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Short Term Rental vs. Long Term Rental

Want to quickly and consistantly make an extra income? Rent out your home, or your investment property! The question that often comes to the table is: “Which is more profitable – Short term rental, or Long term rental?” Does the length of rental commitment matter to overall income? Wouldn’t a long-term renter mean less stress? Won’t there be a shortage of short term renters because of availability, seasonal fluctuations, etc.? How can you learn the pros and cons for each rental style? Let’s have a chat, shall we?

A Common Misconception

Vacationers and Business travelers love Short Term Rentals!

Short Term Rental is a great option for vacationers and business travelers.

To uncover the facts, you must look at these two options below the surface. Financially and economical focus is essential. On the surface, long term rental seems more sound. It also seems like a whole lot less work. You are bringing in one client, estimating a rental time of 5 years on average, so the idea is that you will bring in more money. Hmmm, why is this a misconception? Let’s look a little deeper into Short Term Rental to uncover the answer.

Short Term Rental – The New Normal

A short term rental is classified as a rental occupied by a single client for 6 months or less. A short term lease is especially beneficial to traveling business clients and vacationers. Short term rentals are becoming the norm – the days of a hotel as the only away-from-home option are long gone!  The quiet atmosphere and comfort of a home over the stress of a hotel can’t be beat. With today’s open source traveling websites like AirBNB, people worldwide who are looking for a place to stay for the summer, winter, or any other short holiday, can easily find short term rental options.

Financial Benefits of Short Term Rental Uncovered

Short Term Rentals are more comfortable than a hotel!

Short Term Rentals are more comfortable than a hotel!

So, using your property as a short term rental as opposed to a long term rental usually IS more profitable! Why? First, owners can charge a higher nightly rate (translating to a higher monthly rate) than they would with a long term rental. It is likely that a single 3-day weekend could bring in the equivilent of an entire month’s rent in the ‘in season’ in any given city. Renting property can be compared to shopping at Costco: a customer who buys nights in bulk gets a discount, ( as in a 2 -year tenant ) but a customer who buys only a few nights, ( the short term renter ) pays a higher price. The long-term tenant will expect a lower monthly rent charge because he is committing. He is offering a sense of security to the property owners. A tenant who is renting a home for the summer, however, will pay more for the same exact property. He is paying for comfort, convenience and atmosphere, and because it’s short term, it’s only making a dent in his pocket. Additionally, if rent prices are on the rise in the economy, short term rentals can charge a higher rent price with each new lease. All these factors added together insure that the short term rental provides the homeowner with the highest income potential.

So then, back to our initial question: Want to quickly and consistantly make an extra income? It looks like Short Term Rental is the way to go!

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Booking Your Short Term Rental in 3 Easy Steps

Booking Your Short Term Rental in 3 Easy Steps

You’ve discovered you have a GREAT cash cow – a.k.a. a condo! You’ve decided Short Term Rental is the route for you to take to generate a side income. Now what? How do you rent out your space? Do you advertise? Where do you find guests? Here are 3 easy steps for booking your Short Term Rental.

Step 1 – Consult with a Property Manager

Booking your Short Term Rental is our specialty!

Book your Short Term Rental easily – we can show you how!

Want to be a hands-off owner? A property manager can take over and do all the ‘dirty work’ for you from A-Z, and just send you a check each month. If you are the quintessential ‘do-it-yourselfer’, a property manager can be your personal consultant, giving you support and guidance along the way. They teach you to market, manage and wrap up with each guest. You decide on the property manager’s level of involvement. Whether you want all or none, you WILL want at least a consultation. It’s a big, involved process to get started in, and although it can be very profitable, if done incorrectly Short Term Rental could be a huge expense.

Step 2 – Create a Marketing Management Plan

A Great Marketing Management Plan Includes:

  • Prepare the home
  • Photograph the home
  • Create a Listing
  • Connect your listing to listing websites
  • Monitor, optimize, and improve your listings as necessary
  • Respond to guest inquiries in a timely manner across all marketing platforms
  • Supervise and synchronize listing calendars
  • Continually adjust listing price dependent on seasons and special events
  • Screen potential guests to stay in accommodation
  • Provide off-site guest support as needed
  • Schedule necessary vendors (i.e. cleaning, repairs, etc.)
  • Monthly accounting records (i.e. income, expenses, and profit)

Step 3 – Welcome Your Guest!

Book your Short Term Rental with a pool easily!

