With everyone trying to make extra cash, Airbnb has announced free-to-bottom protection for every host against risks caused by guests’ bad behavior. This is set to ensure that informal accommodation hosts do not suffer losses and financial setbacks associated with short-term rental arrangements.
These may include damage to furniture caused by pets or injuries to people renting the property as a result of faulty appliances and in response to these challenges faced by property owners, Airbnb announced the free top-to-bottom protection.
The City of Cape Town acknowledged that data from the Cape Town International Airport indicates an increase in tourists coming to the country, processing about 25 000 passengers a day. Tarina Vlok, the Managing Director at Elite Risk Acceptance, a high-net-worth insurer and subsidiary of Old Mutual Insure says it is not unusual to hear of losses and personal finance setbacks that occur as a result of short-term rental arrangements.
“Many of these third-party platforms, who may be internationally owned and run, claim to offer protection or cover against pets damaging your holiday property or even if a guest breaks something,” said Vlok. However, she warned that it is important to check if you have coverage that protects you from liability of accidents and injuries that occur on the property.
“Oftentimes specialist insurers will offer comprehensive insurance to policyholders, but you do need to indicate to your insurer what the property will be used for.”
The Airbnb by-law was brought in to amend the City of Cape Town’s municipal planning by-laws and accommodate the new business prototype Airbnb provides, ensuring that the City of Cape Town and Airbnb provide a conducive relationship that will make the process easy for the hosts.
This amendment will make it easy for people who rent out their properties through Airbnb making sure that they observe the relevant local laws to avoid penalties. For those who want to pursue a business in the Airbnb space, this means that the will be an Airbnb model they can follow to successfully launch their business.
With many South African looking at expanding their streams of income due to soaring prices of basic needs and more, the Airbnb model will provide property owners with a positive business opportunity by generating an income by renting out their property while also creating much-needed job opportunities within the hospitality industry.
Also read:
Revel in barefoot luxury just off the Bainskloof pass, The Mount Bain Cabin
Picture: Unsplash