Investor Series – Short Term Rentals
October 15, 2022
Short term rentals are the hot new segment in the Real Estate industry. The concept is similar to a bed and breakfast or hotel where you rent out your property by the day/week for a premium cost vs. what you could get on a monthly or yearly basis. There are a lot of people who prefer to rent a home or cottage vs. a hotel room and these short term rentals are prefect for them. There are a few websites dedicated to these short term rentals that allow landlords and tenants to find each other such as Airbnb or Vrbo among others.
The ideal home for these ventures is a waterfront property of some sort, but almost any property will work if it’s set up for multiple guests to sleep and the property is in good condition. You’ll have to figure out a few things such as resetting the property after guests have departed, ongoing maintenance and security, damage issues, advertising, and any management of the home. Sometimes a management company can handle all of this for you but will cut into your cash flow so there are tradeoffs.
One thing to consider is the zoning and municipalities stance on having a short-term rental in that area. Some governments have taken steps to prevent these from occurring due to the noise, traffic/parking and nuisance issues that arise by having such constant turnover at a home. Some associations have banned the practice so its important to do some research and find out if you’ll be dealing with any pushback or code issues by having a short-term rental.
If done correctly, a short-term rental on a property can be a huge money maker and its worth considering for many homes!
