Excerpt from: Buying and Owning a Second Home
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| January 09, 2009 | | If you have a second home, it might be wise to take some of these precautions | Many people with second homes rent them out to make a little extra money. This can be a good way to offset the costs of owning a second home. However, you should be prepared and cautious. Here are some tips to help protect you when renting out your second home:
- Have a legal rental agreement. This agreement should be basic, including payment terms and also including a clause addressing damaged property. The agreement should also specify a policy on pets.
- Get an advance rental deposit. As part of the damaged property clause, require an advance deposit of 25% to 50% of the rental cost. Then, at the end, you can return the deposit if the property is damage free.
- Make sure you have appropriate insurance coverage.
- Duplicate the keys. You can send them secure. However, when you are done, change the locks. This can cost around $200, but it is a good idea, since the renters may have made their own duplicates. You can factor this cost into the rent.
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