Short-term Rentals - How to Start

As the short-term rental market continues to grow many are wondering “How can I get in on it?”. Short-term rentals are often underused although highly profitable avenues of real estate investing. During this article, we will discuss why the short-term rental market is booming, what some advantages are for owning short-term rental properties, and where to start.

Why is the short-term rental market booming?

With millennials starting a family of their own and in turn taking family trips, they are paving the way for an alternative sort of stay from the traditional hotel and motel avenue. The popularity of internet booking sites such as VRBO and AirBNB also has played a major role in boosting the short-term rental market, which was once only reserved for cottages along the shores of lakes and the ocean during summer months. With the endless options of location, style, and atmosphere of a rental property, virtually everyone can find a property that they truly feel at home in while away from home, or they can try something completely new such as staying in a tiny house, yurt, or cabin for instance. Another contributing factor is that as Gen Z and Millennials find their way in the working world, they have adapted more of a nomadic ideology and travel, even if for a shorter time frame is higher of a priority than generations past.

What are the advantages of short-term rentals?

The biggest advantage might be the most obvious - no long-term tenants to have to chase around for rent every month. If you host your rental property through a booking site there is a guaranteed upfront payday unlike some troubled long-term tenants, this means that there is no guesswork or pestering for that rental fee. Depending on the property the weekly rental rate could also be significantly higher than that of a long-term month-to-month lease, in some cases upwards of thousands more - location dependent. Once you get a team of dedicated people to assist you with the rentals, including a handyman and a maid for turn over services, they are also much easier to maintain with low stress and high rewards.

Where do you start?

First, you need to consider the type of property you would like, this can range from a typical vacation home with water frontage to a unique stay like a remote cabin or tiny home. Once you decide that you will need to determine the location - this is huge! Depending on location there will be certain regulations surrounding short-term rentals. Make sure you have a trusted agent who can help you navigate through each area's specific guidelines for your potential rental.

Now what?

Is buying a property to use it as short-term rental the start of your journey to financial freedom? It could be! Consider the above discussion and look at your finances to see if you are in a position to start your search. A trusted local agent is only a phone call away!

For information on short-term rental properties in the Dallas-Fort Worth area, reach out to Anthoney Hanks with Beyond 404 Realty. He will guide you in the right direction and help you find your perfect rental property.