Author Topic: Short-term rentals  (Read 3186 times)

velocistar237

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Short-term rentals
« on: May 29, 2012, 07:24:28 PM »
Has anyone looked into investing in short-term/vacation rentals? We don't have the low-price housing around here that many do elsewhere, but we do have a consistent, year-round demand for decent places to stay, and people are willing to pay a good amount for it. How can I figure out whether it's worthwhile for me?

Choices

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Re: Short-term rentals
« Reply #1 on: June 05, 2016, 01:05:14 PM »
Do you have the money to pay cash? And are you up for the maintenance and marketing?

Rhoon

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Re: Short-term rentals
« Reply #2 on: June 05, 2016, 10:44:32 PM »
Has anyone looked into investing in short-term/vacation rentals? We don't have the low-price housing around here that many do elsewhere, but we do have a consistent, year-round demand for decent places to stay, and people are willing to pay a good amount for it. How can I figure out whether it's worthwhile for me?

Head on over to bigger pockets and check that site out if you're looking into real estate.

Mighty-Dollar

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Re: Short-term rentals
« Reply #3 on: June 06, 2016, 12:51:38 AM »
Has anyone looked into investing in short-term/vacation rentals? How can I figure out whether it's worthwhile for me?
Are you talking about renting or buying property to rent / sublet?
It's completely dependent on location, location, location. Go on AirBnB and VRBO.com and see if other places in your area have lots and lots of reviews. I know someone who sublets apartments all in Hollywood, CA near the Mann's Chinese Theater and he is laughing all the way to the bank with about a 97% occupancy rate of MULTIPLE apartments all rented through AirBnB. However most areas in Los Angeles are struggling. I tried renting my 2 mil house on the West side that has no view, is not close to stores and is a full 2 miles from the beach and I got NO action! People are looking for the cheapest deal they can find. There's not a lot of high end vacationers / tourists. I should have known by looking at the scarce reviews in my area. You want to see places with 70, 80, 90 reviews on Air BnB and VRBO. Then you know you're in a hot area.
« Last Edit: June 06, 2016, 12:54:18 AM by Mighty-Dollar »

jodelino

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Re: Short-term rentals
« Reply #4 on: June 11, 2016, 12:14:33 AM »
Be sure to check your local ordinances for short-term rentals. Many municipalities are stepping up regulation. Are you required to get a license? What are the terms (for instance: one dedicated parking place per bedroom)? Are you required to collect local lodger's tax or other taxes? Are you willing to do this bookkeeping?

Be aware that most short-term rental customers expect a great location and a lot of amenities (cable TV, wi-fi, nice furnishings, linens, and kitchen wares, etc.), and everything has to be working perfectly all the time. Do you have the time to put into managing the property? Will you do the cleaning between guests yourself, or will you hire a cleaning crew?

I have a short-term rental on VRBO in a high-demand tourist area, and it is rented about 265 days/year. i have 5-star reviews on VRBO, and repeat guests. I manage the property myself and hire an assistant and cleaners. I've never had any problem renters, but I have had stressful mechanical failures while tenants were in the place--you have to respond very quickly when someone's vacation is on the line.

I inherited this property a couple years ago. While I started making a small profit in my second full year of renting, and have my own reasons for wanting to keep the place, from a purely economic perspective, I think I'd be better off selling it and investing the money in the stock market.

DeanW5

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Re: Short-term rentals
« Reply #5 on: October 10, 2016, 06:12:44 AM »
First identify the most visited US cities. And then look how booked Airbnb’s calendars in these cities for the next 30 days. Pay attention to the type of property and neighborhood.
« Last Edit: October 10, 2016, 06:23:33 AM by DeanW5 »