Sabrina Sirotkin Welch Team at Keller Williams Atlantic Partners – Southside
As more and more travelers abandon sterile hotel suites for the creature comforts of residential homes, or even for alternative living experiences, short-term rental opportunities continue to rise in popularity! And while these vacation properties certainly demand more owner attention than traditional rentals, there are also many perks compared to the long-term game.
The most obvious benefit to owning any sort of rental property is the extra cash flow, but under the right circumstances, short-term rentals often earn more than long-term rentals. Because not only can you put a price on the physical space, you can also charge for cleaning and service fees.
TIP Take 137 Southwind Circle for example – at an average annual income of $43,000, this coastal bungalow earns about 32.7% more as a short-term rental than it would a long-term rental.
MARKETING MADE EASY
Truth be told, preparing and maintaining a short-term rental property can feel both intimidating and tedious. But in mind of online marketplaces like Airbnb, VRBO, and HomeAway, you could advertise, book, and manage your rental property almost effortlessly.
TIP As the most popular platform to date, Airbnb welcomes an average of 14K new hosts per month to share and individually control their availability, prices,and house rules without signup fees – you can learn more about short-term rental preparations and maintenance here.
THE SKY’S THE LIMIT
Short-term rentals come in many forms – whole houses, private bedrooms, treehouses, campers, boathouses… even tipis and yurts. And since travelers also come with a variety of needs, tastes, and budgets, there is no reason to deny the potential success of a studio apartment rental against a multi-million dollar beach house.
TIP If you are eager to start but feel weary about the anticipated time investment, begin by renting out the extra bedroom at home. This way you can gauge guest and maintenance expectations without spreading yourself thin at a separate property – at least until you become comfortable with the process.
We have all heard the warning, “never mix business with pleasure.” But in this case… why not? While it may be preferable to explore and travel to unfamiliar places during your time off, owning a short-term rental gives you the convenience of a no-cost vacation destination throughout the year.
TIP Use your short-term rental to organize parties and other events without leasing a separate venue, or host your family and friends (at arm’s length) when they come into town for a visit. All of which can be prepared and executed at a moment’s notice, so long as your space is not already booked.
Since January 1, 2018, the Tax Cuts and Jobs Act has allowed owners to deduct mortgage interest and business expenses on rental properties operated as businesses. On the same basis, this federal tax law may even allow you to deduct up to 20% of net rental income from your taxes.
TIP Many short-term renters are not aware that they are responsible for collecting lodging taxes from guests, just as hotels do, to pass onto tax authorities – you can learn more about lodging taxes and affordable management services here.