Short-Term Rentals: All You Need To Know
Are you interested in turning your property into an investment that augments your income? Have you considered renting it out as a short-term rental? If you are an avid traveler, you understand how important and popular these rentals are. This article sheds some light on short-term rentals and how you can benefit from them as a host.
Essentials of Short-Term Rentals (STR)
A short-term rental (STR) is a residential property that tenants rent for less than 30 days. This term covers tenants that choose to rent the entire property or crash on a living room couch. The tenants are mostly traveling businesspeople, locals looking for a staycation spot, and vacationers. Most people consider short-term rentals a better alternative to traditional lodgings and hotels because they offer optimum privacy and are affordable. And to show just how popular this industry has become, statistics recently showed that 600,000 Americans allow short-term guests to rent their private properties and homes.
Reasons to Own a Short-Term Rental
If you are wondering if turning your property into a short-term rental is a good idea, consider the following reasons:
Earn additional income
Short-term rentals offer you the opportunity to earn extra income from guests who rent your property. Plus, you get to set your rates depending on factors like the season, type of property, and demand with this type of investment. For example, if it is peak tourist season in your area and people are flocking in, you can raise the charges, depending on how much attention your property receives.
Reduced property overuse
Long-term tenants live in and use your property for an extended period. That often leads to wear and tear that often requires renovations once they move out. But the tenants in short-term rentals stay for less than a month. And, during this time, they are likely to be outside sightseeing or attending business events and meetings. Therefore, chances are they will leave your property in pristine condition.
Interact with new people
Note that you get to choose the extent of interaction you have with your tenants as a host. If you prefer no interaction at all, your privacy will stay intact. However, if you like taking guests into your home, meeting new people, and entertaining, short-term rentals offer you the perfect opportunity to do it.
Short-Term Rental Compliance Monitoring
The rising popularity and availability of short-term rentals have come with their share of challenges for communities and governments. For example, local authorities find it increasingly difficult to keep an eye on short-term rental activities and tax payments or communicate with hosts whenever there's a problem. Fortunately, today, governments, both local and state, can tackle the challenges of short-term rentals using short-stay rental compliance monitoring solutions, including software. These solutions also help the host understand STR compliance laws and regulations and save critical revenue they would otherwise lose due to noncompliance.
