We have heard of people being able to rent their home for anywhere from $500.00 per week to $15,000 per week depending on the size and amenities. And it’s not just for Super Bowl 2015. The NFL Pro Bowl, Waste Management Phoenix Open, and the Barrett-Jackson Auction are all happening here in town. But before you jump on the bandwagon and rent your home, here are some things to keep in mind.
1. Check to make sure that short-term rentals, also known as transient lodging, is allowed in your county and city zoning ordinances. And, if you live in a homeowner’s association, make sure to check that the Covenants, Conditions, and Restrictions (CC&Rs) allow short-term rentals. The CC&Rs are the basic rules of the community and are designed to protect, preserve, and enhance the community. However, sometimes these rules can be restrictive.
2. Make sure you use the best rental agreement for the length of time you plan to rent the property. Some rental agreements will provide tenants with more rights and protections than others. Depending on whether the rental agreement is for under 30 days or over 30 days may determine whether it will be governed by the Arizona Residential Landlord and Tenant Act (ARLTA), or by Arizona’s Innkeeper’s statutes, which tend to be less restrictive.
3. Other issues to think about are how much you plan to charge for a security deposit, the safety of personal items in the home, what condition of cleanliness you expect the home to be left, and your homeowner’s insurance. Check around for what other home owners are charging for the security deposit as you want to make sure you’re competitive. Lock up or remove any items from the home that you do not want broken or lost. Many home owners like to keep one closet locked with those items. Make sure your rental agreement addresses how you want the home left. Some home owners charge a refundable or non-refundable cleaning deposit. And last, make sure you check with your homeowner’s insurance company to see if they require an additional premium. Some do, and some don’t.
Renting your home out as a short-term rental can be very lucrative. Just remember the tips we’ve given above. You may even want to contact a local real estate attorney to get some answers to the questions we’ve raised here, and for assistance in drafting a rental agreement that will protect your interests.
**DISCLAIMER: None of the statements on this website should be considered legal advice. If you are interested in receiving legal advice and/or representation, please contact an attorney.**