If you want to build up wealth, you need to find ways to earn passive income. Being a landlord is a tried and tested way to achieve this, but not everyone can afford the required real estate. Luckily, there are some more viable ways to earn some supplemental funds. If you're someone who travels a lot for work or takes long vacations, you should consider renting your home out as a vacation home.
While you may have heard some horror stories about property damage or wild parties getting out of hand, you can avoid most of these problems through diligent screening. Read on to find out how screening guests for vacation rentals works.
Use Trusted Platforms
Sites like Airbnb are essential if you want to do effective vacation property screening. These platforms are useful because they allow for rental guest verification. As a host, you can evaluate potential guests by looking at reviews from previous vacation rental hosts. If a potential guest has a long history on a trusted platform, it suggests they'll take good care of your home.
Another great thing about these platforms is that they allow people to verify their identity using a government issued ID. When guest accounts are linked to their official identity, they're much more likely to behave.
Look for Red Flags
When communicating with potential guests, you should look out for red flags. If someone signs up for a stay with an incomplete profile, you should be suspicious. After all, guests will be staying in your home, the least they can do is be transparent about who they are.
You should also proceed with caution if you find negative reviews. A single negative review could suggest an unreasonable host, but multiple bad reviews suggest a pattern of bad behavior.
A Security Deposit is Non-Negotiable
One of the biggest mistakes you can make is not requiring a security deposit. Not only does a deposit cover any damages, it also encourages guests to treat your property with respect. You'll need to draft a valid rental agreement and have every guest sign it. This ensures you're protected if there's a dispute about damages.
Consider using digital signatures instead of a physical one. This lets you get documents ready in advance and makes oversights less likely. If you forget to have guests sign an agreement, and they cause damage, you could end up being stuck with the bill.
Screening Guests for Vacation Rentals is Hard Work
As you can see from these guest screening tips, the process is hard work, and you can't afford to make mistakes. If guests cause damage without a solid rental agreement, your vacation home could end up operating at a loss. But, help is at hand, PMI Santa Fe can take over the rental management duties on your behalf.
We have decades of experience helping property owners with all types of real estate administration. With our help, you can relax and earn your passive income, we'll take care of the screening process for rentals. Contact us to learn more.
