Are you thinking about getting into the travel accommodation industry as an investor and landlord? If so, you might want to focus your efforts on the niche area of corporate housing, according to business guru Brian Ferdinand in a recently published article. For one, this type of accommodation is drawing increased interest among today’s travelers. Second, corporate housing units offer major liability benefits when compared with other types of accommodations, such as Airbnb.
WHAT YOU SHOULD KNOW ABOUT AIRBNB AND LIABILITY
Airbnb is currently entering unchartered territory, and this has raised a number of insurance-related questions. For instance, if an issue with Airbnb crops up, who will be liable for this issue? This is an essential question because sometimes insurance companies have exceptions to coverage for properties used for home sharing, meaning that they likely won’t cover such an issue.
The reality is, Airbnb does provide an insurance product. However, many questions exist regarding what this product truly protects. At the moment, no high-profile cases involving Airbnb and liability have cropped up yet. In light of this, the risk remains low. However, today’s personal injury lawyers would have no problem with trying these cases.
WHAT YOU SHOULD KNOW ABOUT CORPORATE HOUSING AND LIABILITY
The corporate housing business model is an established one, which is a major advantage when it comes to the area of liability, according to Brian Ferdinand. That’s because this travel accommodation model comes with clear coverage from insurance companies.
Issues that increase liability can certainly happen in the corporate housing setting. However, corporate housing firms can choose to carry insurance to cover themselves when faced with these types of issues. Both personal insurance policies and corporate policies can cover corporate housing stays.
In addition, you can actually reduce liability as a corporate housing firm owner by establishing a strong point of contact in the area of customer service for your tenants. This person is essential because both corporate housing tenants and corporate housing owners want to be able to reach somebody who can listen and begin resolutions to tenant issues.
Overall, keep in mind that liability issues do not dissipate the longer they go unaddressed, according to Ferdinand. Small issues or problems have a tendency to grow with time. Therefore, if you ever make a mistake as a corporate housing firm owner, be sure to acknowledge, address, and resolve it. This will take you much further than simply ignoring, avoiding, denying, and making excuses for it long term.