Deposits from the tenant.Security deposits from the tenant in residential dwelling units shall be deposited in a trust account with a licensed and federally insured depository institution lawfully doing business in this State or the landlord may, at his option, furnish a bond from an insurance company licensed to do business in North Carolina.

@Makan A Tabrizi Check with your insurance as I’m not allowed to have gas stoves or ovens.

He kept in touch with local contractors, and one tipped him off about a homeowner who ran out of funds mid-renovation.

We have not disabled ours or converted to gas, but Tenant must sign a Fireplace Addendum stating if they use it, we require a higher renter's liability policy with us as additional insured, rules on wood, storage, use, safety, they pay for yearly professional cleaning each year they are there, etc.  

Bernard- Akita- Wolf hybridsUnfortunately, these are prohibited for insurance reasons.

My previous insurance cost me $722!!

However, many lenders and insurance companies are tightening restrictions and premiums for these types of properties.

Insurance is the FIRST line of defense.  

On top of that, they require homeowners to hold the title for two years before being allowed to use the property as a short-term rental.

As expenses fluctuate (property taxes, insurance, maintenance items, etc), the cash flow will be up and down and unreliable.