Short-term rental properties are becoming more and more popular in the United States. In 2022, there were over 1.38 million short-term listings available in the United States alone.
If you have been seeing the growth of this market, you may be tempted to get a property of your own to rent out. However, you may not know how to operate this property to its maximum potential.
That is where a short-term rental management company comes in.
What are the pros and cons of short-term property management? Read on to find out about both.
Let's start by taking a look at the pros of taking the short-term rental route. For starters, you are going to earn a lot more money per night on your property.
The reason why this is the case is because property owners typically charge more due to insecurity. They have no guarantee that the other nights are going to get filled. Plus, there are typically higher costs to turn the property over to the next guest quickly.
All of this has to be covered and thus, people end up paying more for shorter stays. Property owners tend to make about 46% more on their nightly rate for short stays compared to those that let guests stay for longer than a month.
As a result, if you have the right property management company behind you that can help fill as many nights as possible, you could end up making a lot more money off of your property this way.
Plus, you can be more flexible about how you rent out this property. Let's say that you offer a two-bedroom condo as a place to rent. For shorter stays, you can split this property in half if needed and offer one bedroom to each guest.
Now, let's get to the downsides of going the short-term rental route. As mentioned above, it is going to cost more.
That is because you have to dedicate more resources to advertising your property along with maintaining your property. One example could be hiring a cleaning crew.
You do not need one nearly as often for long-term rentals. However, you may need one multiple times a week if you are renting your property out to short-term guests.
There is also the fact that not every town or city is very friendly towards this type of property rental. Depending on where your property is located, there may be more red tape and it could even technically be illegal there.
Look into the costs of these things before moving forward with this.
Get Short-Term Rental Management
These are a few of the pros and cons when considering a short-term rental.
The main pros are that you are maximizing rental income if you operate your short-term rental property the right way and there is more flexibility to do this. However, you have to consider that higher operating expenses are going this route, plus there could be more legal red tape.
Luckily, a short-term rental management company can help you with all of this. Click here to find out more.