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As the short-term rental market continues to grow, many are wondering, “How can I get in on it?”. Short-term rentals are often underused although highly profitable avenues of real estate investing. During this article, we will discuss why the short-term rental market is booming, what some advantages are for owning short-term rental properties, and where to start.
With millennials starting a family of their own and, in turn, taking family trips, they are paving the way for an alternative sort of stay from the traditional hotel and motel avenue. The popularity of internet booking sites such as VRBO and Airbnb has played a significant role in boosting the short-term rental market, which was once only reserved for cottages along the shores of lakes and the ocean during the summer months.
With the endless options of location, style, and atmosphere of a rental property, virtually everyone can find a property that they truly feel at home in while away from home, or they can try something completely new such as staying in a tiny house, yurt, or cabin for instance. Another contributing factor is that as Gen Z and Millennials find their way in the working world, they have adapted more of a nomadic ideology and travel, even if for a shorter time frame is higher of a priority than generations past.
The most significant advantage might be the most obvious – no long-term tenants to have to chase around for rent every month. If you host your rental property through a booking site, there is a guaranteed upfront payday, unlike some troubled, long-term tenants; this means that there is no guesswork or pestering for that rental fee.
Depending on the property, the weekly rental rate could also be significantly higher than a long-term month-to-month lease. In some cases, upwards of thousands more – location dependent. Once you get a team of dedicated people to assist you with the rentals, including a handyman and a maid for turnover services, they are also much easier to maintain with low stress and high rewards.
The advantage of having a short-term rental is that the tenants keep moving in often weekly - this means if you have furnishings, they will often see minor wear and tear than if you left them for long-term leases. This also means that the property is not used daily, significantly decreasing the utility costs.
First, you need to consider the type of property you would like; this can range from a typical vacation home with water frontage to a unique stay like a remote cabin or tiny house. Once you decide that, you will need to determine the location – this is huge! Depending on the site, there will be specific regulations surrounding short-term rentals. Ensure you have a trusted agent who can help you navigate each area’s specific guidelines for your potential rental.
Is buying a property to use it as short-term rental the start of your journey to financial freedom? It could be! Consider the above discussion and look at your finances to see if you are in a position to start your search. A trusted local agent is only a phone call away!
Anthoney Hanks Realtor®️, licensed Broker of Beyond 404 Realty