A homeowner who is prepared to relocate, you might be considering the option of converting your current property into a short-term rental instead of selling it. Short-term rentals (STRs) have become increasingly popular in recent years as an alternative to hotels.
Even though the notion of having a short-term rental might seem alluring, the actual responsibility of managing one could prove to be challenging. There are several obstacles that you may encounter if you decide to rent out your house instead of putting it up for sale.
A Short-Term Rental Comes with Responsibilities
Successfully managing a short-term rental property involves a significant amount of time and effort. You will need to balance various responsibilities, such as handling reservations, coordinating check-ins, and addressing cleaning, landscaping, and maintenance tasks. Each of these demands can be taxing individually, but together they can be overwhelming.
Additionally, short-term rentals experience high turnover rates due to the frequent arrival and departure of guests. This constant influx of visitors can result in increased wear and tear on your property, which could necessitate more frequent repairs or replacement of your furnishings, fixtures, and appliances.
It is critical to consider your ability to commit to this level of responsibility, especially if you intend to list your property on a rental platform. Many of these platforms have specific requirements that hosts must adhere to, according to a Bankrate article.
“Managing a rental property can be time-consuming and challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable contractors you can reach out to in a pinch? Consider whether you want to take on the added responsibility of being a landlord, which means screening tenants and fielding issues, among other responsibilities, or paying for a third party to take care of things instead.”
Deciding to turn your home into a short-term rental, there are numerous factors that require careful consideration. If you are not prepared to handle the responsibilities involved, it may be more beneficial to sell your property instead.
Short-Term Rental Regulations
The continuous expansion of the short-term rental industry, regulations have become more stringent. Such legal restrictions often place constraints on the number of vacation rentals allowed in specific areas, particularly in larger cities and tourist hotspots where there may be apprehensions about overpopulation or housing deficits for locals. Additionally, limitations could apply to the type of property that is eligible for use as a short-term rental.
In numerous cities, property owners must acquire a permit or license before they can rent out their homes. Nick Del Pego, the CEO at Deckard Technologies, provides an explanation:
“Renting short-term rentals is considered a business by most local governments, and owners must comply with specific workplace regulations and business licensing rules established in their local communities.”
It is crucial to conduct thorough research on whether short-term rentals are permitted or prohibited by local authorities and your homeowners association (HOA) before even contemplating renting out your home.
Before making the decision to transform your property into a short-term rental, it is imperative that you conduct extensive research. If you are uncertain about which option to choose, whether it’s selling your house or renting it out, let’s connect today.