Short-term rentals are popular on apps like AirBnb and VRBO. Short-term rentals are fully furnished properties rented out for a few days to a few months. In the right areas, they can be very profitable. They offer rental managers an opportunity to expand their operations and earn a new stream of revenue. However, they can be cumbersome to manage in some cases, so they are not right for everyone. If you're considering adding short-term rentals, here's what you need to know.

What Are The Pros And Cons Of Short-Term Rentals

Short-term rentals offer both benefits and disadvantages. Here are the pros and cons to think about when considering offering short-term rentals:

Pros Of Short Term Rentals

  • Higher Rental Income Potential: Short-term rentals often generate more income than long-term leases because you can charge a higher nightly rate. During peak seasons, you can significantly boost your earnings.
  • Management Flexibility: You can block off dates for personal use or maintenance without the constraints of long-term leases.
  • Build Community: Hosting guests from various backgrounds and locations can be enriching and add to your community culture.

Cons Of Short Term Rentals

  • Increased Management Effort: Managing frequent guest turnover requires significant time and effort. You'll add tasks like cleaning, maintenance, and addressing guest inquiries and issues promptly.
  • Potential For Rental Damage: With a high turnover rate, the risk of wear and tear or significant damage to the rental increases. Some guests may not treat the rental with the same care as long-term renters would.
  • Regulatory Challenges: Many areas have strict regulations and zoning laws that limit or prohibit short-term rentals. Legal requirements can be complicated and may involve obtaining local permits or licenses.

How To Get Started With A Short-Term Rental

If you think short-term rentals are right for you, here's how to get started. First, you need to check local laws and regulations concerning short-term rentals to ensure compliance. Next, make sure you are in an area with demand for short-term rentals, and if you are, who is creating the demand? Some short-term rentals cater to tourists, while others cater to business travelers. Then, you'll need to research local rental rates and consider seasonal fluctuations to develop a solid pricing strategy. Finally, you'll need to develop a listing and marketing strategy to attract short-term renters.

Short-term rentals are an excellent opportunity for the right rental manager. If you're considering short-term rentals, contact Occupancy Solutions. Since 1986, we've been helping rental managers and owners develop strategies to increase occupancy rates. We'll help you optimize your rental for the most revenue possible, whether short-term rentals or an even more lucrative option.