Real Estate Investor Magazine South Africa May 2016 | Page 33

opportunity to steal your possessions or your identity.
Things get trickier if you’re renting out part of your
home while continuing to live there. You can keep a
closer eye on your assets (though you’d still be wise to
safeguard it), but you’re physically vulnerable if your
guest turns out to be dangerous. It’s not realistic to
run criminal background checks on guests before they
book or before they check in; you can do some basic
Internet sleuthing, but it’s not a failsafe process.
Reviews from previous hosts can offer reassurance,
and you can always decline a reservation or even
cancel a booking, though in some cases Airbnb will
impose penalties. You can also limit the reservations
you accept to guests who have completed Airbnb’s
Verified ID process. Both hosts and guests can have
Airbnb verify their identity by uploading a valid
government-issued ID and connecting a Facebook,
Google+ or LinkedIn account to an Airbnb account.

Insurance

Airbnb’s host guarantee provides up to $1 million
in insurance coverage for property damage in 29
countries, including the United States, United
Kingdom and Canada. Airbnb’s insurance is not a
substitute for homeowner’s or renter’s insurance, and it
doesn’t protect against theft or personal liability. Talk
to your homeowner’s or renter’s insurance company to
make sure your policy will cover your property, your
possessions and your liability while renting out your
place through Airbnb. If you need extra coverage, an
umbrella policy might be the ticket.

Payment Guarantees

Reviews from previous
hosts can offer reassurance,
and you can always decline
a reservation or even
cancel a booking, though
in some cases Airbnb will
impose penalties
high sentimental or financial value. Your wedding
dress, Grandpa’s gold watch, photo albums, your
emergency cash and your tax returns are all examples
of things you’ll want to secure. Don’t give guests the
www.reimag.co.za

Guests actually pay you through Airbnb. As long
as there are no problems, Airbnb will release your
payment within 24 hours of your guest’s arrival, and
you’ll receive it within as soon as a few hours, if you
choose to get paid via PayPal or via Payoneer prepaid
debit card, within a few days for a bank transfer, or
within 15 business days for a mailed cheque.
Guests must notify Airbnb within 24 hours of
check-in if there’s a problem that warrants a refund.
If you don’t respond to guests who try to contact you
about a problem, they might be allowed to complete
their reservation and receive a partial refund.

The Bottom Line

The growing sharing economy offers ways to make
extra income that weren’t available even a few years
ago. Many of these opportunities require you to be
comfortable navigating unclear local laws, sharing
your most valuable possessions with strangers and
taking on additional legal liability. Airbnb is no
exception, but if you’re willing to take on the risks,
you could make thousands of extra dollars a year.
MAY 2016 SA Real Estate Investor

31