Should You Invest in a Vacation or Short Term Rental?
Short term and vacation rentals can be a great investment, they create an annual income, have the potential to appreciate in value and typically during have a higher income than a traditional long term lease.
Before investing you will need to decide if you're going to self-manage or hire a property management company. If you live locally and have the resources and time, self managing could be a good option, but most owners opt to have hire a professional property manager that specializes in the short term rentals market. The benefits to hiring a management company is that they have the resources to assist with arrival, departure, cleaning, repairs and rent collections, while providing an income stream by building positive reviews.
As with most rental or investment properties, it’s important to choose the right location, location, location to ensure a steady stream of renters. You will also need to budget for unexpected repairs or damage, especially with the deposit being made with a credit card, these can be difficult to collect for when there is damage done to the home.
Advertising on platforms like Airbnb, VRBO and HomeAway offer visitors the ability to interact directly with the owner which helps reduce costs and investor-owners, can negotiate directly with potential renters and screen them to prevent possible issues.
With more people working remotely, vacation and short term rentals are a great option for a quick get away.