umbrella insurance. While the first three will depend on where your rental property is located, umbrella insurance is a must to protect yourself from large claims if one of your renters is injured on your property. Your insurance agent will help you determine which type of policy is necessary when it comes to additional forms of risk.
Type of Home
The type of home you have is also important. If your home is fairly new and has more modern amenities, it may be easier to keep tabs on your property by having a security system with cameras in place. It’s also important to know how the home is constructed and what types of materials are used. All of this information is important when it comes to making repairs and carrying the appropriate types of insurance. Talking to your insurance agent will help you figure this out.
Condition of the Home and Property
The condition of your rental home and property should also be taken into consideration. Keeping your home well-maintained is essential, but it may be difficult to accomplish if you don’t live close by. Upgrading appliances or renovating your vacation home to keep it up to date is a great way to protect your investment. It also ensures that everything is in good working order when it comes to opening it up as a rental property. People will pay more to rent a home if it is in great condition and well-maintained.
If you plan on using your vacation home as a rental property to generate extra income, call the experts at Humble & Davenport Insurance Brokers, Inc. Each of our agents has the experience you can rely on to ensure that your rental property is fully insured and protected against various forms of financial loss. Call and schedule an appointment today.