Why you Should have Short-Term Rentals
How to take your real estate father.
Good morning, Everyone!
I hope you all had a great weekend. Today I want to talk about a hot topic in the real estate world. That trend is short-term rentals, or “STR” for short.
What is a short-term rental?
Short-term rentals are furnished residences rented out to people traveling anywhere from a couple of days to a month. People nowadays love to stay in houses vs. a hotel because of the added convenience of space, washer/driver, and a kitchen. These places are often called vacation rentals, and they’re everywhere on Airbnb.
Theyre a hot topic because comapred to the traditonal model the potential for profit can be higher by up to 25% or more after expenses and dpending on a multitude of other factors we will talk about later.
But first lets go over the pros
The best parts of vacation rentals
The Money:
These types of rentals have the built-in ability to adjust demand by changing the nightly rates of your residence. So, naturally, you’d want to do this during peak traveling seasons for your area. That way, you can maximize your rental revenue, unlike the traditional model. But, of course, how much you make depends on the type of residence and location.
Control:
One of the most significant advantages of STRs is choosing what nights you rent out and what nights you don’t. In addition, unlike Long-term Rentals, you can stay in your vacation rental whenever you want!
Minor wear & tear:
One of the pros to having many different guests compared to one person/family is that it can take a lot longer for noticeable signs of damage in your residence.
Versatility:
It is easier than ever to have smart locks installed and hire a vacation rental company to take care of all the day-to-day operations. You can be as hands-off or on as you want.
These are some of the best benifits in mt opinon. But STRs can be alot to handle at times, so lets look at some cons.
Things to consider
Critics:
Airbnb guests and other services are very vocal and will not hesitate to comment about a dirty floor or appliances in anything but perfect condition.
Consistency:
Most likely, the biggest drawback to short-term rentals is the consistency of your renters. This can be due to numerous factors, but the location and season are among the largest. Hot tubs can be a great way to attract more guests to a place that has suboptimal weather seasons.
Regulations:
Before even considering purchasing a property, you must check with the local jurisdiction and restrictions. For example, some areas will limit how many days you can rent or not allow vacation rentals.
All of this being said, everything is subject to your lifestyle and what gives you peace of mind. Many people are comfortable with traditional long-term rentals because they can be a lot less stressful with consistent tenants and a reliable source of income.
Standing out
let’s talk about how you can make your short-term rental stand out from the rest. If it’s not surprising, people constantly want the red carpet laid out in front of them. You can do this in your vacation rental game by having stuff for people to do when they get there. It can be as elaborate as a mini-golf course and themed rooms. It can be as simple as a Hot tub or pool, But the overall goal is to create an experience for your guests.
Tiny homes are another great solution to attract more guests. In addition, they can be much cheaper when compared to the costs of building a traditional home or flat out buying a house on the market.
Vacation rentals in the middle of nowhere like the one seen above are often the perfect types of properties to attract and attract guests and maximize your year’s revenue.
Short-term Rental maybe not be suitable for you, and that’s alright, but it’s essential to know all of your options for investing in the real estate market. I hope everyone learned something today and saw the clear benefits of short-term rentals. As always, have a great day, and share this post with a friend if you feel like it. :)