Cybersecurity for Vacation Rentals: Insurance and Best Practices

As a property manager, you take all sorts of precautions to protect your short-term rental homes, ranging from changing the locks periodically to installing security systems and cameras to monitor the state of each of your investments. Though these efforts are all well and good, you should, hopefully, be taking similar precautions to guard against digital threats.

Cybersecurity for vacation rentals represents an important factor in providing your guests with a smooth experience. Most guests book their stay online, after all, likely using your online portal to pay for the rental, make reservations, and communicate with you during their stay. If you aren’t taking the concept of cybersecurity for short-term rentals seriously, you may be inadvertently exposing your clients to undue digital risks. 

On that note, below is everything you need to know about protecting your vacation rental business with insurance and cybersecurity provisions. 

Why Does Cybersecurity for Short-Term Rentals Matter? 

Cybersecurity for vacation rentals has become a pivotal aspect of the industry, as many property managers rely on online booking platforms to communicate with their guests and process payments. 

While these technologies have undoubtedly worked to improve the guest experience, they also continually open up new vulnerabilities that bad actors can exploit. A single cybersecurity breach, for instance, can lead to data theft and financial losses, tarnishing your reputation in the process. 

Imagine a scenario where a hacker gains access to your rental booking system, proceeding to steal guest information and payment details. In response, you might incur negative reviews and lose the trust of your valued clients. 

But that’s not all. You may also incur direct liability and be subject to lawsuits. Once you gather a guest’s personal information and payment data, you are responsible for keeping it safe. Failing to do so may open you up to civil liability and thousands in damages.  

5 Digital Security Tips for Vacation Rentals

The digital world is vast and complex, and that means there aren’t any quick fixes that will protect you against every cyber threat out there. Instead, you’ll need to take several steps to protect your portfolio and guests. 

With that in mind, here are five tips to help you improve cybersecurity for vacation rentals: 

1. Change Passwords Frequently 

Generic Wi-Fi passwords can provide an easy point of access for hackers, allowing them to penetrate your network and the devices that connect to it to surf the web. As such, you should change your Wi-Fi passwords often, generally a minimum of once every 90 days.

You should also use strong passwords for your booking platform accounts. Don’t use any easy-to-guess passwords like the names or birthdays of your loved ones. And like your Wi-Fi password, make it a habit to change these passwords every 90 days as well. 

2. Limit Access to Smart Technologies

Your rentals’ smart technologies and other Wi-Fi-enabled devices offer added convenience to your guests. But they could also provide a back door into your rental’s network. 

A few devices that can create such vulnerabilities include the following:

• Webcams
• Online gaming systems
• Routers
• Smart TVs
• Smart refrigerators
• Internet-connected coffee makers

As such, you may want to limit guest access to these devices and prevent them from connecting things like their phones to your network. 

3. Sign Guests Out of Any Streaming Services

Signing guests out of any streaming services they use on your smart devices is arguably more about respecting their privacy than it is about cybersecurity. Nevertheless, it is a simple step that shows that you care about making your guests’ experience as safe and enjoyable as possible.

During your post-stay clean-up, go through and sign all smart TVs out of any streaming platforms like Netflix and Disney. By doing so, you ensure that no future guests will take advantage of your past clients’ subscriptions. 

4. Use Two-Factor Authentication

Two-factor authentication (2FA) requires users to verify their identity by two separate means. For example, you may have to enter your password and then input a code that’s sent to your phone via SMS. 

By requiring something that only you would know at a specific point in time, 2FA offers a secondary layer of protection in the event that hackers guess or steal your password. As such, if your booking platform offers 2FA, use it. Inputting two different codes may be a bit tedious, but it’s far better than having your account hacked. 

5. Manage Your Rental With a Secure Platform

The rental management platform you rely on will make or break your business. Use a reputable solution that’s protected by robust cybersecurity measures, including encryption, monitoring, and firewalls.

Keep in mind that most platforms use a shared responsibility cybersecurity model. They will protect your data while it’s on their servers, but you must ensure you are connecting to the platform via a secure network. Consult with a cybersecurity specialist and have them modernize your router and equipment so you can enjoy peace of mind while managing guest data. 

The Role of Insurance in Cybersecurity for Vacation Rentals

A broad liability insurance policy can provide protection against the repercussions of a data breach. It can cover your attorney’s fees and court-ordered payments that stem from lawsuits initiated by guests. 

For example, let’s say that a hacker steals a guest’s credit card information and defrauds them of $10,000. If the guest comes to you to recoup the money, your liability policy will help cover the costs you incur.

The best policies also include protections against lost revenue. In the event that a data breach causes all of your guests for the next two months to cancel their reservations out of fear that their payment information will be stolen, your policy may help you recoup part or all of the lost rental revenue.

Elevate Your Cybersecurity for Vacation Rentals With Safely

Physical security systems are never foolproof. But neither are cybersecurity measures. That’s why you need a great insurance policy from a provider that understands the needs of property managers.

Safely promotes better cybersecurity for vacation rentals by providing customizable insurance policies that can protect you. To learn more, explore our custom short-term rental policies today!