Should You Consider a Short-Term Rental?
It can be tough to determine whether or not to dive into the realm of a short-term rental. On the one hand, for short-term rentals, you can charge higher rent, but they are also seasonal, and the maintenance of short-term rentals requires a greater degree of landlord involvement. For instance, during the high holiday season, you could take advantage of holiday rentals, charge a higher rate, and once the demand isn’t there, simply rent it out for a few months. Many foreign firms use their expatriate workers for short-term housing and are willing to pay high rents. The business market can be very profitable if your property is situated in a certain area. Without needing to wait for a long-term contract to reach its end, you can up the rent more often. The landlord must give a tenant proper notice of their plan to increase the rent. However, there might be caveats. Management costs for short-term rentals are far higher. This is a clear reflection of the degree of special care and maintenance that has to be paid to the property by a maintenance firm. There are also higher probabilities for vacancy periods. To effect the cleaning of the rental and to arrange move-in and move-out on future occupant dates, it can prove difficult to prevent unoccupied times. Notice that while the higher rental can compensate for vacancies, there may be liabilities for tax on an unoccupied dwelling in certain jurisdictions.
This update is by Livo, a rental optimization platform aimed at providing you with a robust revenue enhancement tool. With Livo, you can maximize rental yields, accept and manage multiple offers and offers, and enjoy better retention. Livo targets rentals with the greatest odds of receiving a multitude of offers, and those with the best locations, features, configurations, and more. Please call 833.333.5486 today to learn more.