If you’re a homeowner ready to move, you might consider using your current home as a short-term rental rather than selling it. Short-term rentals (STRs), typically offered as an alternative to hotels, are an investment that has grown in popularity in recent years. According to a Harris Poll survey, 28% of homeowners have considered using rental services to temporarily rent out their homes to earn extra income.
Owning a short-term rental is an attractive idea, but the reality of being responsible can be daunting. Some of the issues you may face when renting a home rather than selling it is shown below.
A Short-Term Rental Comes with Responsibilities
Successfully owning and renting a home takes effort. Think about your ability to make that commitment, especially if you plan to use the platform to promote rental products. Most of them have specific requirements that the host must meet, which requires a lot of work. A recent article on Bank rate explains:
“Managing a rental property can be time-consuming and challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable contractors you can reach out to in a pinch? Consider whether you want to take on the added responsibility of being a landlord, which means screening tenants and fielding issues, among other responsibilities, or paying for a third party to take care of things instead.”
Not only are there the lead times and costs of owning a short-term rental, but there are also risks you may face in the future. Investopedia warns:
“Risks of hosting include renting your place to rude guests, theft or damaged property, complaints from neighbors, and potential regulatory violations depending on your location.”
Before you take the plunge and convert your home into a short-term rental, there are many things to consider. If you don’t have the work ready for what you want, it might be wiser to sell it instead.
Your House May Not Be Ideal for Your Rental Goals
Also, not all homes are viable short-term rentals. One of the biggest factors is the location of your home. The less likely your neighborhood is to become a tourist destination, the less inquiries you will receive from potential renters, which will affect your bottom line. An article from the National Association of Realtors (NAR) advises: increase.
“When it comes to the viability of profitable STRs . . . consider factors like location, amenities, and whether the property is appealing. Most people seek STRs in locations where they vacation, so proximity to attractions is important. Likewise, the property should cater to a variety of travelers.” It’s wise to do your homework and know what rents are in your area, annual sales figures, and how that compares to your goals.
Bottom Line
Converting your home to a short-term rental is not a decision you should make without doing your research. Contact us now to determine if selling your home is a better option.
Find out why Kaya Homes is the leader in Long Island Real Estate and are your go-to realtor in the Lynbrook, Oceanside, Malverne, Hewlett, Valley Stream, East Rockaway, Woodmere, Cedarhurst, Baldwin, North Woodmere, Woodsburgh, Hewlett Neck Hewlett Harbor, Bellmore,Wantagh,Merrick and Freeport area.
Fri, 03 Feb 2023 00:47:32 +0000
by Mottek Group