Housing Swap: Just the Facts

In an effort to conserve resources on summer vacations, the popularity of housing swaps has grown tremendously. Families and couples have been using Craigslist and eBay to list their homes available during certain portions of the year. The concept is not entirely new. Timeshares are a tested and popular way to enjoy vacationing. In timeshare properties, individuals split ownership in properties. These properties are generally part of a greater network. The owners place their home up for “lease” the weeks they technically own it, and they have the option of trading with another family in the network. Housing swaps are different on a few levels, however. The biggest difference is you are offering your primary residence to another group.

You Must Live in a Desirable Place

Housing swaps typically occur between two groups who each live in a desirable location. For example, one group may live in New York City, one in downtown Chicago. Both of these are vacation spots; you do not need to live near the beach. If you live close to a major attraction, such as Disney World or the Super Bowl Destination, you may also consider a swap. In fact, families come from all over the world to attend these attractions. To swap your coastal home, you will need to consider which times of year are attractive based on weather where you live.

You Need a Contract

Protect yourself legally while you are staying in another person’s home and visa versa. You should have written proof you were given permission to reside there. The contract should also explain any damages already present in the residence you will inhabit. Likewise, document the condition of your home. Should you need to recover damages from your tenant in the future, you will need evidence they caused the damage. You will also protect yourself by naming an exact time the tenant must vacate by.

You Should Consider Insurance

Your homeowners insurance may not cover any damages that occur when tenants are staying in your home. Ask your insurance company what will occur if, say, a fire starts in your home while you are not there. If the fire is the fault of the tenant, it may not be covered. Similarly, you will want to make sure the tenants are responsible for any liability suits that may be caused by their actions on your property. If they leave a garden hose out and a neighbor trips on it, for example, you do not want to be sued.

It Takes a Certain Type

Not everyone will be happy with a housing swap. You may have a difficult time if you are particular about your belongings and personal space. You can set rules as to which rooms and closets the tenants are allowed in. For example, a rental property usually has an “owners closet” where valuables are locked away. However, the tenant will still be sleeping in your bed, cooking in your kitchen, parking in your garage and using your bathroom. If the thought of this bothers you, you are probably not a good candidate for a housing swap.

Tags: Housing swap, Vacation home rental