Cities across the US are establishing regulations for Short Term Rentals, and Bowling Green is one of many. Influenced by negative views on the impact of Short Term Rentals, the City hopes to determine procedures before the market gets out of hand. Opinions on Short Term Rentals include such as these: “Possibly the negative externality that affects the most people is that tourists’ “authentic” travel is coming at the cost of neighborhood character and quality of life of the residents.” Residents don’t want to find their neighborhood turned upside-down from heavy traffic or party houses and nuisance guests.
Successful city policies seem to be those providing moderate regulations and permits. Cities such as Virginia Beach and Prince George, MD have implemented regulations requiring proof of $1,000,000 liability insurance and certain safety features.
Bowling Green is no different as the City discusses the necessary steps to regulate Short Term Rentals and protect their communities. By addressing safety concerns on the front end, they are hoping to avoid accidents at these properties. “About two years ago, we only had about 50 Airbnbs in Bowling Green,” said Ben Peterson, executive director of the City-County Planning Commission of Warren County. “Now we’re close to 200.” Also, as of 2017, Bowling Green was the third most populous city in Kentucky.
Amidst the growing population and innovative markets, the City is doing their best to protect their owners and communities.
Steps to Ensure Proper Coverage
After regulations there are several important details hosts should consider when entering the Short Term Rental market. What platform, such as Vrbo or Airbnb, will they list their property on, or will they list it through a Property Management company? What updates need to be completed to ensure safety for their guests?
Largely hosts should consider how their property is insured. Homeowner policies traditionally exclude business activity and may not fully underwrite for the specific risks of Short Term Renting. Proper recommends you ask your current carrier to review your listing and get the following answer back in writing from their underwriters.
If I regularly entrust my property/vacation home to a paying vacation rental guest for a period of less than 30 days, and that guest damages, steals, or is injured at my property; do I have property and liability coverage?
It has never been more important to ensure the proper coverage is in place for a Short Term Rental. Taking these steps will better prepare hosts for operating and their business and protecting their investment.
Call Proper Insurance today to receive a quote for your Short Term Rental property – (888) 631-6680!