Spend a Little, Make (or Lose!) A Lot: How Inadequate Coverage Can Affect Your Rental

Here in Florida, people are jumping on the vacation rental trend quickly, and we can understand why!  After all, who wouldn’t want to make some extra income by using a spare room, over-garage space, or even their entire home (if they have more than one residence) to make money off of the influx of vacationers that visit our area for Disney, our beautiful beaches, our shopping, and more. However, simply listing your spare bedroom on a rental site isn’t going to make the money for you without any prior preparation.  If you want to make maximum profit from your rental space, whether one room or an entire house, there are some key areas you can target with upgrades.

First, you need to focus on your bathroom space.  Few things will make a space feel luxurious like a renovated bathroom.  By re-doing a bathroom to accommodate renters and/or vacationers, you can up the value of your rental space by a significant amount.  Aim for plenty of natural light and clean, crisp colors to make the space feel contemporary and fresh.  Have matching linens (towels, washcloths, floor mats, etc.) to make things feel posh, and consider additional options like upscale toiletry items left out for guests, or bathrobes that can be used and then laundered with the other bathroom linens.  Small touches can have a huge impact! In the circumstance that the bathroom will be shared by residents in the home and renters (as you would have when renting out a single bedroom in your home), the same rules apply, but you can leave the linens and toiletry items in a nice basket or container in the bedroom space for your renters to find when they arrive.

You also need to keep guests in mind when it comes to the sleeping space.  Have plenty of storage for them, and again use clean colors that will open up the space and make things feel bright.  Use natural light when you can, but have plenty of additional light sources like overhead lights (and fans!) and attractive lamps placed strategically.  If possible have both a sleeping and sitting area in the bedroom, especially if you are only renting out that single, small zone.  This will let your guest have some privacy for using their computer, reading, talking on the phone, etc. without sitting in bed the entire time.  Additionally, consider having a paper left out for your renter on the bed with important information (like key channels on the television, the WI-Fi password, etc.) so they don’t feel awkward having to hunt down this info at an inopportune time.

If you are renovating a large area (like an over-garage apartment for example) to rent out for vacationers, you will also need to keep them in mind for kitchen and dining areas, and even for outdoor patios and porches.  If you are on vacation, you want everything to feel like a luxury, not a chore, so kitchens should have as many convenience options as you can afford.  At the very least, opt for good-quality appliances (including a dishwasher!) and try to stock your cabinets with the basics in cooking equipment (like a good set of pots and pans, several place settings for dining, etc.).  This will go a long way in getting good reviews from renters and will help you make more money!  For your outdoor areas, think about the overall experience of being in and around your home.  If you have a good view, maximize it with a sitting area and perhaps a fire pit.  Have a pool? Add some tropical plants in corners or around the perimeter to offer some shade/privacy, have plenty of outdoor seating nearby, and have pool towels ready to go in an attractive storage solution.  These touches are a huge hit with guests!

If you are considering using your property as a vacation rental and are ready to make some upgrades, your first step shouldn’t be hiring your contractor.  Before anything else, you need to research how any prospective changes will affect your current homeowners policy, and whether or not you are ready to take on those effects in regards to your deductible, monthly premiums, and so forth.  Not sure how to plan for coverage of your home and property as both your residence and your rental?  We can help!  Carroll Marshall Insurance can help you map out the current points of your existing policy, and we can help you navigate the changes coming up if you renovate your home to accommodate vacationers.  Give us a call for an appointment or stop by our Winter Haven office!