Short Term Rentals, be prepared

Here in Central Oregon, the idea of Short Term Rentals is usually in the conversation, when we talk about real estate and moving into the area. There is no question, renting a place for “seasonal use” has soared and is quite lucrative. Having that cash flow and earning equity can certainly be more than an enticement. Before you make the “jump” into this business, consider the following.

Property Damage - Yours and others. 

Depending on the type of property you are renting, damage and liability could be on a small or larger scale. A guest could back into your fence with their car, knocking it over? This would be far less costly, than if your rental was a condo on the 2nd or 3rd floor, and a guest left the water running which flooded your unit, and the units below. 

Injuries while staying at your place

There is always the opportunity for a guest to become injured when visiting your home. However, that risk is greatly increased when the volume and frequency of guests increase. Airbnb and VRBO each offer $1 million in liability protection, yet with specific conditions. If you elect to list with either group, it would be most beneficial to know those details. 

Aggressive Strangers? 

Inviting strangers to stay at your place is always a risk, with uncertainties for sure. Guests could cause injury to you or others, whether intentional or accidental. Interview with qualifying questions, best you can. Research prospects on social media, past rental references with Airbnb or VRBO. Also, be mindful of guests becoming squatters.

Breaking the Rules

Are you in an HOA? Do they allow Short Term Rentals? What about City Ordinance or Laws? 

Violation in any of these situations could carry stiff fines, citations or worse, alienation by those who live around you. Here in Sisters, Oregon the City of Sisters has specific guidelines. 

There’s a Tax for that

If you rent any portion of your property for 14 days or more, you must report that income to the IRS. Talk to your tax professional to confirm what operating a Short Term Rental will mean to you so far as tax payments go.