Rental properties are a fantastic investment. Short-term rentals can provide reliable income while giving you the flexibility for other uses.
To be profitable, managing a rental property takes a lot of work and planning. A vacation property also carries with it greater risks. You need to be prepared for the unexpected.
Below are three main considerations before starting a short-term rental. It explains what to look out for and how to get started. It also lays out some options, such as for short-term rental management, to ensure you get the most out of your investment.
1. Know Your Local Market
One of the easiest yet most important things to look at before starting a short-term rental business is the local market. This includes how competitive similar rental units are in the area.
Assess your neighborhood (if you already own the property) or look for communities where rentals are high. This means that there is greater demand but also more competition. It is important to investigate average rental prices and vacancy rates.
Going one step further, look for properties in areas that are "up and coming." If the area lacks attractions like parks, restaurants, or shopping, but those things are starting to pop up, you can anticipate increases in rental demand.
2. Be Realistic About Your Costs
Short-term rentals require a lot of time and money. To make things go as smoothly as possible, you need to plan.
You need funds for marketing, tenant screening, repairs, maintenance, improvements, insurance, and legal fees. From a revenue standpoint, you should plan for times when the home or unit is unoccupied. You need to be able to weather these droughts financially.
If you are not in a position to handle all these responsibilities--either because you do not have the time or the money--you could put yourself at great risk. Consider this before moving forward.
3. Leverage Professional Experience
It can be difficult to know what you don't know, but reaching out to professionals for advice can go a long way toward ensuring success. Real estate pros can help you navigate any legal restrictions. They can recommend the requisite level of insurance coverage you might need.
They also can help you with short-term rental management. They can take on everything from marketing and tenant screening to grounds and building upkeep. They also can assist with financial management, including accounting and bookkeeping.
Also, bundling services can help save you money. It will allow you to leverage the expertise of professionals from a wide array of areas while cutting costs.
Find a Short-Term Rental Management Company Near You
Now that you have some short-term rental tips, you can proceed with confidence. A professional real estate company can further advise you on factors to look at before moving forward with a short-term rental business.
PMI Platinum FL provides the highest quality property management assistance and real estate sales in the Orlando area. We offer a variety of services, including short-term rental management. Reach out to us today to learn more.
