Short-term rentals are getting very popular these days. As a Lawrenceville rental property owner, you might have considered buying or converting one of your properties to a short-term rental. Some are active proponents for short-term rentals, while other investors think it is not worth it. Before making any move, do your homework and examine the pros and cons of owning a short-term rental property.
A short-term rental property typically commands a higher rental price so this is the main reason many property owners choose this method. On a daily average, short term rentals gain more than long term rental. Your property can earn more than a long-term lease, just as long as tenants are lining up. Short-term rentals let you increase prices during times of high demand, allowing you to maximize your profits.
Owning a short-term rental equals flexibility and that is a great advantage. It’s entirely up to you whether you want your property rented a week at a time or for several months. If your rental property is in a nice vacation spot, you can take advantage of vacancies and use it for your personal getaway. Set up your property on rental platforms like Airbnb so you no longer have to deal with leases. Switching your property back to a long-term lease can be done anytime by removing your listing from these sites.
On the other side of the coin, there are a few drawbacks to owning a short-term rental. Although it promises high rewards, these rewards may be less stable. Most short-term rentals experience seasonal fluctuation and this means that your property could be sitting empty for a long time. While marketing and bright ideas can prevent this, sometimes, you just can’t win. Short-term rentals are very sensitive to economic conditions, and economic downturns often result in less demand. For example, you may have noticed that the short-term rental market has suffered a lot this year due to stay-at-home orders and travel restrictions caused by the pandemic.
One more disadvantage of short-term rentals is the higher costs that come with them. Furnishing and buying essentials is part of the preparation of a short-term rental. It goes without saying that your property needs to be competitive so you would further invest in expensive furnishings and décor. Your tenants should be provided with things like linens, toilet paper, pots and pans, and more. These items will need to be re-stocked between tenants, which translates to a higher expense over a period of time.
For a short-term rental, there will be more cleaning and maintenance required. Plus, if you’re doing all the preparations for your next tenant, this will require a lot of your time and effort. You may choose to hire someone but this could add to your expenses especially if your property is in high demand. It is extremely important that the place should be cleaned between tenants and maintenance and that repairs are done on time. Because if you don’t, you could get bad online reviews. This is a thing we desperately want to avoid as it results in fewer bookings in the future.
Finally, it’s best to be guided accordingly so it’s important to check state and local regulations on short-term rentals. There are cities that have strict regulations and homeowners’ associations that do not allow short-term rentals. Restrictions vary greatly between places so it is important to do your research before buying a property if you intend to use it for short-term use.
If a longer-term Lawrenceville rental sounds more stable and profitable for you, contact Real Property Management Executives Greater Atlanta. You can contact us online or call us at 678-504-8580.
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