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.