The surprising popularity of short-term rentals has developed hugely over the last few years. As a Lehi rental property owner, you may be seriously studying about buying or converting one of your properties to a short-term rental. Even if short-term rentals are a nice choice for some, other investors may find that the amount of work involved isn’t really worth it at all. Before you go through with it, it’s the right idea first to examine both the pros and cons of owning a short-term rental property.
Quite possibly the number one advantage to owning a short-term rental property is the real probability for much higher rental income. Short-term rentals oftentimes rent for more per day than a long-term rental would. So in case you can keep your property rented out, you could definitely make more each month than you’d get from a long-term lease. Short-term rentals let you increase prices during times of high demand, helping you to maximize your profits.
One other wonderful benefit of owning a short-term rental is that it gives a lot of flexibility. Depending on how you actually go about doing 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 place, you could market any vacancies as a perfect chance for a personal vacation. You can likewise simply put your property on rental platforms like Airbnb, which gladly means never handling leases. You can, moreover, without hassle remove your listing from those sites at any time should you need to turn your property back to a long-term rental.
Then again, there are a few drawbacks to owning a short-term rental. While there is oftentimes a really good possibility for higher income, at the same time, that income is a lot less stable. Various short-term rentals experience seasonal fluctuation, which means your property might be sitting empty significantly more than you would like. Even supposing good marketing and creativity might help you avoid this, it’s imperative to not forget that even your best efforts may not be enough. Short-term rentals are very sensitive to economic conditions, and economic downturns frequently bring less demand. As an example, you may have noted that the short-term rental market has been affected a lot this year due to stay-at-home orders and travel restrictions caused by the pandemic.
Another significant negative for short-term rentals to always keep in mind is that you will have higher costs. Preparing a short-term rental could mean being required to furnish and stock it with essentials. If you definitely want your property to be competitive, it will need to have perfect furnishings and décor. You’ll additionally need 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 a period of time.
There will likewise be more cleaning and maintenance required for a short-term rental. If you’re performing it yourself, getting the place ready for the next tenant will take a bit of your time. But hiring someone to carry it out for you could get pretty expensive, especially if your property is in high demand. It’s necessary to make it a point that the place is being fully cleaned between tenants and that critical maintenance and repairs are being done correctly and on the dot. Not doing this could bring damaging online reviews and fewer bookings at a future time.
One final matter, it’s imperative to secure state and local regulations on short-term rentals. Various cities have made strict regulations stopping short-term rentals in some areas, and so have a lot of homeowners’ associations. Given that restrictions will certainly differ from place to place – and even from neighborhood to neighborhood – it’s significant to fulfill your research in advance of buying or converting a property to use as a short-term rental.
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