As a homeowner contemplating the next steps, you might have considered turning your house into a short-term rental rather than selling it. In the age of platforms like Airbnb, the allure of short-term rentals (STR) has never been stronger, as they often serve as more personalized hotel alternatives.
However, while the idea might sound appealing, the responsibilities associated with managing a short-term rental might not be everyone’s cup of tea. Below, we delve into the potential challenges of renting versus selling your home.
The Demands of a Short-Term Rental
Successfully overseeing a short-term rental property isn’t a walk in the park. From handling reservations, coordinating check-ins, to ensuring that the property is clean, landscaped, and well-maintained, the responsibilities can be daunting.
With guests coming in and out frequently, STRs face higher turnovers. Consequently, your home may experience increased wear and tear, requiring you to frequently replace or repair furniture, fixtures, and appliances.
An insight from Bankrate provides some perspective: “Owning a rental property is akin to running a small business. Can you handle minor repairs or do you have reliable contractors on speed dial? Reflect on if you wish to bear the landlord responsibilities, from vetting tenants to addressing concerns, or if you’d prefer a third party to manage these aspects.”
Converting your home into a short-term rental demands time, dedication, and effort. If it sounds too overwhelming, perhaps selling is the more viable route.
Understanding Short-Term Rental Regulations
The STR industry’s rapid growth hasn’t gone unnoticed by regulators. Many locales have imposed restrictions on the number of vacation rentals, especially in major cities and prime tourist hotspots, to prevent housing crunches for locals. There may also be specific property types that are sanctioned for short-term leasing.
Moreover, many jurisdictions now mandate homeowners to acquire permits or licenses before they can rent out their homes. As Nick Del Pego, CEO at Deckard Technologies, elaborates:
“For most municipal bodies, running short-term rentals equates to operating a business. As such, homeowners must adhere to the unique workplace guidelines and business licensing protocols set by their localities.”
It’s imperative to diligently assess whether your local government or homeowner’s association (HOA) has any restrictions on short-term rentals before embarking on this venture.
Turning your home into a short-term rental is a significant decision that warrants thorough research and introspection. If you’re oscillating between renting and selling, reach out, and let’s discuss the best option tailored to your needs.