Airbnb: Is It Too Easy to Start Your Own Property Rental Business?

In just a few clicks, you can list your property for rent and make some cash. But are you prepared to take on the risks of running a short-term rental business out of your own home?

Craftsman style vacation rental house

The Risks Associated with Renting Out Your Property on Airbnb

Airbnb and other online rental platforms have made it easier than ever for homeowners to rent out their properties and for guests to find a place to stay. No longer are travelers limited to costly hotels or shady private rentals. Now you can browse an assortment of listings on property rental sites and book your stay in just a few clicks. And this goes for property owners wanting to list their property for rent as well. Simply create an account, answer a few questions, and you’ll be ready to list your property on Airbnb.

In fact, it’s almost too easy to get started. This ease of use has left homeowners not fully understanding the risks involved with property rentals. Many are misled by how simple it is to list your home for rent but make no mistake – it’s a commercial activity that can be likened to running a hotel business. And because it’s a commercial activity, you should treat it as such and obtain an Airbnb insurance policy designed to cover you in the event of property damage or liability claims.

Why Airbnb’s Own Coverage Falls Short

Airbnb does offer its own property damage and liability coverage, also known as the Host Guarantee and Host Protection Insurance. But there are some major holes in this coverage that could cost you later. The Host Protection policy limits are shared with all hosts across the countries it serves, which could leave you out of luck if the coverage cap is reached before you submit a claim.

Despite these concerns, online rental platforms like Airbnb are a great idea that lowers the once-high barrier of entry for making money in the short-term rental business. If you have the right kind of insurance that helps covers short-term rental issues, you can enjoy some side income or even full-time income without the risks.

About the Author

Proper Insurance

Proper Insurance is the nation's leading short-term vacation rental insurance provider, with the most comprehensive policy on the market. We protect homes in all 50 states with unmatched coverage for your property, revenue, and business liability, customized to include guest-caused theft/damage, liquor liability, amenity liability (bikes, kayaks, hot tub, etc.), bed bugs, fleas, squatters, and more.


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