Renting your cabin when you’re not using it can help cover maintenance costs and property expenses. But it also introduces new responsibilities and risks.
Here’s a quick overview of what to consider before becoming a cabin host.
Insurance Is the First Step
Standard homeowners insurance typically doesn’t cover short-term rentals. You’ll need a policy that specifically covers rental activity.
What to ask your insurer:
- Does your policy cover short-term rentals?
- What liability coverage is included?
- Is there coverage for guest injuries?
- Does the policy cover theft or damage by guests?
Some insurers offer endorsements that add rental coverage to your existing policy. Others require a separate commercial policy. The cost varies but expect a 20–50% premium increase.
Preparing Your Cabin
Guests will not treat your cabin the way you do. Prepare accordingly.
Remove or lock away:
- Personal items and valuables
- Sentimental decorations
- Expensive tools or equipment
- Any items that would be difficult to replace
Provide clear instructions for:
- Heating and cooling systems
- Fireplace or wood stove operation
- Trash and recycling procedures
- Wi-Fi access
- Emergency contacts
Maintenance Between Guests
A cleaning and inspection between each booking is essential. Budget for:
- Professional cleaning ($100–$200 per visit)
- Laundering of all linens
- Restocking of supplies (toilet paper, paper towels, soap)
- Quick inspection for damage or maintenance issues
The Tax Question
Rental income is taxable. Most owners find that expenses (cleaning, repairs, utilities, insurance, property management fees) offset a significant portion of the income.
Keep detailed records of all income and expenses. Consider consulting a tax professional familiar with short-term rental regulations in your area.
Starting Slowly
Consider renting only during specific periods initially. This lets you learn the process without committing to year-round availability.