With the increase of online platforms where people in different locations in the United States can get tenants for short term tenancy agreements, it is has also become increasingly costly for many of the millions of people who use some of these sites in the country. These online sites are however beneficial to the homeowners because they can get income from renting several rooms of their apartment to travelers visiting their area for a few months. This type of tenancy arrangement is also beneficial to the travelers because they are able to get accommodation before they visit the particular area. However, there are certain risks that attach with the use of these online platforms that are used widely by many people in the United States of America.
First, it is important for homeowners to note that these online platforms that they use to get tenants for short term tenancy agreements do not cushion them against any risks that may occur during the tenancy period. On the contrary, most of these sites exclaim liability at the time when one is joining the site. At the end of the day, the landlord ends up bearing the burden of any losses that may be incurred. Although some online platforms provide for a compensation plan of sorts, it is often a long tedious process that only works when the person the person who has incurred losses has exhausted all other available means to get compensated for damages.
Having looked at this, it is necessary to point out that the landlord or person leasing out part of their apartment most importantly ought to consider the issue of finance. Some of the unfortunate risks that may arise out of the tenancy agreement is theft of the landlords property, blatant destruction of the homeowner’s property by the tenant, disagreements between the landlord and the tenant that may lead to the tenant’s refusal to pay rent, and injuries that the tenant may suffer at the home. In the event that the person seeks compensation from his insurer under the home policy, it is likely that the claim will be denied because the apartment was used for purposes other than the apartment being a home. To ensure that you are sufficiently protected under your home insurance policy, it is necessary to speak to your insurance provider to include a clause on the short term tenancy business. In the alternative, it is wise to get a business cover since you are engaging in rental business.
It is also necessary for the individual to consider the legal requirements that he or she ought to comply with. These include payment of taxes, opening the premises for inspection and receiving a license to operate the business. This requirement is mostly made by the local authorities and if one isn’t sure, he or she can visit a lawyer’s chambers for advice.
Richard Blair is the founder of Wealth Solutions. The firm deals through its founder advice clients on smart investments that they can engage in to grow their wealth for their sake and their family. The services include advising clients on investment, retirement and strategies to preserve and grow their wealth.