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Pros and Cons of a Short-Term Spring Valley Rental Property

Spring Valley Tenants Arriving at an AirBnBThe popularity of short-term rentals has been rapidly increasing over the past few years. As a Spring Valley rental property owner, you could be thinking about buying or converting one of your properties to a short-term rental. Before you do, it’s an excellent idea first to probe both the pros and cons of owning a short-term rental property. While short-term rentals are a good fit for some, other investors may find that the magnitude of work involved isn’t worth it.

Maybe the number one advantage to owning a short-term rental property is the potential for higher rental income. Short-term rentals usually rent for more per day than a long-term rental would. So, if you can keep your property rented out, you could make pretty much more each month than you would get from a long-term lease. Short-term rentals let you increase prices at times of high demand, letting you maximize your profits.

An additional great benefit of owning a short-term rental is that it presents a lot of flexibility. Dependent on how you go about it, you could be renting your property a week at a time or for several months. If your rental property is in a nice vacation spot, you could make use of any vacancies as an opportunity for a personal getaway. You can likewise effortlessly set your property upon rental platforms like Airbnb, and that means never dealing with leases. You may also remove your listing from those sites at any time should you need to convert your property back to a long-term rental.

And on the other hand, there are a few drawbacks to owning a short-term rental. While there is frequently a good potential for higher income, at the same time, that income is a lot less stable. Most short-term rentals feel seasonal fluctuation, which means your property might be vacant for a lot more than you would like. Whilst excellent marketing and creativity might help you avoid this, it’s essential to remember that even your best attempts may not be enough. Short-term rentals are very vulnerable to economic conditions, and economic downturns often result in less demand.

An important drawback of short-term rentals to bear in mind is that you will have higher costs. Preparing a short-term rental could mean that you need to furnish it and stock it with essentials. If you want your property to be competitive, it will need to have wonderful furnishings and décor. You will also need to make sure that your tenants have things like linens, toilet paper, pots and pans, and more. These items will need to be re-stocked between tenants, which can start to get together over time.

There will also be more cleaning and maintenance required for a short-term rental. If you’re doing it yourself, getting the place ready for the next tenant will take quite a bit of your time. But hiring someone to do it for you could get pricey, especially if your property is in high demand. It’s important to guarantee that the place is being thoroughly cleaned between tenants and that necessary maintenance and repairs are being done correctly and quickly. Failing to do so could give rise to bad online reviews and fewer bookings in the future.

Lastly, it’s important to check state and local regulations on short-term rentals. Some cities have built strict regulations prohibiting short-term rentals in some areas, and so have many homeowners’ associations. Because restrictions will vary from place to place – and even from neighborhood to neighborhood – it’s important to do your research before buying or converting a property to use as a short-term rental.

Need help managing your current rental property? Give Real Property Management DePenn a call at 866-820-9913. Or conveniently contact us online.

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