It’s your home – of course you can rent it to vacationer and whoever you want? Maybe, but maybe not. Renting out a vacation home for short-term stays can offset the costs of the investment, making it an attractive option for some owners. However, some communities restrict short-term rentals.
Rules for home rentals vary from location to location. Be sure to know the EXACT details of rentals in the location you are considering.
Each Homeowner’s Association (HOA) can impose rental guidelines and rules for the benefit of those people using the property. ‘Party Wall’ agreements must also be checked to see if there is language about rentals (or the restriction of them).
As an example, several condominium complexes in Vail do not allow you to rent your condominium yourself – you are forced to use their on-site services. Their commission splits can vary, so know before you buy. No one likes surprises in these cases.
We can help.
Should you decide to rent, certain things become more important than if you were using the home yourself. When renting your home:
- Screen potential tenants using a written rental application
- Document the important facts of the agreement with a written lease
- Establish a fair system of setting, collecting, holding, and returning security deposits
- Stay on top of maintenance and make repairs when requested
- Provide secure premises
- Provide adequate notice before entering the rental space
- Disclose environmental hazards
- Purchase liability and other property insurance
- Try to resolve disputes with your tenants without lawyers and lawsuits
- Have a property management firm screen your tenants
- Require that your tenants have renters insurance
- Make sure your property is protected for vandalism due to the tenant not taking care of the rental
- Make sure you have insurance that covers you for fair rental loss
- Make sure you have adequate limits of liability