For many of us, taking off for a holiday provides much-needed balance between life and work. Yet having to deal with high mortgage payment means that many of us cannot afford to leave without having some tenants to make up for the expenses.
Nowadays, renting a room to a tenant for a short a period of time is no longer uncommon in Maui. People come and go even if it is not vacation, and in truth these people aren’t staying for long. So they need a place to stay for a couple of days that is not as expensive as the hotels along the bay. That’s when you offered your house to the short term rentals market.
Before opening your house to strangers, here are some ups and downs that you would want to know about the business.
Advantages of Short Term Rentals
Earn Supplementary Income. When you open your doors to short term tenants, you are grabbing the opportunity to earn extra income. A studio type apartment usually cost around $79 to $150 per night depending on the location. A huge house with one bedroom basically costs around $150 to $229 per night. Bed space or bedroom alone cost below $100. From these rentals, you can use what you have earned to pay your bills and mortgages or cover the cost of your vacation.
House-sitting opportunity. If you are in a vacation, getting some tenants will not leave your home empty. While you are away someone could take care of you house. To steer clear from possible damages and ensure compliance, you can offer a lower rental rate subject to the condition that the tenants should maintain the house.
Meeting New People. That stranger renting in your house could become your family. Especially if you are renting only a section in your, there’s a high possibility that you’re going to get along well together with the whole family as time flies.
Loss and destructions. Some risks are associated in renting your house for a short time and you need to be ready with these, when you make your decision. This time you are letting a stranger into your house. In one way or another, your tenant may get access into your own belongings or let a third party enter your house. Your house is also expose to perils such as fire incidents and many more.
No insurance coverage. Before renting out your own home, make sure that you have insurance coverage and third person liability coverage. This protects you from contingent events that may occur while you are away.
Prohibition against short term rentals. Just because it’s your own doesn’t mean, you are free to do anything with it. You still need to check with your local homeowners association whether they allow short term rentals. If the policy does not allow it, you may not be able to rent your property.
Nevertheless, short term rentals is not bad all. A possible solution to the potential risks is for homeowners to leave specific instructions for their renters. As much as possible, talk to your tenant sincerely and give ground rules on the type of behavior expected by the neighborhood. Homeowners can also ask for advance cleaning deposit to reduce the bad impacts of potential damages.