Owning a home in a popular vacation destination comes with many perks. You gain the ability to enjoy a fun location any time you choose and save money on travel expenses since the cost of your mortgage likely won’t be as high as renting a vacation home.
However, if you’re thinking of taking the next step with your home, you may have considered turning it into a vacation rental. This business venture is a great way to earn extra income and is a popular choice for many who own homes in popular tourist destinations.
When going through the process, you may wonder what the steps to renting out your home are. After all, it’s not as simple as putting your home on a rental site and attracting potential guests.
There are multiple factors, such as insurance, amenities, and guidelines, to consider before you deem your home ready to rent. So here’s how you can turn your home into a vacation rental.
Make Sure Your Rental Is Covered With the Right Insurance
Using your home as a rental property means you likely are outside the standard terms of a homeowners insurance policy. Since your insurance company will consider your rental a source of income, they won’t cover it under standard home insurance.
If you plan to rent your home frequently, you will need to consider a commercial or business liability policy. These options will offer you the coverage you need to rent out your home safely.
These policies can cover incidents such as property damage, guest injuries, and theft and save you a lot of money in the long run.
It’s essential to speak with your agent before deciding on your policy. Many providers may offer different coverage options, so you’ll want to ensure the option you choose is the right fit.
Prepare the Proper Amenities for Guests
Once your insurance is covered, you’ll want to start preparing your home for potential renters. Having the right amenities can make all the difference for those staying in your home.
While there are no set rules for what you must include in your rental, some items are nice to offer and can make guests feel extra special while staying in your home.
Providing items like paper towels, toilet paper, extra garbage bags, a change of sheets, dishes, and a coffee maker can help guests feel welcome and at home in your rental.
It’s also a good idea to ensure your property has nice decorations and quality furniture. You don’t have to spend a ton of money on these items, but be sure your guests can feel comfortable when spending time in your home.
You may feel these items will cost a little more to provide, but remember that vacation rentals are popularized by word of mouth and reviews.
If you go above and beyond to offer your guests great amenities, they will likely leave you with good reviews and recommend your property to others, bringing you more potential income.
Create a Set of Rules for Renters to Follow
House rules are an essential part of having a rental property. While you would like to think everyone will treat your home and belongings the way you would, often, that isn’t the case.
That is why it’s crucial to set up rules and ensure your guests know them beforehand. Have your rules written in your rental agreement so renters know and have plenty of time to read them before arriving.
There are no specific rules you must add, but some key ones to include could be:
- A maximum amount of guests for the property
- Parking policy for the property
- Reporting damage to the property as soon as possible
- Smoking policy inside the home
- Whether you will allow pets and if there’s an extra fee
You will decide which rules you want to apply to your home. Just be sure to make the rules clear and easy for guests to read through.
It’s also important not to go overboard on your rules. While it may be hard not to list out a massive list of things you wish guests not to do in your home, excessive regulations can put a bad taste in the renter’s mouth and make them not enjoy your property.
Set up Strong Security for Your Rental Home
You can take many security measures to protect your belongings and property. Adding a locked room such as a closet for your personal property is a good place to start.
There may be certain aspects of your home you don’t want renters to be able to use. Items such as tools and cleaning supplies used by your cleaning company may be things you want to keep out of guests’ hands. A locked closet can be the perfect place to store these items to keep them safe.
You’ll also want to purchase a lock box or keyless entry system for your home. These tools allow guests to check themselves into the property and come and go as they please.
Lock boxes offer a key to the home guests can access through a code you provide. Then, they can use the key for the duration of their stay before returning it when they leave.
Keyless entry allows you to send guests a code that they will use to both unlock and lock your door as they come and go. It’s often more convenient than a key, as guests can forget to leave a key when they are finished with their rental time.
Both of these entry options provide safe security for you and your guests. They ensure no unwelcome visitors find a way into your home.
From Home to Vacation Rental in a Few Simple Steps
If you own a home in a popular vacation destination, you may have been considering renting it out to tourists. While this business venture can seem scary initially, it is an excellent way to earn a passive income.
By taking the proper steps, such as getting the right insurance coverage, adding amenities for guests, setting house rules, and taking security measures, you can be well on your way to having an incredible vacation rental.
You’ll not only be earning extra income, but you’ll also still have your vacation home to use whenever you please, making the process a win-win.
Alexandra Arcand writes and researches for the insurance comparison site, ExpertInsuranceReviews.com. She is an insurance expert and avid traveler who enjoys sharing her knowledge with others.