OnCourse Learning article offers strategies for short-term rental success.
As vacation home rental companies like Airbnb and HomeAway grow in popularity, real estate agents have the opportunity to get in on the short-term rental business. In a recent article for OnCourse Learning Real Estate, real estate professionals discussed viable strategies for riding the wave of short-term rentals.
What makes short-term rentals so popular?
According to “Is the vacation rental market right for real estate agents?” customers like short-term vacation rentals because they may cost less than a hotel and can provide a more immersive experience. They also provide more options for vacationers because daily rentals range from single rooms to entire house rentals, resulting in far more revenue for owners than traditional renting.
“Profitability can run the gamut depending on creative strategies to implement short-term rentals in the real estate professional model,” Richard Gallegos, DREI, CDEI, OnCourse Learning Education Manager for Real Estate, said in the article.
“For instance, some licensees have found success in recommending their clientele, who are considering buying a place in specific neighborhood take a test drive by using a short-term rental for a few days to see if they like the area,” Gallegos said in the article.
Challenges of short-term rental ownership
Although short-term rentals can be lucrative, managing them requires work, according to the article. For example, the article noted, there could be multiple turnovers in a month for one property, which means cleaning the property, washing linens and checking guests in and out in as many times.
“It’s always best to have a property manager anyway because some states hold you liable from your license perspective if you’re representing yourself,” said Dawn Thomas, CLHMS, CIPS, a broker associate with Sotheby’s International Realty in California, who has been in the short-term vacation rental market for 15 months.
Read more tips from Gallegos and Thomas on thriving in the short-term rental market — including what things to consider before purchasing a short-term rental property and issues to review before moving into this niche marketplace — here.