- Renting out an entire home for, typically, less than 30 days
- Renting out a subparts of a home for, typically, less than 30 days
- Renting out all or part of an apartment or condo for, typically, less than 30 days
- Renting out a part of a room or even a single item, such as a couch (for sleeping) for, typically, a week or less
The rise of a dominant player represents both the newer concept and some related, significant problems. Air Bed and Breakfast (AirBNB) is a rapidly growing company that arranges for total or partial rentals of residences to travelers. Essentially, for a fee, AirBNB allows use of its website to post information on residential space availability and rental costs. The site charges a percentage of each transaction amount to both the host and guest that conclude a transaction.
The problem is that providing residential space to others for income turns the events into business transactions. Such transactions may cause issues under several areas:
- The jurisdiction’s laws
- Residential Insurance Policy
- Property Owner Association (including Condo or Apartment) Rules
Property Associations create rules that are intended to address fairness and safety among its members as well as to preserve unit value. Temporary rentals may be considered a breach of rules that could result in financial penalties and/or eviction.
What about insurance? Rentals can result in accidental loss to property as well as injuries to others. Eligibility for protection against property loss or claims or lawsuits involving injuries to others may be voided if the incidents involved business activity.
If you are considering renting out your living space, take the time to make sure that you’re not creating either legal or insurance problems.