Airbnb is changing more than just how people locate places to stay. Many people purchase vacation homes with the intention of renting them out as short-term rentals during peak tourist seasons.
We can attest to the fact that the numbers build up in our personal and professional lives. According to a recent poll of homeowners who rent out their homes on a prominent internet platform, 70% of respondents claimed rental revenue could cover more than half of their mortgage.
Owners frequently argue over whether long-term or short-term rentals are the best option. Short-term rentals generate more revenue, but they are also more expensive to run than typical rentals, due to the cost of cleaning, laundering, and restocking toiletries, as well as the requirement of outfitting.
Short-term rentals were previously too inefficient to justify the cost. You’d have to advertise in a local newspaper or through a management firm, which presented two issues: the advertisement was yet another expenditure, and the advertisement’s limited geographic spread meant you couldn’t reach potential tourists and get bookings. As a result, long-term rental was the only viable choice.
Short-term rentals are currently gaining popularity, however. Travelers may now lodge in a full-sized house with a kitchen, numerous bathrooms, a patio and backyard, and more for the price of a regular hotel room. Even houses that aren’t traditionally thought of as being suitable for short-term rental are being converted and performing well.
As an outcome, investment property buyers who might previously have had to settle for a smaller vacation home—or one in a less desirable location—can now afford to splurge on really lovely homes with higher mortgages while still being able to live at the property for part of the year.
If you’re interested in reaping the benefits that vacation rental properties have to offer, then consider the available financing options you are eligible for and look into vacation rental property loans at Optimus Capital.