Renting Out a Room Can be a Risk
Airbnb wants homeowners to make money. A home could easily be converted into a full or part-time business by renting out a room. Not every home is using every room and travelers may be willing to pay a decent amount of money per night or week for the space. People may even choose to pay for sleeping on a couch in a basement. Those wishing to make a little extra money with their property absolutely should look into the opportunities Airbnb and similar online services offer.
Do not, however, shirk any responsibilities with an insurance company. And do not assume all tenants are going to have the best interests of the renter at heart. The blog at Wealth Solutions covers some of the very serious things to think about when looking to be an “amateur renter”. Richard Blair runs Wealth Solutions with the goal of helping people put their money to use in good investment vehicles. Blair also has experience with providing insight into financial management. Avoiding a total catastrophe renting out a room definitely helps ensure personal finances are put at excessive risk.
A homeowner who takes out an insurance policy on a first or second home that excludes commercial activity may not be covered for damages and liabilities when renting out a room. A minor accident could lead to major financial costs. Imagine if the renter causes a flood or, worse, a fire in the home. The insurance company may not be obligated to pay for the losses.
Don’t take anything for granted when it comes to an insurance policy. Doing so could prove to be a very regretful decision.
And never assume the person renting a room is “okay” just because a credit card was used to book the room. The assumption is the person is going to be more responsible since he or she has revealed a true identity. No one knows how a stranger is going to act. As such, it is critical to be very careful and deliberate about any decisions to rent a room. Maybe doing so is not worth it in the end.
Richard Blair’s Wealth Solutions firm is always available to those in the Austin, TX area looking for investment and financial advice. Blair has 20 years of experience in financial services. The blog is reflective of the company and reading more blog entries should paint a clearer picture of what Wealth Solutions offers.