The long and short of it…
Have you considered short-term rentals? This would include vacation rentals, families that have closed on their first house but not on the second, college students or temporary workers. Large corporations often prefer to rent a house for a short time versus paying the hotel fees for new or temporary employees. In the event of catastrophic damage to a home, insurance companies will often cover the short-term rent while the owner’s home is repaired. This is an opportunity which is often overlooked by property owners. In this article you’ll find…
Differences Between Long-Term and Short-Term Rentals
Tenants who are on a twelve month lease will want a vacant house so they can bring in all their stuff whereas short-term rentals are usually offered fully furnished. This would include not only furniture but should also include a fully equipped kitchen along with sheets and towels. Utilities are also included in most short-term rentals.
Why Consider a Short-Term Rental
Are you considering listing your investment property within the next 12 months? If so, having a short-term renter will encourage homestead buyers as well as investors. If a buyer plans to personally live in the property, they will appreciate a short-term lease. Showing a property that has furnishings tends to encourage a sale quicker than a vacant home.
If you are in an area with a high vacancy rate and few tenants, short-term rentals can fill voids between locating long-term tenants. This will keep the cash coming in with the opportunity for long-term income in the future.
If you own an investment property in a vacation area, short-term vacation rentals can bring in a lot of money in a short period of time. Renting on a daily or weekly basis can easily triple the monthly rent you would have received. This also frees up the home for your personal use when you are looking for a vacation.
College rentals are rented by the bedroom rather than by the whole house. Once again the rental income on a per bedroom basis can easily exceed the income generated by a single family. Having separate lease agreements for each student will keep the cash flow more steady and creates a higher degree of individual responsibility.
If you own an apartment building, consider furnishing one unit and using it as a short-term rental. It can be a great way to earn a little extra income. Your temporary tenants will appreciate it as well.
How to Manage a Short-Term Rental
Managing a short-term rental is more time consuming than a year-long tenancy. The transition and day-to-day concerns can be virtually eliminated by hiring a good property management company. Not only will they work hard to locate back-to-back short-term tenants, but they can offer cleaning services and other amenities while you enjoy the increased cash flow. For more on the famous AirBnB system view this article as well.
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