The rise of short-term rentals has kept on growing for the past few years. As a Thousand Oaks rental property owner, there’s a good chance you may be thinking about purchasing or converting one of your properties to a short-term rental. However, before you do that, it might be a wise idea to go over both the pros and cons of having a short-term rental property. Quite often short-term rentals are an appropriate fit for many, however, some other investors may come to realize that the amount of work needed isn’t worth it.
Probably the biggest benefit to having a short-term rental property is the possibility for higher rental income. Short-term rentals tend to rent for more per day than a long-term rental typically would. By keeping your property rented out, you could easily make quite a bit each month compared to a long-term lease. During the high season, short-term rentals let you increase prices, which allows you to make the most of your profits.
An additional advantage of possessing a short-term rental is the added flexibility. Subject to what you do, you may be renting your property a week here and there or for several months. Should your rental property be in an attractive holiday spot, you could use any vacancies as an opportunity for a special getaway. One option to consider is to set your property upon rental platforms like Airbnb. That means you never have to deal with leases. If you want to convert your property back to a long-term rental, you can easily remove your listing from those sites at any time.
All the same, there are a few drawbacks to possessing a short-term rental. Despite the fact that the likelihood for bigger income is high, it can simultaneously mean that the income is a lot less stable. Nearly all short-term rentals suffer seasonal fluctuation, which means your property may be left empty more than you would want it to be. While on-trend marketing and a healthy dose of creativity may help you evade this, it’s crucial to never forget that no matter what you do, it may not be enough. Short-term rentals are very vulnerable to economic conditions, and economic downturns are often a cause for less demand.
An additional crucial weakness of short-term rentals to recall is that you will have bigger expenses. Getting a short-term rental ready usually means being obliged to provide furniture and furnishing it with all the essentials. Should you want your property to be fairly competitive, it is necessary for it to have attractive furnishings and décor. Remember to make sure that your tenants have all the things they will need like linens, toilet paper, pots and pans, and more. These items ought to be replenished between tenants and that means it will add up over time.
Also, there will be more cleaning and maintenance entailed for a short-term rental. If you have to do it yourself, making the property ready for a subsequent tenant will probably take a bit of your time. Then again, hiring a company or someone to do it for you could get costly, especially if your property is rented out frequently. It’s critical to ensure that the place is being cleaned from top to bottom between tenants and that essential maintenance and repairs are completed properly and swiftly. Not being able to do so just might result in adverse online reviews and a smaller quantity of bookings in the future.
In conclusion, it’s imperative to confirm existing state and local regulations on short-term rentals. Some towns and cities have created strict regulations prohibiting short-term rentals in some places, and there are homeowners’ associations that are doing the same. On account of restrictions varying from town to town – and even from neighborhood to neighborhood – it’s crucial to do your research before paying for or altering a property to use as a short-term rental.
Need help managing your current rental property? Give Real Property Management Limitless a call at 805-702-7800. Or conveniently contact us online.
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