Though most rentals on the market are long-term, many owners are beginning to recognize the benefits of owning a short-term rental. Here's a list of our top five.
1. MORE FLEXIBILITY
You'll be able to spend more time in your property. Simply block off the dates that you want to reserve for vacation stays and enjoy spending time with family and friends.
2. LESS WEAR AND TEAR
In general, vacation rental contract lengths range from a few days to a few weeks maximum. These shorter stays ensure that your property is checked on and maintained regularly, keeping it in tip-top condition.
3. HIGHER RENTAL INCOME
Not only can you set fluctuating rates depending on your area’s high and low seasons, but you can also set minimum tenancy lengths for your most popular times of year to ensure that you receive maximum profits.
4. TAX BREAKS AND DEDUCTIONS
Many vacation rental owners are entitled to certain tax breaks or even deductible property expenses because the property isn’t being let long term. Be sure to check your local authority’s rules and regulations on this.
5. LESS HASSLE
Property management tailored for short-term rentals gives you an easy way to be a real estate investor without having to deal with the hassle. You can leave all the aspects of managing your vacation rental to the professionals while enjoying your rental income.
ACTUAL STATISTICS
Casa Del Sol is a four bedroom home that was previously listed as a long-term rental. It typically rented for $2,000 a month. If rent was paid on time, the property would net $ 24,000 annually.
After becoming a short-term rental, this same four bedroom property brought in a net income of $33,406.84 (from March 2018 to March 2019) after management fees and utilities were paid. This left an increased profit of $ 9,406.84. The home was professionally cleaned and cared for with little to no damage and available for the owners to use personally throughout the year. All the while, the property is building equity while the owners enjoy the tax advantages.
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