Renting your primary home for the 2010 FEI World Equestrian Games can be a lucrative and enjoyable experience, but you will want to take specific precautions to ensure the best experience for yourself and your rental guests.

What Legal Consideration Should You Keep in Mind?

Short-term rental rules:
Many property owner's in Lexington and the Bluegrass area are governed by their homeowner's association, which may have regulations specifically regarding short-term rentals. Check with your homeowner's association to find out if there are any rules for minimum stays, fire safety, health code inspections, or permits. Some of these associations will charge steep fines even for the first violation, while others are accommodating their residents by waiving short-term rental restrictions for the World Equestrian Games, so it's always a good idea to do a little research before renting.

Income tax:
According to IRS publication 527, “If you use the dwelling unit as a home and you rent it fewer than 15 days during the year, do not include any of the rent in your income and do not deduct any of the rental expenses.”

Insurance:
Check with your insurance agent to see if you'll need any additional coverage for a one-time short-term rental.