Renting Out Your Home To Strangers Or To Friends & Family?

Renting out your property can be a profitable and good solution for homeowners, especially if you own a vacation home that is vacant for a large part of the year. When considering renting out, it's common to have doubts whether if you're willing to rent out to strangers, or if you only want to rent out to friends and family. Both options have their pros and cons, and it is wise to make a thoughtful assessment to avoid potential problems.

Advantages of renting out your property to strangers: 

Renting out to strangers through any of the major global platforms, such as Airbnb or Vrbo, can open up a broad pool of potential tenants and guests. In addition, there are some other advantages: 

• Higher Income: By renting out to strangers, you can potentially charge a higher rental price since you have potential guests from all over the world with various personal budgets seeking accommodation.

• Less Personal: This is not an advantage for everyone of course, but some prefer to have tenants and guests with whom they do not have a personal relationship, treating it strictly as a business arrangement.

Disadvantages of renting out your property to strangers: 

• Higher Risk and Uncertainty: Having strangers as guests means you need to spend more time ensuring that they are reliable, although it is impossible to guarantee it completely. Once the guests have arrived, you also need to ensure that they behave appropriately, do not disturb neighbours, and do not damage your property or furniture. This can be challenging and time-consuming when the guests are not personally known to you.

• Higher Costs: As mentioned, most global platforms charge high service fees per booking, and in addition to that, many external companies cover various services you have to pay for such as monitoring, key handover, and cleaning. Furthermore, wear and tear on furnishings and furniture should also be considered.

Advantages of renting out to friends and family only: 

Renting out to friends and family (and even friends of friends) can be appealing due to the already existing relationship. There are several other advantages, for example:

• Trust & Safety: You already know your friends and family and have an established relationship with them. When it comes to friends and family, you can generally trust that they will behave and take good care of your property.

• Simpler Communication: Since they are people close to you, it is easier to communicate and handle any issues or questions that may arise during the rental period. On the major rental platforms, or if you rent out through a rental firm, everything that happens needs to be communicated and reported through the platform or the company, which can tend to be a bit more complicated and time-consuming.

• Win-Win: By renting out to friends and family, you help them find accommodation while generating a rental income for yourself (if you decide to charge for the rental). And even if you don't charge a rental fee, it's great to have people living in your home while you're not there, taking good care of your place. It doesn't get much better than that—a win-win situation for everyone!

Disadvantages of renting to friends and family only: 

Of course, there are also potential disadvantages renting out to friends and family, and it's good to be aware of them as well. Here are some drawbacks:

• Limited Number of Guests: If you restrict yourself to renting out to friends, family, and friends of friends, you naturally have fewer potential tenants. On the other hand, you know who they all are, so even though the supply is lower, it may be more comfortable knowing them personally.

• Less Income: This may not always be the case, but often a slightly lower price is agreed upon when renting out to friends and family. This means a slightly lower rental income, but it also potentially saves you a significant amount of money on booking fees and other costs associated with renting out to strangers.

• More Personal: This is also not necessarily a disadvantage, but some may feel uncomfortable with the more formal aspects of renting out, such as contracts, fees, deposits, etc., when there is a personal relationship with the guest. In this case, clarity is essential, and if you as the owner want a contract (which can be beneficial), you should arrange for one.

Making the right decision for you and your property

When it comes to renting out your property to strangers or to friends and family, there is no simple answer or right or wrong choice. The best decision for you depends on your personal preferences, risk tolerance, and other circumstances surrounding your situation and property.

Fees for both guests and hosts on most of the major platforms for rentals are however increasing, and the risks associated with renting out to, as well as renting from, strangers are significant. Renting out to friends and family is becoming more appealing, but at the same time, organizing rentals like this can be challenging because there has not been an easy way to list your property to friends and family only, or to handle bookings and communication in a smooth way.

heimo - A new way to safely rent out your home

On heimo, you are always in full control over your property rental. Add your home, share it with friends, family and friends-of-friends and rent out as much as you like for a fixed monthly fee (currently it's 100% free). No booking fees for you or your guests. Your guests can enjoy your home while you're not there, and you agree upon terms, charges (if any) and other practical stuff between each other directly. Handle bookings and communication and save memories together in your personal guestbook. Simply sign up, add your home, and share it with your trusted guests!