Do you spend a lot of time out of town? Do you own multiple properties, many of which you don’t plan on living in? Then renting out your home can be a great way to pay your mortgage and even make some extra cash. However, the first thing many people think of when they decide to rent out their home is long term renting. This, of course, is a noble approach, and can easily be profitable if done correctly; but, if you live in a beautiful part of the country, there is another route that you can take that may be even more-so: Short Term Renting.
Why Short Term Renting?
Perfect for those living in a hip and happening part of town, short term renting – otherwise known as vacation renting – can be exceedingly profitable, and doesn’t have to be a long term commitment (like long term renting needs to be). It can also be fun, and a great way to make some extra cash on the side! Other upsides include:
- Shorter Period of Commitment means More Money: While long term rentals necessitate affordable living and rental market rates, vacation rentals allow you to increase your monthly income by several times (in most cases). Depending on the quality of your home, you can charge several hundred a night, which more than likely far outpaces the monthly rent you’d receive from a long term rental. And, while it is true you may have to deal with the risk of your home sitting empty some weeks, if you can keep your home full for the majority of the year – a definite possibility in beautiful Arizona – your profits will be much more attractive in the long run.
- You Don’t Have to Say Goodbye to your Home Forever: Many look to turn their homes into rentals simply because they’ll be out of town for a while; however, if you aren’t going to be absent the entire year, or if you’re absences are going to be intermittent, turning your home into a long term rental may not be the path you wish to take. Luckily, turning your home into a vacation rental allows for much more flexibility – depending on the contract you sign with your management company. This way, you can live in your home when you’re in town, and rent it when you’re gone; it’s easy, hands off, and can make those aforementioned attractive profits you are surely looking to acquire.
- Further Control of your Home: While a one-year contract provides the peace of mind that you will, indeed, be making consistent money over that period of time, it can also mean handing your home off to the care of a stranger with little to no insight into what may be happening as the year goes on. Though many long term rental management companies will provide random checks of your home, not all do, and not all tenants are trustworthy; meaning stains, broken features, and worse can accumulate over the long 365 days of your contract. Short term rentals, however, must be cleaned and inspected between each tenant, of which few last much longer than a week. If you hire a management company that does their job right, this gives you the – perhaps – more important piece of mind that your investment is protected and up kept throughout the year, rather than simply when your contract expires.
Tips for Converting your Long Term Rental
Just remember; though making your home a vacation rental may seem like the easy way to make some extra cash while out of town, short term rentals aren’t for everyone, and there are a few crucial aspects your home must provide.
First, your home should have a fantastic location – such as Scottsdale or Camelback Mountain – as well as a certain uniqueness that makes your property stand out. Whether you’re near the downtown area, or you have a variety of hiking trails in your backyard, your home should be a place of entertainment – it is, after all, going to be host to a hopefully memorable vacation! In addition to this, amenities and accessibility are also extremely crucial to a successful vacation rental. No one wants a plain interior, or a home that’s isolated from everything enjoyable in town; the closer to a freeway your home is, and the more vacation amenities you provide, the better!
If your home provides all of this, it may be time to convert your home to a short term vacation rental. If you have questions and need to speak to a professional, call local Scottsdale vacation rental company BookMyVacay.com (888) 758-8423.