A recent trend in the real estate market is the popularity of home-sharing services. Various websites link homeowners to people that would want to rent their homes. Home sharing is a preferable choice for people travelling on a budget or those that would want to integrate with the local community.
If you would want to list your home in a home-sharing service, you must conduct some due diligence to ensure you are not exposed to future liabilities. Below are some considerations to make;
Strata Title, Lease or Tenant Agreement
The owners' corporation bylaws may prohibit you from conducting commercial activities on the property. You can bypass this requirement by lobbying other property owners to change this law during the annual general meeting.
If you have rented or leased the property, check the lease or tenancy agreement to know if the landlord prohibits you from subletting the property. If there is no such clause, then you are free to rent out the property. If it exists, contact the landlord and inform him of your intentions. Most landlords will remove the subletting clause provided you give them a share of your income.
Check if your home insurance covers business activities on the property. If it does not, you will not receive compensation for damages caused by the clients. For instance, they could start a fire in your home. Preferably, inform the insurance company of your intent to rent out the property. In addition, choose a service that has host protection insurance.
You will also need to check the conditions of your mortgage contract. Some banks may prohibit you from leasing out the property while others may restrict such activities during the first year of occupancy. Most companies will ask you to take extra insurance to ensure the property is covered in case of accidents.
A conveyancer can help you avoid liabilities resulting from renting out your home. He or she will inspect your home and identify hazards that guests may be exposed to. Further, he or she will evaluate the terms and conditions of the home rental service. Using this information, he or she will prepare an agreement for your guests to sign. The contract will prohibit them from accessing certain areas or conducting dangerous activities on the property. Further, it will indemnify you from damages caused by a guest's negligence.
Sharing your home with a guest is a sure way to make some extra income. Check the terms of your strata title, lease agreement, home insurance and mortgage to identify if they restrict you from renting out the property.
To learn more about conveyancing and sharing your property, contact conveyancers in your area.