We are seasoned Airbnb guests ( almost 50 stays ) and are in the process of becoming hosts to our own property. ( a single family house ). We were aware of changing regs and tax issues but had no idea what an ordeal getting our property up and running would be. We have been landlords for decades so we weren’t starry eyed or unrealistic about hurtles. We were determined to have a legal and properly insured Airbnb. Insurance turned out to be a big deal. Underwriters for our homeowners policy said forget it, they refused to cover the property. We were forced to get a commercial policy which kicked in draconian inspections, resulting in costly up grades ( ie a professionally monitored security system ) all at double the cost of our previous homeowners policy. They also forbid the use of our beautiful and brand new fireplaces, The fact that the property is now considered “ Commercial “ required all contractors working on the property to pull Commercial permits. These resulted in more inspections and costly upgrades like enlarged bedroom egress windows, upgraded electrical service, etc, etc.
I’ve been told most Airbnb rentals are not properly permitted and definitely not adequately insured. My insurance agent said they would NOT cover claims for owners renting short term under the radar. It’s all been an eye opening experience.
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I don’t think any of that is news to most regular readers here.
Are you going to rent out your entire home or just part of it. Will you be in residence or a remote host?
Whole house rental, I live 1/4 mile away
Permitting and various other legal issues vary from location to location, state to state. Sound like Vermont is really tough.
There are a few other options besides “commercial” insurance that can be found, and at lower cost. But again, they may not be available in all areas – here is Southwest Florida insurance is particularly expensive and because of hurricanes few companies insure homes here.