Coldwell Banker Res Brokerage
Julia Rathkey, Coldwell Banker Res BrokeragePhone: (860) 876-6836
Email: [email protected]

Should I Turn My House into a Short-Term Rental

by Julia Rathkey 12/30/2019

Photo by Arek Socha via Pixabay 

In a bid to afford homes in high-value areas, many homeowners turn to income from short-term rentals to cover a high mortgage payment. You can benefit from this option with some caveats:

  • Location really matters. A lot. You might advertise your home as near the coast when it’s really 20 miles inland and get a few bites. But eventually, the reviews catch up with you, and you lose out. Be honest about where your rental sits. Market what is available: access to public transportation, quiet parks, sports arenas, theme parks, etc. only if they truly are accessible.
  • Consider hosting rather than leaving your home to strangers. That means you stay on the property while they are there. You’re in control of who comes and goes. Your renters can’t sneak in a dozen of their buddies without paying for them.
  • Make sure your HOA and municipality allow it. Many homeowners associations explicitly forbid subletting or short-term rentals, so if that’s your plan, read those pesky covenants, conditions and restrictions (CCR’s) before you buy. Municipalities also have codes regarding hospitality properties. Many require licenses, permits or fees, and some require occupancy taxes on the nights guests rent your home.
  • Your homeowners’ insurance coverage may not protect you from damage or liability when you’re using your home as a business. Talk to your insurance agent before you post your home online and pay the extra premiums to make certain you’re covered.

Before you decide to turn your home into a short-term rental, know the rules and the risks or the rewards may not be worth the trouble. Your real estate professional is your best resource for discovering properties in your area suitable for a short-term rental, so make that phone call today.

About the Author
Author

Julia Rathkey

Hi, I'm Julia Rathkey and I'd love to assist you. Whether you're in the research phase at the beginning of your real estate search or you know exactly what you're looking for, you'll benefit from having a real estate professional by your side. I'd be honored to put my real estate experience to work for you. With 9+ years of experience, I understand the market well and take pride in positioning your property for a lucrative sale or finding you a dream home. Honesty, integrity and communication are important elements of my work ethic and I will continually strive to make your real estate experience a positive one. Awarded the International Diamond Society award for sales production, I am in the top 10% of all Coldwell Banker agents worldwide, and am known for bringing buyers and sellers together.

A native of Connecticut, I am passionate about my state and share that enthusiasm with my buyers as they begin their journey, and I give great thought to finding them the perfect match. I continually work on ways to position my clients for positive results and use social media in various forms to market a home, ensuring a wide and targeted audience. Please sign up for my blog posts to learn useful tidbits about selling and buying real estate, and check out my video testimonial on YouTube or my Facebook page. You can also learn more about me on Instagram, Twitter or LinkedIn. I'm happy to answer any questions you may have so feel free to reach out!