All Forum Posts by: Zach Sprau

Hello, 

Hoping to get some suggestions on rental property insurance. We are getting ready to rent out our property in North Carolina so we need to change from our homeowners insurance to rental property insurance (that includes replacement/rebuild coverage on the property). 

We will be entering a long term lease with a small LLC who will then AirBnB out the property. We will have a LTR agreement with the LLC (that includes a provision for STR), and then the LLC will rent it out as a STR. Our current homeowners insurance provider does not have a product that will cover us for this situation, and the broker they referred us to seemed to be a bit stumped as well, but they are looking into it.

Does anyone have experience with this or have any suggestions for insurance companies/products in NC that would cover us for this situation?

Furthermore, what type of insurance should require the LLC to have? We've been told that for our specific property we should require them to have $100k of insurance (outside of what AirBnB provides) and that we should be listed as an interested party on the policy so we would be notified of any changes.

Thanks! 

Zach

@Shaun Kelly, I live in Boone and often work in Linville doing electrical work. Many short term rentals in the area. Happy to help if I can. Looks like some good answers on here. Feel free to send me a message if you have any more specific questions.

@Matt Proudlove, as a solar installer and project developer in NC, I believe our residential clients typically get 5-9% return on their investment considering the decreasing module prices and the current federal tax credit (starting to phase out after 2019) if they are net metered. The returns may also increase over time as electricity prices increase. Make sure to check with your local utility about credit schedules (net metering, sell all, etc).

Better yet, why not combine solar and real estate by putting PV on your rental properties?

@Tristan S., I cant speak to Blowing Rock or Banner Elk, but looks like @Adam Payne is a great resource.

I live in Boone working on my first house hack and tend do do some STR with it periodically. If you're thinking about Boone, where you are located in Watauga county can make a significant difference. Make sure you know the zoning of your house. Zoning and HOAs will be items to consider for sure. If you're outside the town limits it won't matter as much. Also make sure to check out the recent articles in the local paper (Watauga Democrat paper online) about STR noncompliance and the plan to start enforcing it over time.

Finally, you have to pay county occupancy tax monthly to Watauga county with STRs.

Happy to be a resource as you’re figuring things out.

@Adam Payne, if you’re interested in building in the area let me know. Living in Boone and working in the construction industry I know a lot of good people (realtors, contractors, etc). Happy to serve as a resource.

@Steve Fitzgerald, I live in Boone and I’m happy to serve as a resource for you. I have several friends with short term vacation rentals and they love it. Management companies can be pricey in the area, but there are ways to make it work depending on your contacts.

I work in the construction field in the Boone area as an electrician, and know some good, honest people if you need some recommendations. Feel free to write me a separate message if you’d like to discuss further.

Also, if you’re thinking about doing short term vacation rentals within the town of Boone, make sure to do your homework. There have been many discussions as of late regarding non-compliance with residential zoning regarding AirBnB. Check out the recent article in the local paper up here (Watauga Democrat). Hope this helps.