Photo by Arek Socha via Pixabay
In a bid to afford homes in high-value areas, many homeowners turn to income from short-term rentals to cover a high mortgage payment. You can benefit from this option with some caveats:
- Location really matters. A lot. You might advertise your home as near the coast when it’s really 20 miles inland and get a few bites. But eventually, the reviews catch up with you, and you lose out. Be honest about where your rental sits. Market what is available: access to public transportation, quiet parks, sports arenas, theme parks, etc. only if they truly are accessible.
- Consider hosting rather than leaving your home to strangers. That means you stay on the property while they are there. You’re in control of who comes and goes. Your renters can’t sneak in a dozen of their buddies without paying for them.
- Make sure your HOA and municipality allow it. Many homeowners associations explicitly forbid subletting or short-term rentals, so if that’s your plan, read those pesky covenants, conditions and restrictions (CCR’s) before you buy. Municipalities also have codes regarding hospitality properties. Many require licenses, permits or fees, and some require occupancy taxes on the nights guests rent your home.
- Your homeowners’ insurance coverage may not protect you from damage or liability when you’re using your home as a business. Talk to your insurance agent before you post your home online and pay the extra premiums to make certain you’re covered.
Before you decide to turn your home into a short-term rental, know the rules and the risks or the rewards may not be worth the trouble. Your real estate professional is your best resource for discovering properties in your area suitable for a short-term rental, so make that phone call today.
About the Author
Marsha Charles
Consistent top listing and selling agent receiving Chairman's Club award for superior sales achievement almost every year while associated with Preferred Properties, Inc. Consistently receive the International Presidents Premier award for sales volume since joining Coldwell Banker Realty and ranked in the top 1% of agents in Connecticut and Westchester County. In 2021 I received the International Society of Excellence award for sales volume in excess of $100,000,000. I have been named a Top Five Sales Agent for customer satisfaction since 2010 (longer than any other agent in Connecticut) and listed in Connecticut Magazine. Named one of the Top Agents in Connecticut by Real Trends since 2018.
I work with sellers and buyers and also have a strong understanding to needs of those who are relocating . Background and experience in advertising, public relations and photography offer creative and innovative marketing plans for sellers.
Realtor designations include: Graduate Real Estate Institute, Certified Residential Specialist, Certified Residential Marketing Specialist, and Pricing Strategy Advisor. Served as President of New Canaan Board of Realtors (two terms), Director (three terms) and currently serve on Professional Standards Committee. Named Realtor of the year by the New Canaan Board of Realtors in 1994and again in 2022.
Married and mother of other of four children who attended and graduated from the New Canaan School System, Member of New Canaan, Darien, Greenwich and Statewide MLS systems. Areas covered include New Canaan, Darien, Greenwich, Rowayton, Norwalk, Wilton and all of lower Fairfield County.