A Short Term Rental with a pool is a hot commodity!

Is welcoming your guest really a part of the booking process? YES! If your guest gets a big happy welcome, chances are he will enjoy his stay all the more. A great start promotes a great stay, and a great stay promotes a return guest! Whether you greet your guest personally with pleasant conversation and a home tour, or have a gift basket on the counter and flowers on the table, making sure his first impression is a good one is essential!

Perhaps in ticking off items on our list, you are thinking, ‘just wait one cotton-pickin’ over-worked minute!’. If that’s the case, know that Short Term Rental Manager specializes in taking your property from step 1, to cash in your hand!

Read more abuot why Short Term Rental Manager might be a great shoice in this New York Times article discussing Property Managers.

Easy a pie for us, and no sweat for you! Let’s get started today!

 

 

 

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3 Reasons Your Short Term Rental Needs a Property Manager!

You’ve DONE it! You have decided to use your home for Short Term Rental! It’s just the technicalities that are left now…finding some renters, deciding what to charge, and getting your home ready! Your entrepreneurial side says, “I can DO THIS MYSELF!”. On the other hand, there’s a voice in your ear saying, “There goes your LIFE! You’ll have NO free time! Think of the headaches! Hire someone to do it for you!”. What to do? Well, here are 3 reasons your Short Term Rental needs a Property Manager!

A Property Manager Finds Renters

One specialty of Property Managers is Finding the perfect tenant for your home!

One specialty of Property Managers is Finding the perfect tenant for your home!

Where would you find a trusted renter for your home? On Craig’s List? Yikes! A Short Term Rental Property Manager has resources that you don’t have, which will ensure that you find quality tenants. Most Managers collaborate with other companies to help you get exactly the right tenant for your own little “Bed and Breakfast”, and when he is discovered, we help you take care of the paperwork too!

How DO you decide what to charge?

A Short Term Property Manager will analyze your home. He will take into account your square footage, special features and details, local area rental rates, and other neighborhood variables. He will give you the best price to charge for your home depending on the season, local amenities and other important factors. Likewise, he will also be honest and tell you if your expectations are way out of range.

Preparing your home inside and out for Short Term Rental is key!

Preparing your home inside and out for Short Term Rental is key!

What do I do to prepare my home?

Do you have property that you want to make a short term rental but not quite sure how to get it rolling? A Short Term Rental Property Manager has Setup Services to get you on the right track. At STRM, we give you information on what to do with your personal property while renting out your home. We also provide you with a suggested checklist of items that will ensure your rental has what your guests need to have a fabulous stay. We can even stage the home for you, and take professional photos for the most appealing first impression!

These are just a few of the many benefits Short Term Rental Property Managers provide to guarantee you a successful experience renting out your home. Check out this additional article from Zillow to help you make your decision!

 

Want to rent just a room of your home? Be sure to join us next time when we will explore the single room rental option!

 

 

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Why Short Term Rentals?

Why Short Term Rentals?

Owning a rental property has many advantages. Short Term Rental, as opposed to traditional long term rental, is a way of maximizing your property to bring in the most return for your dollar. Here are three compelling reasons to check out Why Short Term Rentals are a great option.

Higher Rental Revenue 

Your 'home away from home'.

Why Short Term Rentals? They are a great ‘home away from home’!

Renting your home for a short period of time – usually less than 6 months – creates higher average nightly rates than long-term rental. Higher nightly rates equal higher monthly rates. A tenant paying for a summer rental will pay a higher 1 month fee, as compared to a long-term renter. It’s one month! Vacations are special! It’s not for the next 10 years. Read about a great short term rental experiment here.

Why Short Term Rentals Allow More Income with Less Use 

Book your home solid for 6 months and make as much as a year of long term renting! Also on the plus side, Short Term Rental is less wear and tear on the home. These renters are out and about more. Additionally, you have the breaks in between renters to clean and check the home, make small repairs, and notice little issues before they become big problems!

You Still Have an Option to Use Your Own Property 

Have a condo on the beach? You can schedule yourself in between clients, and squeeze in a week of sun and surf! Maybe you travel for work, and want to have a home base one week out of the month. You can schedule that in as a reservation at your property, keep a locked closet with your things in it, and have the convenience of a home away from home! That’s a great perk!

With the higher rental rates you’ll command, the lesser wear and tear on your home, and the option to benefit by using your property when wanted or needed, the advantages of Short Term Rental are definately worth looking into!