The rental property market, especially the demand for apartment rentals, has been soaring as more millennials find it cheaper to rent than to own a home.
According to RealPage, a real estate analytics company, the second quarter of 2019 saw rents spike to an average of $1,390 per month. However, this is half the story. Traditionally, the term "rental property" has been almost always associated with long-term residential rental housing.
Not many people are aware of the lucrative opportunities that short-term rentals present to investors and homeowners. Thanks to a decade of rapid growth, the US's short-term rentals market has now moved mainstream.
With a broadening range of options from inner suburb cottages to rural properties and even traditional beach destinations, the short-term rental market is on the uptrend. This is why you need to jump right in and get a slice of the pie.
The question remains though, how do you do that? We'll get to that shortly, but first, let us look at a few highlights and then see what this market has to offer you.
Key short-term rental highlights
In 2019, the demand for short-term rentals climbed to 34% from 30% recorded in 2018.
The rental traveler population is becoming younger, with over 40% aged below 35.
Property managers have been generating the largest share of their bookings through rental listing websites.
Over 50% of the current rental hosts started barely two years ago, with primary residence renters being the new kids on the block.
Why Should You Consider Short-Term Rentals?
Perhaps youâve been trying to figure out how best to rent out your investment property. Should you list it as a short term rental or put it up on a long-term contract. Many property investors have been on this road before. The best approach has always been to first look at the merits of short-term rentals. Here is what you stand to gain.
More overall rental income: Typically, short-stay rentals attract higher nightly rates compared to long term rentals. For instance, in popular vacation areas, properties that could fetch $1,500 per month on long-term rentals can get more than double that in short-term rentals.
Easier maintenance: In between renters, your property is cleaned and any minor issues fixed, thus preventing long-term damage. Also, since the cleaning costs are often passed on to the guest, maintenance becomes a breeze for you.
Price flexibility: As opposed to long-term rentals whose prices are bound by law and lease contracts, short-term rentals give you the flexibility to adjust prices to respond to the changes in supply and demand. In turn, this helps you generate more income without significantly affecting occupancy rates.
Personal use: No one locks you out of your property. If you want to take your family on vacation, you simply block the days you'll be there so no guest can book it. Such a flexible arrangement!
How Should You Begin?
Well, it all sounds good, but you need to be strategic. As a word of advice, don't struggle with self-property management. Instead, utilize a service that can help you create your listing, give you visibility, coordinate your guest check-ins, and optimize your pricing depending on demand.
Fortunately, there are short-term rental property management services that can do this for you plus so much more. That way, you do not have to worry about running around looking for customers, checking them in, and organizing cleanups in between bookings. We take care of that for you. đ Check out our website for more information.