I think there is a solution to the OBX rental income dilemma. This article will explain this problem and provide a solution so that, hopefully, people don’t have to be in this position in the future.
As of this moment no visitors are allowed on the Outer Banks. Local government is concerned that our limited health care facilities could quickly become overwhelmed by the pandemic. There is no set date when vacationers will be allowed back in. This could become a real problem for many vacation rental homeowners. A large percentage of these folks count on the summer rental income to help carry the costs of owning a home here.
On top of that, buyers of vacation rental homes make key buying decisions based on the rental income a house can generate. Knowing that most of the house bills will be paid with income from rentals gives the owners peace of mind. I’ve always thought a vacation home should not be something that you lose sleep over. The last thing that I want to do is sell someone a house and then have them worry about how they are going to pay for it.
Everyone knows the Outer Banks gets hurricanes. When one takes aim on us the local government issues a mandatory evacuation for all vacationers. The beach won’t open back up to vacationers until its safe for both residents and vacationers to be here. Some owners purchase vacation rental income insurance to protect against these times. Unfortunately, this type of insurance does not cover pandemics. Can you imagine a pandemic hitting in June or July? It would be a disaster for all involved.
So how do we avoid this OBX rental income dilemma in the future? Some local insurance agents believe that future vacation rental income insurance will cover pandemics. There certainly will be a demand for that type of policy. Risk should be minimal for the insurance company since pandemics are rare. It will be interesting to see how quickly this need is filled.
Today it is unknown when our summer rental season will start. Please join me in praying that we get through this quickly. In the meantime, if you cannot get here and need something here then please feel free to call on us.