The astonishing popularity of short-term rentals has broadened dramatically over the last few years. As an Ocala rental property owner, you may be seriously evaluating buying or converting one of your properties to a short-term rental. Even supposing short-term rentals are a good deal for some, other investors may find that the amount of work involved isn’t worth the trouble. Before you move forward, it’s a brilliant plan first to examine both the pros and cons of owning a short-term rental property.
It’s likely the number one advantage to owning a short-term rental property is the greater likelihood of an above-average rental income. Short-term rentals typically rent for more per day than a long-term rental would. So if, in any case, you can always keep your property rented out, you could surely earn more each month than you’d get from a long-term lease. Short-term rentals let you comfortably raise prices during times of high demand, letting you maximize your profits.
One other favored benefit of owning a short-term rental is that it provides a lot of flexibility. According to how you handle it, you could be renting your property a week at a time or for several months. If your rental property is in a good vacation area, you could offer any vacancies as a perfect opportunity for a personal holiday escape. You can, in addition, just launch your property on rental platforms like Airbnb, which definitely means never taking care of leases. You can, in the same way, remove your listing from those sites at any time should you like to return your property back to a long-term rental.
On the flip side, there are a few drawbacks to owning a short-term rental. Conceding that there is, oftentimes, a really good chance for a significantly higher income, at the same time, that income is a lot less stable. Many short-term rentals experience seasonal fluctuation, which means your property might be sitting empty way more times than you would like. Though it’s true that good marketing and creativity might help you avoid this, it’s crucial to always keep in mind that even your best efforts may not be enough. Short-term rentals are very sensitive to economic conditions, and economic downturns commonly give rise to less demand. For instance, you may have recognized that the short-term rental market has gone through and suffered a lot this year due to stay-at-home orders and travel restrictions caused by the pandemic.
One also important negative point on short-term rentals to always remember is that you will have higher costs. Preparing a short-term rental could mean being obliged to furnish and stock it with essentials. If you expect your property to be competitive, it will need to have the proper furnishings and décor. Besides, you’ll need to totally make certain that your tenants have things like linens, toilet paper, pots and pans, and more. These items will really need to be re-stocked between tenants, which can rapidly add up over time.
On top of that, there will also be more cleaning and maintenance required for a short-term rental. If you’re working it yourself, striving to make the place ready for the next tenant will take a lot of your time. But hiring someone to fulfill it for you could get expensive fast especially if your property is in high demand. It’s important to make sure that the place is being properly cleaned between tenants and that important maintenance and repairs are being done correctly and exactly on time. Neglecting to achieve that could bring about negative online reviews and fewer bookings eventually.
One last thing, it’s essential to conscientiously go over state and local regulations on short-term rentals. Various cities have formulated strict regulations outlawing short-term rentals in some areas, and so have most homeowners’ associations. Since restrictions will indeed differ from place to place – and even from neighborhood to neighborhood – it’s principal to do your research just prior to buying or converting a property to use as a short-term rental.
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