Thinking about turning your home into a vacation spot?
Recent changes in the economy has left homeowners searching for ways to supplement their income. The latest trend is homeowners renting out their residence or rooms in their home for a weekend or longer to vacationers.
With Super Bowl 2017 coming to the area, some homeowners are jumping on the short-term vacation bandwagon in hopes of scoring big bucks.
There are also websites for homeowners to list their property for vacationers to search for a vacation rental. Vacationers utilize these sites, looking for unique places to stay during their trips. They like having an option of someplace other than a hotel or motel.
Before you decide to place your home up for a vacation rental, there are a few things you may want to consider, and Denisha Maxey, Better Business Bureau of Greater Houston and South Texas’ manager of dispute resolution/alternative dispute resolution, offers the following tips:
Check out companies. If you are hiring a company to manage the property rental, research the company’s BBB Business Review at BBBHouston.org before signing a contract or paying a fee. An attractive website or advertising on Craigslist is no guarantee that the business is legitimate.
Research policies. Check with your homeowners association, if you have one, to see if there is a clause restricting you from being able to use your residence as a short-term rental. If you are leasing your property, read your lease thoroughly, as some leases prohibit renting your property as a short-term rental.
Check with your insurance company. You need to verify if there is coverage if you are using your home as a short-term rental. You may need to purchase an additional policy or add endorsements to your current policy to make sure you are pro- tected. You will also need a place off site to store all of personal and valuable items. Develop a budget. Consider all of the costs associated with preparing your home. If it is your permanent residence, you will need to find an alternative place to live during the time your property is being rented. Additionally, there are fees for listing your property as a short-term rental on websites, as well as cost to have your home professionally cleaned before and after each stay. One way to recoup your money for these additional costs is to charge a deposit. Extra fees also should be charged for things such as additional guest and pets, if you will allow pets in your home. Make sure any fees that you charge and the money you spend are aligned with the profit you are looking to make; put everything in writing.
List your policies for guests during their stay. Leave instructions about pets, parties, additional unlisted guest, smoking, trash, and the condition the property should be left in. Clearly disclose any fees associated with not adhering to the instructions.
Consider further preparations. Additional prepping also will need to be done to make your home comfortable and inviting. Have extras on hand like toiletries, towels, sheets, coffee, tea and water; all are small tokens that guest will appreciate. Also, for security, conduct a walk-through of the property before renting and remove all valuables such as jewelry, money and electronics. Conduct a final walk-through before the tenants leave. Change frontdoor locks, before and after the rental of the property.
The Better Business Bureau is an unbiased nonprofit organization that sets and upholds high standards for fair and honest business behavior. Every year, more than 87 million consumers rely on BBB Business Reviews and BBB Wise Giving Reports to help them find trustworthy businesses and charities across North America. For information or to check the reliability of a company and find trustworthy businesses, visit www.bbbhouston.org, which includes our BBB Accredited Business Directory, or call 713-868-9500. Leah Napoliello is senior director of Investigative Services with the Better Business Bureau of Greater Houston and South Texas. Send questions regarding homeowner issues to Leah Napoliello, Better Business Bureau, 1333 West Loop South, Suite 1200, Houston, TX 77027, or e-mail her at lnapoliello@bbbhou.org. Include mailing address and phone number on letters and emails.