As I had explained in my previous post for tip 6 for 9 Must-Have Tips for Running your Vacation Rental like a Business –
A vacation rental is both a fun place to stay and an investment opportunity. And a part of that responsibility is ensuring that you run your business smoothly. When you own a vacation rental, you want to have good cash flow, avoid tax penalties, stay organized, have a great presentation, minimize risk and ensure your customers are satisfied.
I want to continue to try and provide you with all the info you may need to help guide you through the jungle of beach vacation property rental pitfalls.
Buy and maintain insurance
Insurance is another must have for your vacation rental. Insurance protects you, your property and your guests in the event of an accident. If you are not properly insured, you can be held personally liable for any claims made against the property (even if you have an LLC). I use a $1 million liability rider on my VR insurance policy. You should know that most insurance companies will not allow you to apply this to your personal umbrella policy. You will most likely have to pay it as an extension to the specific property for a few hundred dollars a year. Since I use Evolve, they offer an additional $1 million liability coverage with all their bookings which was a great ancillary benefit to using them.