Renters Did What To My Home?
May 13, 2015
The city of Austin has become a magnet for large-scale events like SXSW, ACL Fest, and the newest addition, Formula 1 racing. These events draw a lot of visitors to our city so hotel room costs are at all-time highs. Austin residents experience more troubles with traffic, at the grocery store, and with “life as normal”.
Some Austin residents have taken the step to mitigate their life disruption by scheduling their vacations while these events are going on. Taking the time to get out of the city for a little R&R. This leaves their beautiful homes and apartments empty at a time when hotel rooms in the metro area are completely booked. So why not just rent out your home while you’re away? Make a little money for your inconvenience? The lure of quick and easy cash comes with some risks though.
A couple in Canada recently discovered that risk. After they rented their home out for 3 days, they arrived back to see their beautiful interior in shambles. Spilled drinks and food smeared into their flooring, furniture ruined beyond repair, and angry neighbors who had to call the authorities about noise. At one point, there were at least 100 people in this house located on a once quiet neighborhood.
Even the most stringent background check couldn’t stop their home from being destroyed by renters who weren’t concerned about someone else’s belongings.
We mention this because short-term rentals is a hot topic in Austin. Austin property owners have the opportunity to make a lot a money very quickly by making homes available for rental for days or weeks at a time. Before entering into a short-term rental agreement, make sure that you understand the limitations of your homeowners insurance policy. The majority of homeowner policies do NOT have an allowance for short-term rentals. There is just not enough known about the possible risks for insurance companies to be willing to take on the risk.
Avoid the possible disappointment. Involve your insurance agent before entering into a short-term rental agreement. The knowledgeable agents at Watkins Insurance Group will provide guidance should you choose to rent your home out for the short term or long term. Give us a call. We’re here to help.