You may have experienced visiting a new place for a vacation or going somewhere on a business trip. Both of these instances require you to find a place for lodging and accommodation. As a visitor, you may have experienced renting an apartment to stay in for some time.
Short-term rentals have become extremely common these days as they are a good source of income, given the demand for lodging. In short-term rentals, property owners rent out their apartments or condominiums to visitors for a short period. The time is dependent on the owner but can be through different rates, the most common ones being nightly and weekly.
Typically, short term rentals are a common choice for tourists, people engaged in business, or even locals who are interested in a staycation. Vacation rentals, in particular, have become more popular because of the affordability and privacy offered by properties. As a property owner, there are also many advantages to choosing to rent out your property for a short time.
Advantages of Short Term Rentals
If you have any property that you are not always using, you may want to consider renting it out for short periods! Here are a few advantages of such a venture.
There is a lot of flexibility in short-term rentals because you get to decide when exactly you want to rent out your property and when not to.
As a property owner, you can easily block off essential dates when you may want to use your rental. The same can be done with free days so you know when you can have people rent your place. Because of this flexibility, you are still able to utilize your property if you wish to, but at the same time earn some income on the side.
2. Source of Income
Given the growing popularity of short term rentals, property owners can earn from people renting your place. You are also able to adjust prices based on factors such as demand, location, time of the year, and many others.
For instance, demand may be particularly high if you are renting out a place in a city where a popular event will take place. In these types of situations, you can get generous earnings from rental fees.
It is also crucial to consider the location of your property before deciding to rent it out. For example, a place with few hotel accommodations may be ideal for short term rentals since visitors need a place to stay. At times, larger groups may also be inclined to rent a property so they can stay in one place and split the costs.
3. Diversified Risk
When you choose to rent out your property for a short period, you get multiple and different tenants every time. Because of this, any potential risk will be diversified and not solely dependent on a single tenant.
For instance, if any circumstance prevents a tenant from paying rent, the impact will not be as significant since you are only renting your property for a short period.
With the advantages of renting out properties for a short time in Airbnb, there has also been a growing trend for property investors. For them, choosing whether to do short term or long term rentals has also become a decision to take into consideration.
Naturally, property investors or owners would have to think of different things before deciding. Nonetheless, there is no doubt that the industry for short term rental services has grown at a promising rate.