New Regulations in Henderson, NV Boost Local Realtors and Short-Term Rentals
New regulations in Henderson, NV will begin in October allowing owners to enter the short-term rental market by renting out their primary residence or purchasing additional investments properties to list on popular platforms such as Airbnb and Vrbo. Previously, short-term rentals were limited to the owner’s primary residence and required that the owner be on site while guests stayed in the home.
Realtors in Henderson including Cindy Lake with Realty One Group and Keith Lynam with Nevada REALTORS, are excited for the potential business allowed by these new regulations.
Lake says, “Demand will bring more competition and investors want to own property and rent them out short term. It’s a lucrative business. It’s good for everybody.” Similarly, Lynam is quoted, “Calls come every day from would-be investors… Would this make a good vacation rental property?”
These regulations provide more freedom for short-term rental operators while still protecting the owners and neighbors. Each rental property must register with the city and pay a corresponding fee of $820 per property. Operators must install a noise monitoring system to track potential loud parties. Additionally, owners are also responsible for purchasing insurance to cover the short-term rental activity. Call and get a quote for your short term vacation rental today!
The treasurer for the Nevada Vacation Rental Professionals says, “This is probably the most fair, reasonable, logical ordinance that we’ve ever seen.”
A Concern with Definitions
Proper’s main concern with these regulations is a concern with definitions. Henderson City requires the owner and operator of the short-term rental to purchase insurance to cover the business activity innate in short-term renting. However, the city does not define what type of insurance or require proof of the insurance such as a Certificate of Insurance (COI).
Cities such as Tuscaloosa require $1,000,000 in liability aggregate and require that the city be listed as additionally insured on the owner’s insurance policy. These requirements protect both the city and the owner and their business.
Proper offers a policy specifically for the risks of short-term renting and meets and exceeds these new city ordinances. The Proper policy provides $1,000,000/$2,000,000 in commercial general liability insurance which protects the insured against claims of bodily injury or property damage they could be found legally liable. It provides coverage for business activity and extends beyond the premise, i.e. dog bit off premise.
Many insurance companies try to fit the risk into a policy rather than providing a policy fit for the risk.
To receive a comprehensive quote for your short-term vacation rental click here or give our office a call at (888) 631-6680 for an insurance consultation.