Renting Out Your Home For Special Events
Short-term rentals are quickly becoming a popular way for homeowners to make a little extra money. The Superbowl and other sports championship games, conventions, festivals, and university graduations are all big draws for potential tenants, but even slower times of the year can be good for your little business.
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Renting out your home for special occasions can be financially rewarding, but there are some key steps to follow before creating a listing.
Though you usually won’t have to pay income tax on properties that you rent for fewer than 15 days per year, there will still be other tax obligations. Be sure to check your state, county and city tax requirements and apply for the appropriate licenses in advance of when you wish to rent out your property.
Depending on your city, there may also be additional permits required for short-term rentals. Check with the appropriate governing bodies to see which are necessary and to ensure that your home meets all required health and building codes.
Housing tenants creates a liability for homeowners. Some short-term rental websites may offer insurance for homeowners, but if you are choosing to list it yourself, check with your insurance to see if you’ll need additional coverage before you rent out your home. It’s also a good idea to offer your tenants renters’ insurance. Ask your insurance company if they offer special rates for short-term renters.
Screen Your Tenants
Chances are if you’re renting your home for a special event, you won’t know your tenants very well. Not all people are great tenants, and the last thing you want are renters who leave a mess, steal, or don’t pay all of the fees. Conducting a credit check and background report on candidates can alert you to potentially serious issues that otherwise you may not have caught until too late.
Put it in Writing
Rental agreements can be lifesavers when it comes to protecting both you and your tenants. It’s fairly easy to find a blank form online and modify it with any extra specifications you may have for your rental. Have your tenant sign the document before you accept any deposits or fees, and keep it on file until after your tenants have moved out and you have completed a final inspection.
For any concerns you may have about renting your home out for a special event, give Real Property Management Pinnacle Tucson Tucson a call at 520-883-7368.