Scott's Weekly Column

Holiday home insurance?

It is interesting to see the impact that companies such as Airbnb are having on the holiday letting market. Booking agencies such as this have given many home owners the ability to self-mange and let out part, or all, of their family home or investment property to holiday makers or short term/seasonal renters.   Whilst there are plenty of positives for home owners who take up this opportunity there are many pitfalls to watch out for.

Firstly, if the property is not correctly zoned for holiday letting and you have not lodged a DA for holiday letting approval then the council may shut you down if it receives complaints from neighbours about noisy holiday makers.

Secondly make sure your insurances are in order. Many of the mainstream building insurance policies preclude holiday letting, therefore if there is an accident or worse, malicious damage, from holiday tenants then you may not be covered. Talk to your broker or go on-line and look for companies that will cover holiday letting. The premiums for holiday letting will be higher, but it will give you the security and peace of mind to know that you have proper coverage. 

Finally, whilst the extra income is great make sure you declare it on your tax return. The ATO looks at all holiday letting websites and matches properties, owners and tax returns. It’s better to be up front than have the taxman knocking on your door!! 

Holiday letting your own home is not for everyone but if you do decide to try it make sure you are properly prepared.

 

Have a great long weekend!!