Since its launch, Airbnb has provided great opportunities for people to monetize their properties. At first, it allowed homeowners to make a little extra money by letting people rent out their homes while they’re on vacation. But now, many people are taking the opportunity to rent out their Airbnb properties for months at a time.
If you have an investment property, you might be wondering if you should stick to the traditional long-term rental option or go for short-term rentals instead. While either one certainly has its own set of advantages, it’s important to pick the one that is best suited for your situation. Here, we’ll discuss the benefits of each option so you can make an informed decision regarding your property.
Why You Should Choose Short-Term Rentals
Higher Rental Rates
When you go for short-term rentals, you can expect to generate more revenue thanks to higher rental rates. With short-term rentals, you can even adjust the nightly rates of your property based on seasonality and increased demand. And if your property is well-managed and at a great location, you can even charge higher rates.
Flexibility
If you’re a bit wary or scared of committing to renting your property full-time, short-term rentals are the way to go. They offer more flexibility and even allow you to use your property for personal affairs from time to time. If you want to stay at your investment property for a weekend away with the family, you can block out availability on those days and still be able to rent it out on other days.
With short-term rentals, you also don’t need to worry about getting tied down to a single tenant. Instead, you can allow people to only rent it out a few days at a time.
Less Wear And Tear
Since guests will be staying for shorter periods, maintenance will be more frequent. As a host, you are expected to clean and check your property in between guest visits. This will keep your property in better conditions and minimize wear and tear.
Why You Should Choose Long-Term Rentals
Stability
Many property owners opt for long-term rentals because they’re a secure investment. They’re a great source of passive income, as you can expect monthly payments for the duration of the lease. Plus, you wouldn’t have to worry about the off-seasons affecting your rental.
Self-Management
There’s a lot more fuss in managing short-term rental, from frequently dealing with guest check-ins and check-outs to regular maintenance and upkeep. That’s why many Airbnb hosts opt to hire a rental property management company to take care of all these things.
Long-term rentals, on the other hand, are easier to self-manage. Most of the effort usually comes before the start of the lease, as the landlord prepares the unit for the tenant. But other than that, there’s really not much to worry about.
In Summary
When you want to rent out your property, it can be difficult to decide whether to do long-term or short-term rentals. On the one hand, traditional long-term rentals offer more stability and are easier to manage. But on the other hand, short-term rentals can yield higher revenue, provide more flexibility, and result in less wear and tear. There are definitely risks in either one. But the best choice ultimately comes down to what factors you prioritize.
If you decide that short-term rentals are what’s best for you, BeyondBNB can help you get started with your Airbnb business. With our free training, you can find out how to generate wealth with Airbnb and more. Join us at our next free training event so you can find out how we've helped hosts increase their earnings by up to 112 percent. Secure a seat now!