Renters of rooms, apartments, and houses should be aware of the risks and liabilities involved when renting short term to tenants and vacationers. Without the proper insurance, license, and required inspections, renters may be subjected to fines and huge repair expenses. Richard Blair, Founder of Wealth Solutions Inc., also known as WSI offers advice to renters using online sites, such as VRBO or Airbnd on WSI Blog (March 16th, 2016). Mr. Blair is an Estate & Trust Specialist and a Registered Investment Advisor in Austin, Texas with nearly 23 years of experience in the financial planning industry. He cautions renters to carefully consider the legal and financial ramifications of relying solely on rental online websites for protection.
Most online websites offer limited or no protection when renters use the site to rent short term rental properties. It’s important that renters know some of the ramifications concerning insurance when renting to tenants. Homeowners who are renting a room must ensure that their insurance policy covers paid tenants. Normally, homeowner’s insurance doesn’t cover tenants who rent rooms or adjacent apartments. Richard Blair suggests that renters seek advice with their insurance carrier before renting properties to ensure quests are covered under the policy.
The city may require renters to obtain commercial licenses, impose special taxes, and inspection certification. Blair advises renters to obtain commercial property insurance to cover liabilities for damages to rental properties and to protect the tenants. Sites, such as Airbnb doesn’t provide users with enough protection for the renters nor tenants.
Richard Blair founded Wealth Solutions Inc. in 1994 to provide financial and estate planning services to net worth individuals, small business entrepreneurs, and affluent families. WSI is located in Texas and serves the New Braunfels, Georgetown, Marble Falls, Bastrop, Houston, and Austin areas. Mr. Blair is certified as an Estate & Trust Specialist and offers advice pertaining to insurance, rental properties, and estate financial planning.