Last week, we talked about how to get your house ready to be a Sedona AirBnB or short term rental with another platform. Today, we’re going to talk about the legal issues involved with renting out Sedona real estate on a short term basis.
First, you need to secure your valuables. Jewelry, valuable artwork, your passport, and financial documents should all be locked away. If you are not going to be in your house while it is rented, consider renting a safe deposit box at your bank.
Then, make sure there are no hazards around your property. Stairways should be properly lit, for example. Wires should be secured so they are not trip hazards. Consider installing motion activated lights outdoors so people don’t get hurt if they sit outside at night. You don’t want to be held liable for injuries that occur due to obvious problems.
Talk to Your Insurer to Find out if Sedona Real Estate Is Covered for Short-term Rentals
Next, you need to think about insurance. Some platforms offer insurance for hosts if guests damage their property. A Sedona AirBnB is covered by the company’s Host Protection Insurance. The policy is covered by the basic fee you pay to AirBnB. It covers you up to $1 million if a third party makes a claim against you. Not every platform offers insurance, so read the fine print to find out.
You should check with your homeowners insurance company to see if damage from short-term paying guests is covered by your policy. Sometimes you need to add an endorsement or extra coverage for short-term rentals. If your insurance company won’t cover you, search for specialty insurance for short term rentals. Several large companies offer options, and there are also newer groups with innovative products. The cost varies based on the type of coverage, how much of the year you rent out your property, and whether you are on the property at the same time as short-term renters.
We hope this helps you as you begin as a short-term rental host. No one wants to think about bad things happening, but you need to have a plan to cover the unexpected.