In 2021, millions of people (1 in every 8) stayed in short-term rentals.
These short-term rentals have changed how people vacation and have opened up a lot of opportunities for investors. Many platforms make owning a short-term rental property convenient.
While the potential for high returns is enticing, it's essential to acknowledge that short-term rentals come with risks.
In this article, we'll explain some effective strategies to help you mitigate these risks while capitalizing on the profitability of rental property in Columbia, South Carolina.
Purchase Comprehensive Insurance Coverage
Before any guest steps foot on your property, you should have full insurance coverage. Traditional homeowner insurance may not provide adequate protection if you're renting out your property.
You'll want to consider specialized vacation rental insurance. This type of insurance typically covers damage caused by guests, liability issues, and even loss of income due to unforeseen circumstances.
Having comprehensive coverage may be pricey, but it'll give you peace of mind.
Thorough Tenant Screening
Another way to reduce risk is to screen your tenants. This may be slightly more difficult when you have a short-term rental.
However, you can check online rental platforms for guest reviews. If your renters have booked in advance, you may even have time to run a background check.
Communicating with your guests will also be helpful. You'll have the chance to express your expectations and address any questions they may have.
Hire a Team
It is possible to manage your rental property in Columbia on your own, but it is difficult. If you don't have any experience, there's a greater risk of mistakes.
Hiring a team will not only take a lot of stress off of you but there will be less risk as well. They'll have the knowledge and experience to anticipate issues and fix them before they become a bigger problem.
A team will educate you, the property owner, on the specific rules regarding short-term rentals. This will reduce your risk of breaking building codes and regulations. If you don't understand these regulations, be sure to ask your property manager so you can avoid costly fines or legal issues.
Regular Maintenance and Inspections
To reduce the risk of someone getting hurt on your South Carolina property, you should have regular maintenance and inspections. Address issues promptly to prevent them from escalating and negatively impacting guest experiences.
While you may not want to have a high maintenance expense every month, a well-maintained property is more likely to receive positive reviews and repeat bookings.
Not only does regular maintenance keep your guests safe, but it also can prevent damage to your property.
Safeguarding Your Short-Term Rental
While there are risks when owning a short-term rental, there are ways to manage and reduce them. By following the tips above, you'll be taking a proactive approach to running a profitable and sustainable short-term rental business.
We have a staff full of experts that can help keep your property damage to a minimum and risk your overall risk. Send PMI Soda City your questions here or give us a call today.
