Summer vacation means getting your home ready for the peak season for short-term rental operators. Here’s how you be ready for the summer rush.
What you will discover:
What should I do before advertising my vacation home?
Is short-term vacation property insurance required?
What safety measures should a holiday rental include?
What are some housekeeping guidelines for holiday rentals in between renters?
Is there any way I may reduce my tax due from rental income?
If you own a vacation house, second home, or short-term rental, you may be wondering how to increase your revenue during the summer vacation season. Vacation rental property owners may wish to check their listing, update their property, and enhance their busy-season approach as customers begin to schedule their summer travel plans. Whether you are just getting started or have been in the short-term rental industry for years, here are some answers to frequently asked concerns regarding renting to tourists during the summer season.
What should I do before advertising my vacation home?
Before you market your vacation rental, examine where tenants in your region discover houses to rent and how much others charge for comparable amenities. Aside from market research, ensure that renting out your home is lawful, and understand what legal actions and costs may be necessary. Check with your city and county to see if any rules apply to you and your property. You should also make sure that your condominium and HOA do not have any restrictions on holiday rentals.
Many vacation rental property owners install a key code combination lock or a key lock box on their door to make it simpler for tenants to enter. Other crucial things to address before selling your home are:
Property photographs and video.
A list of the facilities provided by the resort.
Property policies and procedures.
Practices for screening renters.
Checklists for pre-rental and move-out inspections.
You may want to consider hiring a property manager to handle the process, depending on how engaged you want to be in arranging with your tenants. A property manager will normally take a percentage of your revenue in return for finding tenants and ensuring that the rental is cleaned and maintained after each usage.
Is short-term vacation property insurance required?
You should verify with your existing insurer to ensure that your policy covers rental properties, depending on your current insurance coverage, mortgage requirements, and state or local legal requirements.
plans for short-term holiday rentals may be acquired as add-on plans from most insurance companies that offer business insurance. Experienced insurance brokers, such as our trusted partner Simply Business, can assist you in locating the appropriate products and coverage.
Even if you put your property on an online short-term rental site like Airbnb or VRBO, you may still be held accountable for any injuries or damage to your second home caused by a visitor or tenant, and a regular homeowners’ insurance may not apply while the property is leased.
What safety measures should a holiday rental include?
If you have short-term vacation property insurance, you should contact your insurer to see if they have a list of safety measures and devices that you may install and include in your rental. Installing safety measures advised by your insurance may result in rate reductions. Among the most popular safety features are:
Alarms and detectors for carbon monoxide and smoke.
Extinguishers for fires.
First-aid supplies.
Complete outdoor lights.
Secure the locks on your doors, sliding doors, and windows.
While smoke alarms are typically required by law, an alarm system will inform the fire department and police while you are away.
If you have a pool, spa, jacuzzi, or any other water feature on your property, make sure it is protected by a fence or a safety cover. Small children and animals may drown rapidly, and tenants may be unaware of the hazards. Make sure any dangers are fenced off or well labelled before renting out your home. For example, make certain that any home cleaners or chemicals are kept in a secure area, away from the reach of little children.
A good rule of thumb is to be excessively communicative with signs or written directions on how to use devices such as washers and dryers, stoves, dishwashers, jacuzzis, and fireplaces. Even the most attentive tenant has been known to cause property damage. Misuse of property features may be avoided with clear instructions. Furthermore, although it is critical that your rental home is not stark and empty, too much clutter may be distracting, prone to loss, and difficult to clean.
What are some housekeeping guidelines for holiday rentals in between renters?
Cleaning is necessary to ensure that tenants and visitors are at ease. Consider leaving ample time between bookings if you are renting out your house to many visitors at the same time. If you have a property manager, now is the time to be on the same page regarding summer planning, cleaning protocols, additional time between bookings, self or remote check-in processes, and any other vacation rental property management difficulties.
Is there any way I may reduce my tax due from rental income?
If you rent out your house for 14 or fewer days over the year, you do not have to disclose rental revenue. If you rent for longer than 14 days, you must record all rental revenue, although many expenditures are deductible. To deduct rental property costs, you must first decide which are personal and which are connected to the rental property.
Consider speaking with a tax expert to learn more about how your rental property may affect your taxes and total liabilities. Owners of rental properties are basically operating a company. As a result, many people may benefit from incorporating their rental property company for tax and liability reasons.
