Airbnb and Short-Term Rentals: What Property Owners Need to Know – Birds on the Blog

Airbnb and Short-Term Rentals: What Property Owners Need to Know

As the whole world has slowly but steadily become one huge global place, more and more people travel. This trend has prompted the rise and popularity of short-term rentals advertised on Airbnb and other similar platforms. Owning such a property you can rent for the short term can be pretty lucrative. However, it comes with certain challenges you need to be prepared for. Keep reading to learn more about Airbnb and short-term rentals with a focus on what property owners need to know.

We will start by explaining what precisely short-term rental is and discuss its crucial aspects so you can decide whether it’s right for you. Then we will move to advantages, which include more money, flexibility and tax benefits. We will also mention some disadvantages, including higher vacancy rates, maintenance costs and more effort. And finally, we will offer actionable advice on how to manage a short-term rental efficiently.

What is a short-term rental, and is it right for you?

People most often use short-term rentals either on vacations or business trips. Short-term rentals imply stays from one or several nights to a few weeks, at the most 30 days. Each country or area regulates the exact number of nights for staying. It is a residential property, or a unit rented out to guests. They can refer to single rooms, single or multi-family units.

Owning and renting a property short-term implies being active in managing it. You should consider whether you have time and will for that, whether you are reachable, whether you live nearby, whether your property is suitable, and so on. If you decide that a short-term rental is right for you, keep reading to learn more about the advantages and disadvantages and how to manage it efficiently.

Advantages of short-term rentals

More money

Renting rooms short-term has been proven to make more monthly money than long-term. People are willing to pay more for such rentals, so they expect the service to be exceptional and the property furnished and well-maintained. These things affect the running costs, making it necessary for you to charge more.

Flexibility

If you own a property that you rent short-term and away from where you live, you can also use it for your private visits and vacations. Just make sure to put it on the calendar. Quite often, the reason for short-term rentals is a second home that is vacant throughout most of the year. So, this is a great way to make it useful and earn money from it. In this case, it might be hard or impossible to manage it, so you would need to hire a professional local real estate agency, such as Curtis Associates to manage your short-term renstal.

Tax benefits
Moreover, you can get certain tax benefits by owning a short-term rental property – they are usually the same as owning a rental property in general.

Disadvantages of short-term rentals

Higher vacancy rates

Besides the advantages, it has certain disadvantages, as with everything else. One of them is potentially higher vacancy rates. Depending on where your property is located, it can only be booked during a season. For instance, a ski lodge will probably be fully booked in winter. They can be costly to you, as you have running costs but no income.

Higher maintenance costs

What’s more, maintenance costs related to a short-term rental are higher than long-term rentals. For instance, there are cleaning costs after each visitor.

More effort
Renting a short-term property also means that you, as the homeowner, must devote more time to it. Also, more effort is needed from your side.

How to manage your short-term rental effectively

Offer excellent service – it is what people expect. Keep in mind that they will write reviews and rate you online. The whole world sees this, so the better the reviews, the more stays you’ll have in future.

Keep it clean – people hate when a property they opt to stay in is poorly maintained, old, dirty and dingy. Make sure to clean it thoroughly after each visitor, and add some air fresheners and flowers as such details matter.

Charge competitive rates – when it comes to pricing, your rates should be competitive. You should research the market and see the ideal price for your property. Consider the location, the size, how equipped it is, and whether it’s fully furnished and modern.

Be energy-efficient – another crucial aspect is to be energy-efficient. Adapt your property to align with energical efficiency, as people are becoming more conscious about preserving our planet. Plus, your costs will decrease.

Hopefully, this post helps you understand the concept of short-term rentals better. Consider all the aspects before you decide whether this way of passively earning money is right for you.

AUTHOR: JESS COOPER

 

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