If you’re an aspiring homeowner with wanderlust, you may fear to commit to a bond because you plan to see what the rest of the world has to offer. However, having a home loan doesn’t necessarily mean that you must live in the home year-round. Below are several options that are available if you’d like to have your bond and travel too...
Make Extra Moola
Short-term letting and Airbnb rentals present useful solutions to the nomadic homeowner. In both scenarios, however, you will need to make use of the services of a reliable property manager who can collect payment on your behalf and be available to address any maintenance issues the temporary tenant might come across while you’re out of the country.
Insurance is Important
Usually, a standard homeowner’s and household goods’ insurance policy would cover you against unforeseen events such as damage to the physical property and the furniture therein. However, managing these risks becomes slightly more complicated when you’re both the primary resident and the temporary landlord. Certain homeowner’s insurance policies might provide cover if you rent out your home occasionally, while others will require you to take out a separate landlord’s insurance policy. Similarly, some policies will cover furniture damage while the property is occupied by tenants, and others will not. You will have to do thorough research on insurance policies to ensure that they are covered against these kinds of damages.
Committed Tenants
The other risk you may face while travelling is the challenge of securing tenants for the period that you are away. Selecting the correct tenant is an important part of the process if you’re planning on travelling. It is best to search for a property that has year-round appeal to the short-term rental markets. Suburbs near tourist hot spots will attract holiday renters, which is often a seasonal market. If you plan to be out of the country over the peak tourist seasons, then these kinds of homes might be ideal. Suburbs near business districts, on the other hand, will attract those travelling for work, which is a more stable, year-round market.
Final Advice
While there are risks involved in leaving your home in the hands of a temporary tenant, hiring a reliable property manager to look after your home while you are out of the country will help to limit these risks. A property professional with the specified experience will be able to guide you into making sure you avoid the major stumbling blocks involved in these kinds of arrangements.
