The popularity of short-term rentals has increased exponentially over the last few years. As a Johns Creek rental property owner, you may be thinking about buying or converting one of your properties to a short-term rental. Before you do, it’s a great idea first to examine 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 amount of work required 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 typically rent for more per day than a long-term rental would. Therefore, if you can keep your property rented out, you could make quite a bit more each month than you’d get from a long-term lease. Short-term rentals let you increase prices at times of high demand, letting you maximize your profits.
Another great benefit of owning a short-term rental is that it extends a lot of flexibility. Depending 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 apply for any vacancies as an opportunity for a personal getaway. You can also easily set your property upon rental platforms like Airbnb, which means never dealing with leases. You can also remove your listing from those sites at any time should you want to transform your property back to a long-term rental.
Then again, there are a few drawbacks to owning a short-term rental. While there is often a good potential for higher income, together, that income is a lot less stable. Most short-term rentals experience seasonal fluctuation, which means that your property might be sitting empty a lot more than you would like. While good marketing and creativity could help you avoid this, it is important to remember that even your best attempts may not be enough. Short-term rentals are very sensitive to economic conditions, and economic downturns often result in less demand.
Another crucial disadvantage of short-term rentals to keep in mind is that you will have higher costs. Preparing a short-term rental could mean needing to furnish it and stock it with essentials. If you want your property to be competitive, it will need to have nice furnishings and décor. You’ll 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 add up over time.
There will also be more cleaning and maintenance required for a short-term rental. Unless you do 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, particularly if your property is in high demand. It’s critical 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 result in 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 created 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 North Point a call at 404-341-2102. Or conveniently contact us online.
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