Things all residential landlords should be aware of.

Do you have a residential investment property?

Insurance compliance is getting stricter, and answering disclosure questions to the satisfaction of insurers is becoming increasingly difficult.

A seemingly simple question “Is it a longterm rental or an Airbnb?” used to be easy. But now we have Rental Arbitrage.

Rental Arbitrage is where you lease your property to a holiday rental operator under a normal longterm lease at market rent, and THEY operate the property as an Airbnb. It’s a legitimate setup, it has an industry name, but the insurers are slow to adopt the terminology.

Instead of adding one clear disclosure question for “Rental Arbitrage” with a short explanation, insurers expect you to navigate the concept using a network of older questions like:
Do you have a longterm lease in place, or is the property a holiday rental?
Is there any subletting at the property?
Do you have tenancy applications for all adult occupants?

The real headache?
Different insurers expect different answers to these questions.
And the wrong answer, even an innocent one, could mean a full claim denial.

It’s a minefield. Don’t DIY your landlords insurance. Contact us today and get the right advice.