Know the risks before you share a home, ride or more
The sharing economy is rapidly gaining popularity. PriceWaterhouseCoopers expects it to hit $335 billion in global revenue by 2025. Before you jump in on peer-to-peer transactions, understand how it works and how to avoid financial pitfalls.
Home-sharing or peer-to-peer rentals are sites where people rent out rooms or entire homes to guests for extra income. Guests find a property online and pay for the stay like a hotel. The difference is that the property is often a privately owned apartment, condo or house. Anyone can register as a host or guest.
Get facts to improve your home-sharing smarts:
- Regularly renting out rooms for a profit may make you a home-based business. As some homeowners policies won’t cover property damage caused by or injuries to a paying guest, talk to the home-sharing service and your own agent to determine if additional liability coverage or special landlord insurance is needed.
- If you plan to stay in accommodations secured through a service such as Airbnb or VRBO, confirm your own homeowners, renters or personal liability insurance policies offer protection for potential damages to the rental property. If not, make adjustments as needed.
- Home-sharing user agreements change often. Read the fine print every time.