Roller coasters are fun for many people, a thrill ride that provides a few minutes of excitement. But in enjoying the ride, most people don’t think about the careful planning and preparation that made sure the ride was a safe one. Architects, Engineers, and Planners made sure you were protected and safe. Similarly, renting furnished homes can be a thrill, too, and a lucrative income stream. But like your favorite roller coaster, it isn’t without risk. Knowing and preparing for those risks can save you and your bank account from a bad experience, not to mention give you more piece of mind that your investment is protected. Since you need to protect yourself, here are six ways you can lower your risk.
Getting the Right Insurance When Renting Executive Properties
Insurance is an obvious first step. But some people assume their homeowners or renters insurance covers them if a tenant damages their home or is injured on the property. That often isn’t the case. When you use your home as a commercial entity like a corporate rental, you may need commercial insurance. Check your Homeowners or Renters Insurance policy carefully, and consult your insurance agent and cover your apartment or home with the right policy.
Check out CHBO’s which can reduce or eliminate security deposits and protect from accidental damages to your rental property. This coverage protects both sides when accidents happen.
Credit/Background Checks, and Tenant Reviews
One simple way to understand the history of a tenant is to see if they have left reviews at previous properties. Those reviews may give you some insight whether or not a potential tenant has a history you’d want to avoid.
Background and credit checks are other generally accepted ways to vet or verify the reputation of potential tenants. For around $20, you can make sure that the tenant has the ability to pay the rent. Have the tenant go to where, for security reasons, they can enter their own sensitive information, to run the check.
The says this about background checks:
“A background check provides an additional layer of peace of mind for you and you may want be sure to do this for longer-stay tenants for high-end, multi-million dollar properties. Login to your MyCHBO account and click on the
Background Check link to identify companies you can work with to conduct a background check. Remember, background checks provide details on a tenant’s criminal history (beyond a credit report), so it will be more costly
to conduct and some clients may balk at it. Use your judgment when deciding the right course of action for you. Another point is that a background check can deter potential unruly clients, as many will not agree to it if they have something to hide. It can give you a legitimate and legal reason to turn down a tenant.
Yes, you can pass the cost of a credit or background check on to the tenant even if they don’t rent the property. Just make sure you’re upfront with your prospect about such fees.”
Sadly, there is plenty of evidence out there that these steps are necessary. If potential tenants make excuses, lie, try to book at the last moment, understand that these are red flags. Protect yourself.
Set Clear and Thorough Usage Rules for Your Short-Term Apartment
Clear communication can make or break your experience. 90% of people will follow rules if they’ve been clearly posted or communicated. If you aren’t clear about allowing pets (or what types), parties (occupancy limits), commercial use, or other potentially damaging uses of your short-term apartment, then expect that someone will eventually cross these boundaries. And if your property does suffer some kind of damage, it will be much more clear-cut when the repair bill comes due.
Don’t Give Out Your Home Address on Your Listing
One pitfall of the Internet age is how it can make life easier for criminals. A burglar will spend time and effort understanding your travel patterns to minimize the chance you are at home when he breaks in. You’re already providing a photographic tour of the valuables in your home, plus a calendar of when the home is empty. For initial leads, providing a general proximity is plenty of information. Once you begin communicating directly, the home address can be shared. When you post your exact corporate rental address on your listing, you provide the third and final piece a thief needs. It doesn’t matter how robust your security system is, don’t make it easy for criminals to target you.
Maintain your Furnishings and Your Home
Wear and tear happens, whether your home is occupied or not. All the high-end furnishings you’ve provided have “useful life” spans, and many have preventative maintenance routines you can follow to keep them in tip-top shape. Inspect and service the building systems regularly, keep them clean, and when maintenance is needed, take care of it promptly. A property management service or caretaker can typically handle this job for remote owners. If a damaged or defective furnishing that you didn’t make a reasonable effort to repair injures a tenant, you could be liable. Remote wireless locks are an upgrade you could consider so you could ensure safe turnover without a physical key.
Follow the Legal Requirements
Finally, property owners are responsible for investigating and adhering to all local regulations including, but not limited to permits, licenses, occupancy taxes, and safety compliance regarding renting furnished homes. Consult local laws or experts in local laws to makes sure you are adhering to all the laws and guidelines for your community. Your local, municipal, and state laws may vary, but typically income from corporate rentals is subject to taxes like any commercial venture, so be sure and allot for tax payments if that’s the case.
As you can see, a multi-layered approach is needed to ensure your executive rental is as safe as it can be. Don’t expose yourself to unnecessary risk – as they say, an ounce of prevention is worth a pound of cure.