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Are You Better Off Short Term Renting or Selling Your Home?

If you’re ready to move and you own your home, you might think about renting it out instead of selling it. A short-term rental is a place people can stay that is not a hotel. It is an investment that has gotten more popular in recent years. According to a Harris Poll survey, 28% of homeowners have considered using a rental service to temporarily rent out their home for extra money.

Taking on the responsibility of a short-term rental may seem appealing, yet you could face several obstacles if you choose not to sell your home. Here are some of the challenges that come with renting out your house instead.

If you’re considering becoming a short term rental host, it’s important to be mindful of the responsibilities that come along with this venture. Being an effective owner and renter requires dedication and hard work; if you plan on utilising a platform for advertising your listing, make sure that it meets all of their particular requirements as well. As Bankrate recently noted in an 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.”

Although there are undoubtedly the time and financial costs associated with owning a short-term rental, it is equally important to consider any potential risks that could arise in the future. As Investopedia notes:

“Risks of hosting include renting your place to rude guests, theft or damaged property, complaints from neighbors, and potential regulatory violations depending on your location.”

Before you decide to turn your home into a short-term rental, there are many factors that need to be taken into account. If the required effort seems too daunting for you right now, selling might be more practical in the long run.

Your House Might Not Be Optimal for Your Rental Ambitions

Whether or not your home ends up being a lucrative short-term rental hugely depends on the location. If it’s located in an area that is less of a tourist destination, you should likely expect fewer bookings and reduced profits – as suggested by The National Association of Realtors (NAR). So if increasing your income from renting out your property is something important to you, make sure that where your house stands will be able to meet those goals!

“When it comes to the viability of profitable STRs . . . consider factors like location, amenities, and whether the property is appealing. Most people seek STRs in locations where they vacation, so proximity to attractions is important. Likewise, the property should cater to a variety of travelers.”

It is a wise decision to understand the typical rental cost in your vicinity, identify how much business these rentals acquire yearly and then align it with your objectives.

Bottom Line 

Before converting your home into a short-term rental, you must do the necessary homework. If selling your house is more fitting for you, don’t hesitate to reach out and let’s have a conversation!

Contact us now!

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