If you want to travel but don’t want to give up your home, renting out part of it can be a great way to make money while also enjoying some time off. You’ll need to follow some rules and ensure you’re prepared for guests when they arrive at your door! Here are my tips for partially renting out your home whilst you travel.
Find Out What the Rules Are
Before you begin renting out your home, there are some essential considerations. First, make sure your city allows short-term rentals. This method won’t work if you live in an apartment building where short-term rentals aren’t allowed. Next, check whether you need permits and registration with the city to rent out your house as a short-term rental. If so: Get everything sorted out before listing your property on any platforms.
Find Out if You Can Rent Out Part of Your Home
As with any other home, there are some simple questions to ask yourself before deciding whether or not you’re ready to rent out part of your house. The most important question is: “Is this a safe and legal option for me?” Some properties—like a detached garage, yard, or driveway—may not be suitable for renting out.
For example, it might be illegal in your area to rent out a detached garage (even if the tenant has no access to the main house). However, many rental options can still work well if they meet specific criteria. You should also consider whether you have enough space and amenities for tenants before deciding how much space you want them to take up in your home.
Put Your Car in Storage
If you are not going to be using your car to travel, you may want to find somewhere to keep it safe whilst you travel.
- Check the storage cost – This will depend on where you live and the time you need to store your vehicle. The cost to rent a garage in Los Angeles is around $250 a month. A small price to pay for peace of mind.
- Insurance costs – If the vehicle is in storage, getting insurance coverage will be more challenging because no current driver is listed on the policy. You may have to purchase an umbrella policy or gap insurance to protect yourself from liability claims if someone gets into an accident while driving your car in storage.
Secure Your Place
Now that you’ve decided to rent your place, it’s time to secure your home. The first step is getting the renter’s insurance. Not only will this protect you in case of theft or vandalism, but it’ll also protect any guests staying at the property while it’s being rented out.
Next, talk to your landlord about their rules around renting out the property—and don’t forget about any restrictions on short-term leasing! For example, if it’s against their policy for tenants to rent out their apartments for less than 30 days or over 60 nights per year, those might be terms you must abide by. You may also want to set up a system to remotely monitor things like air conditioners turning on and off as needed during hot summer months.
Last but not least, it’s time for an inspection! Make sure everything works properly before handing over keys (or virtual ones) with confidence so when guests visit, they won’t have any problems using appliances like washers/dryers, which require electricity access too.
Prepare Your Home for Vacationers
Before you start renting out your home, you must do some essential preparation. Strangers and potential guests will occupy your home, so it needs to be clean, tidy, and ready for use.
Here are some things you should consider before you start:
- Cleaning the house – it’s a good idea to give your Airbnb guest a clean space to stay in. Although they may not have much time in their busy schedule, they’ll appreciate knowing they’re staying somewhere fresh with all amenities available.
- Towels, bedding, and other essentials – ensure there’s enough of everything, such as towels, bedding, and cleaning products, for the duration of their stay. You don’t want them running out mid-stay! This can also help encourage return visits from past customers if they had a positive experience with your place.
Hire a Property Manager
How to find a property manager:
- When looking for a property manager, it’s important to consider their experience and credentials.
- An excellent way to do this is by asking for references from other people they’ve managed properties for. You can also check whether they are members of the Property Managers Council (PMC), which requires its members to meet specific standards and take ongoing training courses.
The job of a property manager is varied but generally involves:
- Collecting rent on behalf of the owner
- Keeping an eye on the condition of your home or investment property through regular inspections
- Acting as an intermediary between owners and tenants or contractors
Get the Most Out of Renting Out Your Place
Renting out your home is a great way to earn extra money, especially if you’re travelling. But how do you get the most out of renting out your place?
Firstly, ensure you know what the rent is in your area. You can find this information online (or ask around) and then set a fair and competitive price with other properties in the neighbourhood. Just remember that people are always willing to pay more than others, so don’t go too high!
Takeaway:
If you’re ready to take the plunge into being a landlord, there are six things you need to know.
- Make sure your home is covered by insurance.
- Have a proper contract in place, so everyone knows what’s expected of them and who will cover what costs.
- Find yourself a good property manager who will deal with tenants and property repairs (and costs) for you.
- Ensure that any potential tenant has enough income to pay rent on time every month (and won’t be able to default)
- Have the house professionally cleaned before letting it out – inside and out! If any damage occurs while they’re living there, they may try and claim against you based on lack of cleaning or maintenance, which could result in huge bills if this happened frequently enough.
If you’re looking to travel the world and still make money, renting out a room in your home is one of the easiest ways to do it. While it may seem complicated, it isn’t that hard if you have all the correct information. Of course, you should always consult a professional before trying anything new in real estate or travel planning, but the advice given here should give you some good starting points.
