In 2018, the average American took 17 days’ worth of paid time off. This pattern has been harder to track in recent years because of the pandemic and its effects on the labor market.
However, if recent trends are anything to go by, labor disputes may cause paid time off to grow in the near future. Whether the working world changes much or not, the vacation industry will be worth investing in.
Investing in a short-term vacation rental property can fetch you a tidy profit if you know what you’re doing. There are a few things to know before investing, though, and we’ll discuss them in this article.
What is a Short-Term Rental Property?
As the name implies, short-term rental properties are properties that are rented for a period of one year or less. This time frame leaves a little wiggle room, though, and landlords use it to work for their market.
For instance, while we’d all like to go on vacation for a whole year, that’s just not realistic. With this in mind, many landlords in charge of vacation rentals will set the rent and prices, and timetable to reflect that.
There aren’t too many limits as to how often you can charge rent. You can do it on a daily, weekly, or monthly basis, but most who rent out vacation properties charge daily or weekly.
The great thing about a short-term vacation rental is the short-term rental return on investment. The average rent in the most affordable state in the country, North Dakota, is only $826 per month.
A short-term rental investment can earn that much or more in a week. People who rent vacation homes tend to have more disposable income, so they’ll likely be willing to pay more to stay in a vacation home.
Short-term vacation properties also come with one major downside compared to most other investment properties. Since the turnover between tenants is going to be much quicker, you’ll need to perform maintenance a lot more often.
Frequent cleaning will be another responsibility, but you don’t have to handle it yourself. There are plenty of services that can help you keep your rental property clean. You can read more about this by clicking the link.
When maintenance is required, the short turnover rate will allow you to deal with the problem a lot sooner. Quick responses to problems can mean the difference between a well-reviewed rental property and a poorly-reviewed one.
What to Know About a Short-Term Vacation Rental
A short-term vacation rental is a great investment, and the short-term rental market is quite lucrative right now due to the bounceback from COVID-19.
Still, owning a vacation rental property isn’t for everybody. It takes a certain kind of dedication to carry out the responsibilities of owning a rental property. We’ve discussed some of the realities of owning a rental property in this article, but each property is a little different from the others.
They come in various sizes, and themes and many have different rules. You can learn more about real estate and homeownership on our site.