The fame of short-term rentals has spread greatly over the last few years. As a Santee rental property owner, you may be seriously considering buying or converting one of your properties to a short-term rental. Though short-term rentals are really good for some, other investors may find that the amount of work involved isn’t actually worth it. Before you proceed, it’s a brilliant idea first to examine both the pros and cons of owning a short-term rental property.
Maybe the number one advantage to owning a short-term rental property is probably a chance for more rental income. Short-term rentals usually rent for more per day than a long-term rental would. So in situations where you can keep your property rented out, you could definitely earn a few more each month than you’d get from a long-term lease. Short-term rentals let you raise prices at times of high demand, helping you to maximize your profits.
Another well-liked benefit of owning a short-term rental is that it gives a lot of flexibility. Conditional upon how you go about it, you could be renting your property a week at a time or for several months. If your rental property is in a great vacation area, you could definitely use any vacancies as an opportune chance for a personal break. You can additionally simply set up your property on rental platforms like Airbnb, which happily means never providing leases. You can likewise remove your listing from those sites at any time should you decide to change your property back to a long-term rental.
At the same time, there are a few drawbacks to owning a short-term rental. Even supposing there is usually a bigger chance for higher income, at the same time, that income is a lot less stable. The majority of short-term rentals experience seasonal fluctuations, which means your property might be sitting empty many more times than you would like. Despite that good marketing and creativity might help you avoid this, it’s essential to call to mind that even your best efforts may not be enough. Short-term rentals are very sensitive to economic conditions, and economic downturns usually generate less demand. Take one example, you may have detected that the short-term rental market has suffered quite a lot this year due to stay-at-home orders and travel restrictions caused by the pandemic.
One other relevant drawback of short-term rentals to remember is that you will have higher costs. Preparing a short-term rental could mean having to furnish and stock it with essentials. If you desire your property to be competitive, it will need to have excellent furnishings and décor. You’ll, moreover, have to make certain that your tenants have things like linens, toilet paper, pots and pans, and more. These items will need to be re-stocked between tenants, which can indeed begin to add up over time.
There will additionally be more cleaning and maintenance required for a short-term rental. If you’re doing it yourself, making sure the place is ready for the next tenant will take a considerable amount of your time. But hiring someone to do it for you could get quite expensive, especially if your property is in high demand. It’s vital to be sure that the place is being meticulously cleaned between tenants and that significant maintenance and repairs are being done correctly and in due time. Not implementing this could lead to bad online reviews and fewer bookings down the line.
One final note, it’s critical to ascertain state and local regulations on short-term rentals. The majority of cities have made strict regulations banning short-term rentals in some areas, and so have quite a lot of homeowners’ associations. On the account that restrictions will differ from place to place – and even from neighborhood to neighborhood – it’s vital to go about your research ahead of buying or converting a property to use as a short-term rental.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.