Short-term rentals, which are rental units that are rented out by vacationers who are looking for a great place to stay while away from home, offer a number of benefits to investors. If you are trying to decide whether or not to add short-term rentals to your portfolio, consider these five benefits that this type of investment has to offer.
Benefit #1: Solid Return on Investment
Short-term rentals have the potential to offer a solid return on your investment. To guarantee the best returns, be sure to analyze the rental history of the property for the past few years while also considering the rates, both off-season and peak season rates, compared to the monthly expenses. Obviously, you want a property with a high annual occupancy percentage. The best investment opportunities will also have plenty of pre-bookings in pace, which is all money that will come to you as soon as you close on the property.
Benefit #2: Great Marketability
As word continues to spread, a growing number of vacationers are choosing to rent a vacation home rather than stay at a hotel. The reasons are quite simple. First, the per night rate of a rental home is typically far less expensive than the cost of booking a night at a hotel. In addition, renting a home offers the potential of saving additional money by making it possible to prepare meals in the home rather than having to eat out for every meal. Of course, rental properties also offer more space to spread out when compared to hotel rooms, which is another big perk to larger groups and families.
Benefit #3: Ready to Go
In most cases, rental properties are available and ready to be put on the market as a short-term rental option as soon as you purchase them. This is particularly true if the property has already been being used as a short-term rental property. In this case, the property is likely to have already been properly maintained and all furnishings are included, which means you don’t have to worry about getting the property ready. All you have to do is close on the deal and then let the money start to come in.
Benefit #4: Cut Your Vacation Costs
In addition to having an additional property in your investment portfolio from which you can collect money, owning a short-term rental property also gives you a great place to go on vacation at any time. You have the option to book a personal stay at your property at whatever time best suits your schedule and you don’t have to pay any additional costs for lodging. Pick a location that you love and your short-term rental also becomes your vacation home!
Benefit #5: Worry-Free Investing
Best of all, you can make your short-term rental worry-free by simply hiring a property management company to handle all of the ins-and-outs of caring for your property. A property management company can maintain your property while also marketing it, collecting rent and servicing your guests. All you have to do is sit back and collect the extra income that a short-term rental provides!