The real estate industry is always changing, and so it’s important for landlords to change up their strategy once and a while. There are always things to revise when it comes to business plans and clientele to target.
One example of this is the increasing trend of short-term rentals brought about by the rise of AirBnB. Since this rental platform has brought worldwide recognition to short-term, flexible rental bookings and vacation property management, a lot of landlords are changing their business strategy from long-term to short-term.
However, this switch doesn’t come without some pros and cons. Here are some factors to look into when you consider focusing on short-term rentals going forward.
Technology makes a landlord’s job easier: Take AirBnB for example. This social platform has made it easier than ever for landlords to gain online visibility for their properties, speak to potential tenants, and acquire bookings with the press of a button. In today’s digital world, it is important for anything and everything to be accessible to consumers in a world dominated by smartphones, and this includes rental properties.
Plus, the emergence of new landlord software, such as an online tenant background check, makes everything in the rental world easier. And that means much less stress for landlords.
The earning potential is exponential: Short-term rentals are quite lucrative, as most vacationers and potential tenants only travel for a set period of time. This means they will pay a premium, so you’re able to raise the price to what you see fit depending on the demand. Since short-term rentals are becoming more popular than hotels, even if you raise your prices, most vacationers will book with you as it offers a better financial decision than more typical options.
There is less wear and tear on the property: Because tenants are only at your property for a short while, this ensures that the property stays in better condition than if you had someone stay there for a long time. When rentals come in short bursts, the tenants are more likely to treat your home like a hotel rather than their home, and they won’t be destructive or careless as they might be if they stayed for a longer period of time.
You must keep up with maintenance at a faster pace than normal: Since you have a revolving door of tenants, you need to keep up with any maintenance concerns as quickly as possible. When you have long-term rentals, you may have a bit of wiggle room when it comes to fixing a leak, a wobbly step, or a clogged drain. This isn’t the case so much when you have short-term rentals, as it’ll be common to have a association management experts do a thorough property check every time a tenant leaves.
The competition is steep: The emergence of AirBnB technology is twofold — while it may be great as a way to boost visibility of your property online, other landlords in your area may be thinking the exact same thing. This means that the competition for the right price and locating the right tenant is incredibly steep, and requires a lot of experimentation and innovation to ensure you can make a living.
There are a lot of different pros and cons to changing your rental strategy from long-term rentals to short term. As long as you keep these thoughts in mind, you can ensure your rental property is incredibly successful at all times.