Think nothing can go wrong when you rent out your property? Think again — there’s a reason why Airbnb insures hosts up to $1 million in damages.
The truth is that anytime you rent your vacation rental property to a guest, you open your property to risks that could impact your guests’ experience and revenue, whether it’s a faulty lock, a broken step, or even an electric shock from damaged wiring.
Here at Safer VRs, we educate vacation rental owners and managers like you on what and how to best protect your guests, property, and, in turn, your investment. One way to do that is through a standard of care for your vacation home.
A standard of care describes a person or company’s obligation to keep their customers or operations safe, as well as how to maintain those safety standards.
You might have heard the term “standard of care” in a medical setting. A standard of care might dictate the medication used for patients with a certain illness, or policies for visitation during a pandemic.
While standards of care help keep people safe, they also reduce the risk of liability, accidents, and vulnerability to lawsuits on the business. Meaning? Standards of care protect medical businesses, and they can protect your vacation rental business, too.
There aren’t many statistics showing the number of safety incidents that take place in vacation rental properties. However, a little observation of the news reveals growing occurrences of incidents in short-term rental properties, like:
Of course, these aren’t everyday occurrences.
But imagine a pool drowning took place on your property?
…A violent crime?
….A poisoning due to a faulty carbon monoxide detector?
Any of these events would be enough to seriously harm your business, be it through exorbitant legal fees to defend liability or lack of interest and bookings after negative press.
A standard of care helps you maintain responsible, operational practices to minimize the risks that come with operating a business for vacation properties.
So, what should your standard of care include?
Here’s what your standard of care should include.
Most of your guests just want to get away from the day-to-day hustle and enjoy a vacation. However, the quality of renters in your unit can impact your property and revenue. For example, criminals might rely on short-term rentals because they wouldn’t pass a long-term rental agreement screening. Fraud is also a growing risk in the rental industry, as some renters might carry out charge-backs to avoid paying for their stay.
But beyond criminals, perfectly law-abiding guests can still hurt your vacation rental business. This might look like a March break group of college students throwing a party, who damages much of your furniture. Or, a crabby guest might look for any and all opportunities to get out of paying for their stay.
You might note guest screening best practices like:
We mentioned that pool drownings have increased recently — let your standard of care mitigate the chance! Here are some safety procedures you might include in this section of your standard of care:
Was your new hardwood so smooth that it caused guests to slip and fall? Unfortunately, you could be liable for damages. The trick to reducing the risk of slips and falls is to maintain safe stairs and handrails.
Consider these slip-and-fall safety measures for your standard of care:
Guest communications might feel tedious at times, but your guest must be able to reach someone in your business at all times within a timely manner.
Here are some tips for guest communication protocols in your standard of care:
Fires are devastating to both people and property. Protect your vacation rental management business with these fire safety procedures:
Cleanliness is a common complaint among guests who leave poor reviews for vacation properties. You want to ensure your property is clean as a whistle — but not at the risk of toxic poisoning to children, liability from improper labeling, or spills.
The best way to ensure a consistently clean space in a safe manner is to follow these cleaning procedures:
Some areas on your rental property might not be fully safe for guests to access. This might include unfinished basements, messy garages, or certain parts of a forest that fall within your property line. Consider safety risks by including protocols for guest access in your standard of care:
Bottom line? A standard of care is a key component of a successful, safe, and revenue-generating vacation rental business. Plus, it offers peace of mind that your guests’ stay will be safe and smooth.
But while it’s a strong start, you can always go further to protect your guests. Safer VRs offers a variety of courses for vacation homeowners about how to keep their properties safe, whether through security protocols, considerations for children.
Eric Thibodeaux brings 21 years of experience as a vacation rental manager and is currently a partner in two property management companies. He filled a gap in the industry when he decided to offer resources to rental owners on safety and loss prevention education.
Sign up for our ultimate vacation rental safety course today!