Short Term Rental Management

A short-term rental is a residential property offered for rent to interested guests for a brief period, usually less than 30 consecutive days. The concept of a short-term rental is quite similar to home-sharing except that accommodation is granted only to the guests without the presence of the resident or homeowner on-site. Therefore, guests are allowed extensive use of facilities in the property. Short-term rentals have been existing for quite a long time but it’s popular in coastal and vacation communities such as Big Bear, Palm Springs, and so on.

The rate at which homes are used for long-term rent is staggering. This is due to the rise of the sharing economy which is triggered by increasing tourism and technological advancement worldwide. People now look into their homes to provide accommodation for millions of tourists from various parts of the world annually. In London alone, Airbnb has now emerged a record 60% growth in just over 12 months to over 53,000 listings.

With the emergence and gaining popularity of over 100 renting platforms on the internet such as Airbnb, HomeAway, Booking.com, and VRBO, it is now easier for property owners to advertise their property for short-term occupancy. The short-term rental industry is growing rapidly because of the additional revenue it generates to property owners who would rather rent than to see the property go unused. It has now become a reliable secondary source of income for people who want to make money from their assets. For instance, if you decide to take some time away on a holiday or work trip, you can generate some additional income by turning your home into a short-term let. Besides renting out your property gives you the peace of mind that your facilities are properly maintained and secured.

The condition of your home might be a determining factor that influences its rental performance but an expert short-term rental property manager would be able to predict and advise on the returns expected. Location is a major factor to be considered while running a short-term rental because some places deliver seasonal returns while others may provide steadier returns. It is imperative to know that if your property is at a location of low demand and the returns are average rather than high, it may be difficult to survive against competition and make successful returns. However, if your property is in a location of high demand, you stand a chance against your competition and make higher returns.

Another reason housing managers prefer to go for the short-term lease is the issue of damages. An experience by housing managers proves that short-term rentals help prevent property damages. This seems to be the case because guests tend to stay for a few weeks without taking luxury furniture along or seeking to alter the property state. keeping it properly maintained, secured, and monitored from undergoing deterioration over time.

Of course, there are pros and cons to offering your property for a short-term lease and precautions to follow while considering this service. But before diving into that, there are a few questions you need to ask yourself.

1. 1. Is your property on a holiday or tourist location?
2. 2. Is your property well-furnished and prepared for rent?
3. 3. Can you afford higher vacancy rates?
4. 4. Can you create time for the task?

You also have to make sure that your home is well insured for short-term lease. This is to provide cover for additional risks during the guest’s stay. Other contingencies such as contents cover and liability insurance should be considered in the case of an injury, damage, and loss of properties due to fire or leakage.

The high returns imagined in short-term rent also pertains to the potential risks and additional effort involved in renting out your property short-term to a prospective guest. For issues such as wear and tear caused by multiple incoming tenants and invalid availability which are the two common issues experienced by landlords in a short-term lease, an additional cost is added so as not to eat out from the landlord’s profits.

Tenants sought out short-term lease because it is a cheaper and better alternative to hotels. lodging in hotels, they are viewed as tourists in the community while short-term guests are viewed as Locals. Managing a short-term let is a skilled practice and those who are in the business know.

What properties can be offered for short-term rent?

What makes home-sharing and renting services special is that there are numerous ways to go about it. Once you get a place people can sleep, you can decide to share the apartment or opt-out of the apartment for the guest to acquire cash. These are some properties that can be listed on housing platforms.

1. 1. Additional rooms
2. 2. Guesthouses and quarters
3. 3. Tent
4. 4. Condos and townhouses
5. 5. Extended family suites
6. 6. Vacation homes and luxury condos
7. 7. Single-family homes
8. 8. Self-contained apartments

Benefits of Short-term Rental Investments

• Higher returns potential

A major advantage of short-term rentals is that homeowners are allowed to set their prices based on demand, events, and season. This affords them the luxury of increasing the rates to maximize their rental returns. Take for instance, during popular traveling times, a Landlord has the freedom to raise the nightly rate for a couple of nights which might not be possible in long-term rent.

• Flexibility

Short-term rental offers great flexibility to the property owner. It gives owners the freedom to use their property however they want even to the extent of blocking off interested guests whenever they want to use the property.

• Property maintenance and security

Short-term rentals help keep home equipment up and running. It also helps reduce damages such as wear and tear to the property since tenants occupy the home for a brief period. In a way, short-term rentals help protect your property from being breached while you are away.

• Minimal Commitment

Tenants come and go which helps avoid unnecessary commitments. In short-term rentals, guests spend a brief time before moving out and making way for other guests whenever the period you choose.

• Online platforms

Online tools such as Airbnb and VBRO make it easier and faster for property managers to advertise, find, and manage prospective tenants for their property.

• Tax breaks and deductions

Short-term rentals are immune to certain excessive taxes that are imposed on long-term managers. In some places, the local authority has reduced the imposed tax significantly to assist the sharing economy.