Homeowners have until November 1st to come into compliance with their Short-Term Rental businesses. According to the Los Angeles Ordinance implemented in early July, short-term rental operators are now required to register with the city’s “Home-Sharing” program (the registration portal can be accessed here). In order to meet city requirements, the property must be the owner’s primary residence, and if renter-operated, the renter must provide the landlord’s written and notarized approval. The city hopes limiting the type of property available to Short-Term Rent will encourage owners to Long-Term let their homes, providing available housing for individuals looking to settle in the area.
These regulations will apply to all Short-Term Rentals whether they have been operating for years or just joined the market. Once registered, owners must list their registration number on all public listings.
If an owner intends to rent for more than 120 days a year, they must apply for an “Extended Home-Sharing” permit. Additional requirements for extended home-sharing are outlined in the complete ordinance.
Questions to Ask your Current Carrier
With Short-Term Rental regulations being implemented in cities across the U.S., it has never been more important to make sure proper insurance coverage is in place. Operators continue to believe they are covered for their business through their homeowner’s policy or landlord policy, and don’t question whether they need extended coverage.
Proper Insurance prides itself in educating homeowners. Here are several questions which Proper recommends you ask your current carrier:
- If I entrust my property/home to a paying Airbnb/Vrbo short-term rental guest for 3 days, and that guest throws a party and vandalizes, damages, or steals my property, do I have property coverage to the limits of insurance?
- If I entrust my property/home to a paying Airbnb/Vrbo short-term rental guest for 3 days, and that guest breaks in to my neighbor’s dwelling unit and steals their property, does my liability extend?
- If I entrust my property/home to a paying Airbnb/Vrbo short-term rental guest for 3 days, and that guest assaults another person who then sues me, do I have liability coverage?
- If I entrust my property/home to a paying Airbnb/Vrbo short-term rental guest for 3 days, and that guest sues me for invasion of privacy, do I have liability coverage?
Give Proper a call today to discuss our comprehensive coverage for Short-Term Rentals – (888) 631-6680.
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