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This is part two of a three-part series on the topic of short-term rentals as investment properties. This is not just for investors buying single-family homes but also for short-term renting in your own home and the effects that it has on the market. We have come up with six excuses that people give regarding why they are not interested in getting involved with a short term rental. Thanks for reading!
You can also listen to this podcast episode HERE
Short-Term Rentals Increase Landlord Competition
Some people have created this thought process that because short-term rentals have been introduced into society that everyone can now be a landlord. However, this is not entirely true. Before short-term rentals were a thing, anyone could technically be a landlord. You just needed to buy a property. Easier said than done for most of us.
When we talk about the field of short-term rentals, competition is typically a good thing. A few years ago the only competition were hotels. They were the big dogs in the business and there was no way to overcome them. But today we have a growth of short-term rentals, which gives an opportunity to all homeowners and those interested in becoming landlords to invest in their properties. Most people get scared when they think of becoming a “landlord”. There is a lot of baggage with that term. Howver, there are certainly upsides in being a landlord, or in the short-term rental game, a host.
Therefore, you accept all the responsibility of creating a unique experience and a comfortable environment for all your guests. This is what really scares new investors, and they should not fear this. Renting has evolved and to stay competitive you must evolve with it.
Evan: There is a series on Netflix, called “Stay Here”. It was released in August 2018 and it is a documentary about different properties turned into short term rentals. The show’s hosts help the landlords improve their services and thus be able to obtain higher profits. If you want to get an idea of the things that you may face by having your own short-term rental, I invite you to watch this series. When you enter into the short-term rental business you must plan each step and each detail of the stay of your tenants. Quickly anticipate the maintenance problems that may arise and know how to solve them to give the best possible service.
Fly Solo or Management Company
Carrying out a short-term rental means much more than investing in a property. There are many factors that will influence the outcome of your earnings, such as the state of the property, the interior decorating, and the services you provide.
Many owners and investors choose to leave all this in the hands of a management company since. The daily check-in and check-out schedules can be daunting and you may not have enough time to get to the property and clean for the arrival of new guests. Cleaning is no easy task and can take a good chunk of time to property clean.
A prestine rental will make the experience of your guests more incredible. Therfore creating future income should they decide to return and invest in you again. You should do your homework and understand if you can’t do it by yourself then an alternative is to hire a management company.
Most short-term rentals are about the experience. It is about creating a unique environment for guests to get away from their daily routine in life. However, there is also a demand for hourly rentals. I know what you’re thinking! And I’m not talking about investing in a motel, but rather something that is becoming more common nowadays.
Many artists, photographers, musicians, or creative entities may be interested in renting your property if it is attractive enough. Appealing to guests for a wedding shoot, shots for a music video, place for interviews, modeling photo shoots, or simply an artist who needs a couple of hours to feel inspired is a fantastic way to market your rental in a different light.
No matter if you are going to do a short-term rentals, long term or even a special hourly rental, you will have to think decide if you are capable of maintaining it yourself and getting the help needed frrom a magangement company.
Until next time…
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Do not miss Part 3 of this series on investing in short-term rentals. Episode 6 Coming soon!
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