CBIZ VACATION RENTAL Insurance Blog

With the demand for vacation rentals increasing, so too have the vacation rental rules and regulations. Considering that these days it is a recognized and very popular industry, it makes sense that there should be some set of rules to protect the professional image of the vacation rental industry, after all. That being said, in many instances, objections from the broader community have meant that the regulations that cities impose are quite strict. 

Owning and operating a short-term rental property can be rewarding. However, owners have to manage numerous exposures related to lodging, and many offer amenities that can dramatically increase the number of risks. Assessing your exposures and taking the appropriate precautions can go a long way toward protecting your business.

Welcome to the world of running a short-term rental vacation property. While owning an additional property and renting it out to others can make a good amount of money, there is a lot that happens behind the scenes. With decades of experience helping owners insure their most prized assets, we have seen it all and spoken to many amazing people. 

The reality of renting out your home to guests is that vacation renters can, and often do, sue property owners and managers. When guests feel they’ve been harmed by the property owner’s or manager’s actions or negligence, they might find that their only recourse is to take a property owner to court. Those expenses can add up quickly. In addition, there’s the stress of wondering how you will pay a judgment if one is ordered. Without adequate coverage, your business and your personal assets could be at risk.

Short-term rental hosts are allowed to use various surveillance devices to protect their property as long as they are disclosed in the listings, including on Airbnb and VRBO and other vacation rental booking sites. Further, while not forbidden on the exterior of the property, they are prohibited in private spaces, such as bedrooms, bathrooms and other sleeping areas. Here are a few security measures you can take to protect your short-term rental.

Attracting the best guests for your property requires a proper vetting protocol to ensure guests leave your vacation rental in the best shape possible. While there will always be small hiccups when renting your property, preventing major violations such as criminal activities, scams, underage parties and violations that are susceptible to risks, injuries, and damages will give you the feeling of security as a host.

Some vacation rental listing sites provide host liability coverage for free or at a reduced cost as part of their service offerings for vacation rental property owners. These types of insurance policies are a good start in managing property owners’ risks. However, relying exclusively on host liability policies could leave you, the property owner, without adequate coverage.

Phishing attacks are constantly evolving in order to capitalize on our information. Phishing is the fraudulent practice of sending emails claiming to be from reputable companies to induce individuals to reveal personal information. As hackers get better and better at their game, it’s important to know how to spot a suspicious email to help your vacation rental business avoid a cyber breach.

The last thing you want your guests to be thinking about when they walk into your vacation rental property is their safety. You want your guests to know that they are protected and safe at all costs. As a short-term vacation rental property owner, you also want to do everything in your control to make their experience one to remember for the right reasons.

With many continuing to work remotely, there is a new craving for travel and working on “vacation” which has opened up a plethora of opportunities for the short-term vacation rental industry. Simply creating an office space in your rental home, offering a contactless check-in, or being more flexible with your bookings, could increase your business earnings exponentially.