Should you invest in a short-term rental property
Investing in a short-term rental property can be a way to purchase an investment property or potential holiday home and diversify your investment portfolio. Short-term rentals will be rented by those who are on holiday or for business and looking for a property to stay in that is outside the normal accommodation offering.
There are maximum lengths that are applicable in each state and depending on where you are located, before embarking on this strategy, check the requirements to ensure that you are complying with legislation and tax obligations.
What is your service offering?
Not all holiday managements are created equal and differing levels of properties will appeal to everyone dependent on their budget. Where you position your property will depend on the age, condition, and location and as such determine the asking price that you could expect.
Before releasing your property to the short-term rental market, research your area and consider the demand for similar properties. Will you need to carry out any work on the property to make it desirable as a short-term rental? What type of furnishings will you be including? Do you live near or are you planning on having it managed by a professional?
All these questions are essential in working out the suitability to enter the short-term rental market.
Are you flexible with the calendar
One of the reasons that you may decide to offer your property as a short-term rental or invest in one are the benefits of also having a holiday home that you can visit at certain times of the year.
To maximise the returns on your investment, it is wise to consider when the high seasons and demand is for your area and leave those times available for potential guests rather than occupying the property. This will ensure that you are making the most back at the best possible time and increasing your income.
Running costs versus time
If you do choose the short-term rental path, it is important to remember that there will be maintenance that is required in the upkeep of the property as well as wear and tear over the home.
Work out if you have the time to manage the property yourself including managing maintenance, the check-in and check-out process and cleaning and laundry between guests.
Your time is precious and by employing a holiday manager to manage the property, you can gain back those hours and leave the maintenance and running costs up to them to manage.
If you would like to know more about our range of holiday management packages, contact our team to talk through your options.