What Are Short Term Rental Properties?
As an investor myself, I'm so excited to talk about the amazing world of vacation rentals so let's get right into it.
What is an STR property? STR properties, also known as short term rental properties refer to the practice of renting out a property for a short period of time, usually for vacation purposes. From a cozy spare room in a homeowner's house to a luxurious vacation home or apartment, the options are endless.
Other reasons why one might venture into an STR property could be transitioning between homes, traveling jobs i.e. nurses, winter rentals to escape the cold weather, business meetings and plenty more.
Thanks to online platforms like Airbnb and VRBO, it has never been easier for property owners to list and rent out their properties, and for travelers to find and book the perfect accommodations. One of the best things about short term rental properties is the incredible amount of options and flexibility they offer. Instead of being limited to traditional hotels, travelers can choose from a wide range of properties, including apartments, homes, and even unique spaces like treehouses or yurts. This is especially appealing for families or groups who want more space and amenities than a hotel room can provide.
But the benefits of vacation rentals don't stop there! They also provide economic benefits for property owners and the local community. Property owners can use their properties to generate income, while local businesses can benefit from the influx of tourists who stay in vacation rentals. In addition, many property owners have turned to professional property management companies to help them manage their rentals, which can be especially helpful for those who live far from their rental or who don't have the time or energy to self manage, creating a huge appeal to many investors around the country.
Things To Consider
Looking for a pro? Consider a professional property manager in the area you invest. An important thing to pay attention to is the rise of professional property management in the short term rental industry. As the industry has grown, many property owners have turned to professional property management companies to help them manage their rentals. We at Home Search Simply offer an excellent list of capable management companies throughout our region, don't hesitate to ask! These companies handle everything from listing the property and managing reservations to cleaning and maintaining the property, which can be especially helpful for property owners who live far from their rental or who don't have the time or resources to manage it themselves.
Of course, the COVID-19 pandemic has had an impact on the short term rental industry, with travel restrictions and concerns about safety and sanitation leading to a decrease in demand. But as vaccines become more widely available and travel restrictions ease, the industry has bounced back and continues to thrive.
Run the numbers, then run the numbers again! Stats in the marketplace can be vague sometimes. It is very important for you to get familiar with the expected rentals, expenses, and net generated income after all the payments are made on any potential STR investment. Keep this as a focus and work with your mind to make the best decision, unless you just want an amazing place to vacation yourself. In that case, forget this paragraph!
Another important aspect to consider is the role of home-sharing platforms like Airbnb and VRBO in the short term rental industry. These platforms have played a significant role in the growth of the industry by allowing property owners to easily list and manage their rentals and providing travelers with a convenient way to search and book accommodations. However, these platforms have also faced criticism for not doing enough to regulate the properties on their platforms and for not collecting taxes in the same way that hotels do. Be mindful of this aspect when considering your STR property. Be decisive on which platforms you or your property manager will list your investment on, it definetly matters if you want the greatest outcome.
So, what does the future hold for the short term rental industry? It's difficult to say for sure, but it's likely that the industry will continue to evolve and change. Some experts predict that we will see an increase in professional property management companies and a shift towards more upscale and luxurious vacation rentals. It's also possible that new technologies, such as virtual reality, could play a bigger role in the industry. One thing is for certain – the world of vacation rentals is an exciting and dynamic place, and we can't wait to see what the future has in store for this incredible area of investment!