What Is a Short-Term Rental?
Short-term rentals are gaining in popularity as an investment option. Why? Because they offer high cash flow and a great return on investment (ROI).
Short-term rentals are usually defined as rentals that are 30 days or less. They can be a great option for people looking for a place to stay while on vacation or for business travelers who need a place to stay for a few days or weeks.
The rise of the sharing economy (a.k.a. the gig economy) has made short-term rentals more popular than ever. Platforms like Airbnb and VRBO have made it easy for property owners to list their homes or apartments for rent. And with the click of a button, travelers can find and book a place to stay in just about any city in the world.
This article will give a quick overview of short-term rentals, from the basics of how they work to the benefits and some basic queries about the short-term rental.
What Is a Short-Term Rental?
A short-term rental is a vacation rental that is 30 days or less. As vacation rentals have become more popular, so have short-term rentals.
If you own a second home or vacation property, you may make money by renting it out when you're away. And if you live in an apartment or rental property, you may be able to rent out your space for a short period. Because short-term rentals are usually vacation markets, they're often in high demand.
This type of rental can be a great way to earn extra income, especially if you live in a popular vacation destination.
There are many reasons for the high demand for vacation rental homes.
People are looking to get away from their busy lives and relax in a quiet, secluded place. Vacation rental homes offer that escape.
Hotels can be expensive, and vacation rental homes offer a more affordable option.
Moreover, intra-city office goers look for vacation rental homes as it is more economical to stay in a vacation rental home rather than a hotel if they stay for more than a week.
Vacation rental homes also offer more space than a hotel room, making them ideal for families or groups of friends traveling together.
With the boom of work-from-home, people are deciding to work from anywhere in the world. A short term rental offers the flexibility of working from a new and exciting place periodically.
The Types of Properties That Are Best Suited for Short-Term Rentals
How to Find and Screen Potential Tenants?
Now that you know what a short-term rental is, you're probably wondering how to find tenants.
The first step is to list your property on a vacation rental platform like Airbnb or VRBO.
When you list your property, be sure to include clear, accurate photos and well-written descriptions.
You should also set your rental price at a competitive rate.
Once you've listed your property, you'll start to receive inquiries from potential tenants.
When you're screening potential tenants, be sure to check their references and reviews.
You should also require a damage deposit.
This will help to protect your property in case of any damages that may occur during the rental period.
Increase Your Income With a Short-Term Rental
The popularity of vacation rentals has led to a rise in short-term rentals. If you own a vacation property, you may be able to make extra income by renting it out when you're away.
If you can't manage your vacation rental property yourself, you can always hire a management company to do it for you. They will make sure your property is well-maintained and rented out to responsible tenants. Most importantly, you'll get the best possible ROI (return on investment) by leveraging the services and expertise of a professional short-term rental operator such as Desired Stays.
This can give you peace of mind and free up your time.