Renting out your second home

August 7th, 2014 by admin

Renting out your vacation house or second home can help you save money, and is practical, especially if you're not making use of it. This decision brings monetary benefits, but there are also associated expenses. According to a recent article in The Street, deciding whether it's a worthwhile move depends on if you stand to benefit financially from renting despite overhead costs and other expenses. 

One of the first expenses is renter turnover. While people sometimes assume one failed situation can be easily amended by finding another renter, there are attendant costs. In addition to sometimes losing a month or more of rent, there are necessary cleaning costs between renters, and cleaning services for even small apartments usually run around $300, reports Michael Corbett of Trulia

Another cost is renter or "landlord" insurance. This policy offers additional coverage that protects you in the event of fire or other damages. Your claim is more likely to be covered if you have obtained landlord insurance.

In addition to landlord insurance, it is a smart investment to find a handyman who can provide important maintenance when the dish washer, washing machine or other appliance needs fixing. To ensure that you get the best quality, use a verified maintenance service. 

Finally, there are costs associated with general wear and tear. In particular, short-term rentals lead to higher wear and tear costs. Often, this is because when you're renting a house, unlike looking after a home you expect and hope to own for years, you're less likely to maintain it in the best possible shape. 

Refer to this list to learn more about renting your home. As always, contact Fundy Mutual and follow our blog for answers to your auto, home and commercial insurance questions. One of our experienced home insurance brokers will be happy to help you.