The popularity of short-term rentals has risen greatly over the last few years. As a Salt Lake City rental property owner, you may be reflecting on what to do in connection with buying or converting one of your properties to a short-term rental. Conceding that short-term rentals are a good option for some, other investors may find that the amount of work involved isn’t that worth it. Before you go ahead, it’s an excellent idea first to examine both the pros and cons of owning a short-term rental property.
Perhaps, the number one advantage to owning a short-term rental property is the high probability of increased rental income. Short-term rentals commonly rent for more per day than a long-term rental would. So if it happens that you can manage to keep your property rented out, you could make so much more each month than you’d get from a long-term lease. Short-term rentals let you just easily increase prices at times of high demand, helping you to maximize your profits.
One great benefit of owning a short-term rental is that it presents a lot of flexibility. Subject to how you work it, you could be renting your property a week at a time or for several months. If your rental property is in an appealing vacation area, you could advertise any vacancies as a perfect chance for a personal holiday. You can similarly just arrange to have your property on rental platforms like Airbnb, which means you never have to handle leases. You can also easily remove your listing from those sites at any time should you choose then to change your property back to a long-term rental.
However, there are a few drawbacks to owning a short-term rental. Granted there is a great likelihood for higher income, at the same time, that income is a lot less stable. Some short-term rentals experience seasonal fluctuation, which means your property might be sitting empty much more times than you would like. Despite the fact that good marketing and creativity might help you avoid this, it’s necessary to bring to mind that even your best efforts may not be enough. Short-term rentals are very sensitive to economic conditions, and economic downturns typically bring about less demand. For instance, you may have realized that the short-term rental market has truly suffered a lot this year due to stay-at-home orders and travel restrictions caused by the pandemic.
One other crucial snag of short-term rentals to always remember is that you will have higher costs. Preparing a short-term rental could mean definitely having to furnish and stock it with essentials. If you need your property to be competitive, it will need to have good furnishings and décor. You’ll furthermore need to be sure that your tenants have things like linens, toilet paper, pots and pans, and more. These items will need to be re-stocked between tenants, which can really be adding up after some time.
There will similarly be more cleaning and maintenance required for a short-term rental. If you’re fulfilling it yourself, keeping the place ready for the next tenant will take a little more of your time. But hiring someone to conduct it for you could get rather expensive, especially if your property is in high demand. It’s essential to always see to it that the place is being completely cleaned between tenants and that crucial maintenance and repairs are being done correctly and precisely. Neglecting to complete this could give rise to destructive online reviews and fewer bookings by and by.
One last point, it’s principal to verify state and local regulations on short-term rentals. Most cities have put together strict regulations preventing short-term rentals in some areas, and so have plenty of homeowners’ associations. Owing to the fact restrictions will be different from place to place – and even from neighborhood to neighborhood – it’s essential to conscientiously do your research just before buying or converting a property to use as a short-term rental.
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