As a property owner or investor, you will come to a very important question and decision to make: would you choose to use your property for short term rental or long term? Both strategies have their own advantages and disadvantages. It is essential to remember that when you invest time and money into a property, the main goal is to obtain the best possible return on your investment. In this article, we will focus on short term rental as the main business line of our company MRM.
The first aspect to keep in mind in order to make this decision is to consider whether or not the property is located in a well-established vacation market for tenants. As you can see, the property location is key to determine the type of strategy you will pursue. It is important to conduct some research on the location as it will heavily influence how much income it will be bringing to the table throughout the course of the year.
Short Term Rentals
Short-term rentals are now a very attractive alternative to expensive hotels in vacation and tourism destinations. They provide visitors the feeling of home sense and more in-depth cultural immersion that a hotel cannot provide. But what exactly is a short term rental? A short term rental is considered to be a property that is rented anywhere between one night up to one month. On the other hand, long term rentals are those properties rented for one month or longer.
There is a reason for the huge number of owners that have listed their properties in short-term rental platforms like Booking, Airbnb, and VRBO. Short term rentals offer freedom, flexibility, and a better return on investment in the long run. In the following section, we will be discussing in more detail the main advantages and benefits of the short term rental strategy.
Personal vacation use: One of the greatest benefits is that as the owner, you can make personal use of your vacation rental property whenever it is not rented. It is really easy for the owner to block off those days that you would like to use the property.
Not tied to the same tenant: When doing long term rentals, there is a chance you run-up to a tenant that ends up not being as good as it should be. You can get stuck with a tenant that does not fit with you and your property or someone who does not pay rent on time. This is automatically avoided with short term rentals, as tenant turnover is higher. Moreover, you can sell your property whenever you want, without having to worry about moving a long term tenant out.
Less wear and tear: As short term rentals are usually not rented throughout the entire year in comparison to long term rentals, it takes relatively longer to build up noticeable wear and tear on the property.
Easier to keep up with repairs and maintenance: Property is kept in better condition because of the constant cleaning and inspection after every guest. This aspect allows you to be able to catch and fix things more often.
More rental income in the long term: Owners are able to charge a higher nightly rate for short term rentals depending on the season and time of the year. Even though occupancy can fluctuate and rental income is less consistent, short term rentals tend to provide more rental income in the long term.
MRM Vacation Rental
It is no secret that for short term rental owners will find that they need to work harder to correctly market their property and get it rented. This hard work process includes constant communication with interested guests and current tenants, updating listing sites, offering promotional discounts, and much more. That’s exactly where MRM comes to action, we take charge of the entire rental process making the best out of your investments and maximizing the return on investment. Managing vacation rentals is our passion. Partner with us and enjoy the benefits of professional investment property management services.
Our property management services include the following:
- Account Management
- Listing and Pricing Optimization
- Professional Photography
- Monthly Financial Reports
- Cleaning and Laundry
- Key Exchange
- Staging and Design