If you're a homeowner getting ready to move, you might be considering renting out your current home instead of selling it. A short-term rental (STR) is typically provided as an alternative to a hotel and has grown in popularity recently as a form of investment. A Harris Poll study found that 28% of homeowners were considering using a rental service to temporarily rent out their property in order to generate extra income.
Although owning a short-term rental can be an alluring idea, you might find that managing one is more challenging in practice. Here are some difficulties you might encounter if you decide to rent out your home rather than sell it.
There Are Duties Associated With Short-Term Rentals
It takes effort to successfully own and rent a home. Consider whether you can keep that promise, particularly if you intend to use a platform that advertises your rental listing. The majority of them have specific requirements that hosts must fulfill, and it is labor intensive.Are you capable of performing some repairs yourself and handy? If not, do you have a list of reasonably priced contractors you can contact quickly? Think about whether you want to hire a third party to handle things in place of hiring a landlord, which entails additional responsibilities like tenant screening and handling complaints.
Can you also handle renting your home to rude visitors, theft or damaged property, complaints from neighbors, and potential regulatory violations depending on your location are risks associated with hosting?
Before making the decision to turn your home into a vacation rental, there are many factors to take into account. It might be better to sell if you aren't prepared for the work involved.
It's a good idea to do your research and find out how much local rentals typically cost, how much business they receive annually, and how this compares to your objectives. You shouldn't make the decision to turn your house into a short-term rental without doing your research first. Speak with a local real estate expert right away to determine whether selling your home is a better option.