Short-term rental is one of the most lucrative businesses currently. Many homeowners are taking advantage of people traveling once again, and post-COVID, people are focused on different experiences when traveling. More and more people are turning to short-term rentals for remote work experiences and a change of scenery. If you have considered listing your home as a short-term rental, there are some things you do need to consider. 

What is a Short-Term Rental?

A short-term rental is when you lease a property for 12 months or less. Some homeowners will rent them weekly, monthly, and even nightly. Most people refer to short-term rentals as vacation rentals. 

Are Short-Term Rentals Lucrative?

Many people have found short-term rentals to be one of the most effective ways to earn money. Real estate investing has always been popular, but the short-term rental world offers multiple benefits including:

• Earn more income – Using your home to generate income is an ideal way to supplement your income.
• Improved home maintenance – A short-term rental does mean you will invest in your home more, which prevents serious problems by catching them early on in the maintenance phase. 
• Tax benefits – There are a handful of tax benefits including deductions for home maintenance, marketing, management, and more. 

Cons of Short-Term Rentals?

While short-term rentals provide a number of benefits, there are some disadvantages to consider including:

• Maintenance costs – Offering your home as a short-term rental does require more maintenance costs such as housekeeping, utility costs, entertainment costs (offering streaming television, etc), yard maintenance, and more. 
• Time commitment – If you are planning to maintain your rental property without a landlord, expect to commit a great deal of time to manage your property. 
• Reviews – One way to guarantee you keep people booking your property is to spend time offering great service. Encourage guests to leave reviews so your property has a great deal of value to potential renters. Rentals live and die on reviews, so you must always respond to reviews, good and bad. 

Getting Started With Short-Term Rentals

If you are ready to get started with short-term rentals, here are seven tips to get started:

1. Research local regulations. Prior to listing your home as a short-term rental, you must research local laws and regulations according to your city or county in which the property is located. 
2. Get licensed. Certain locations require licenses in order to list a short-term rental. Local municipalities will have certain licensing and certifications you must obtain to list and maintain an Airbnb property. 
3. Price it right. Research other properties around to determine the right price for your luxury home rental. Offering discounts for more extended stays are common in the short-term rental world and should be considered when developing a pricing structure.
4. Promote your listing. It is important to get the word out there to start getting rentals. VRBO, Airbnb, Vacasa, and HomeAway are some of the best websites to start when listing your new rental.
5. Secure your home. Keep your property safe by protecting your home with surveillance cameras and keyless entry locks. It’s also a good idea to have closets that lock or personal belongings in a secure location. 
6. Screen your guests. To keep your property and neighborhood safe, screen your tenants. You need to obtain certain personal information to provide security to your home. 
7. Provide extra services. If you want to increase your income, consider add-ons that could increase the value of your home. Airport transfers and amenities like gyms, hot tubs, and pools are great ways to entice guests to stay at your short-term rental.

Contact Jensen and Company

When it comes to buying or selling your luxury property, Jensen and Company can help. Our expert team is here to help you get top dollar for your rental property. Contact our Park City real estate team to learn more about leasing your property as a short-term rental.