MAKING MONEY WITH SHORT-TERM RENTALS

Written By Jennifer Wilson

What is a Short-Term Rental?

A short-term rental is a furnished rental property that rents either by the night or the month rather than through a year-long lease. These properties cater typically to renters looking for temporary accommodations or more commonly travelers.

Types of Short-Term Rentals

  • Tiny House/ ADU
  • Vacation Rentals
  • Private rooms in a primary residence
  • Luxury tents or Travel Trailers

 

What are the Pros and Cons of Short-Term Rentals

Pros

  • You can earn a much higher nightly rate than long-term rentals
  • Flexibility. Rent it out when you want and enjoy if yourself when you don’t
  • Numerous Tax Breaks and deductions
  • Pricing can be adjusted seasonally
  • Ability to be proactive with maintenance/less wear and tear

Cons

  • Inconsistent income; especially in off season
  • More work than long term rentals
  • Greater risk of damage or wear & tear
  • Limited ability to screen tenants
  • Volatile regulations from cities or HOA’s
  • Operation costs can be higher such as utilities, furnishing, cleaning fees and possibly paying property management companies

What are some things to look for when buying a short-term rental?

Make sure you check all city and HOA ordinances to confirm they allow short term rentals. Nothing worse than purchasing a property and finding out it doesn’t allow short-term rentals. Check if your city requires a business licenses or permit.

You also want to find out what the property could rent for if you need to change it to a long term rental at any point. Be mindful of what you are paying for the property and the current market in that city. You want to be aware of what the home could resell for in case you choose not to have a short-term rental anymore.

Hire a saavy Realtor in that area that understands the market, can show a track record of assisting clients purchase short-term rentals. If you have any more questions, please reach out or you can view more information by visiting my YOUTUBE Channel.

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