It is simple to make extra cash by renting out your house on services like Airbnb or VRBO for short periods of time. Peer-to-peer home sharing is risky; thus, it should not be done without careful consideration and inquiry. Not only may the guests destroy your house, condo, or apartment, but you could also face unexpected and expensive fines if one sustains an injury or damages property next door while staying there.

You should be conscious of five liabilities before renting out your house, along with tips on preventing or being ready for them. If you have any serious issues regarding injuries sustained by your guests, you should hire a personal injury attorney Newburyport MA.

Airbnb and premises liability: Legal considerations for hosts and guests

One of the biggest risks is that tourists will sue you if they get hurt or sick or have their valuables destroyed at your house. You can make your home as safe as possible, but nothing can be guaranteed. Even if a lawsuit is without ability, it can be costly and time-consuming to defend.

Making sure you have enough coverage is the best way to protect yourself. Also, $1 million in liability insurance is provided by Airbnb. Even while Airbnb claims that the protection covers you, having your own insurance is undoubtedly a better option.

For example, the Airbnb conditions of service statement include a number of disclaimers and other details that put most of the renting procedure under your control and not Airbnb’s.

What happens when a neighbor’s property is damaged

You might also be held responsible if a guest damages a neighbor’s property. Knowing if your house is part of a complex with many units is especially important. Your neighbors may suffer severe property damage or be seriously injured if a visitor starts a fire or creates a flood.

The $1 million limit on Airbnb’s liability insurance may not be adequate in certain cases. Again, the best course of action is to purchase your own insurance with sufficient coverage. 

Use the site’s resources to research prospective tenants before renting your house via a peer-to-peer service. For instance, Airbnb allows hosts to submit feedback from clients, which you should examine before renting. 

Last but not least, demand a security deposit from visitors—the higher, the better. The security deposit will be set by Airbnb at 60% of the nightly cost, up to $1,000. The hosts can choose the deposit prices.