By now, you’ve likely heard of the alternative for staying in hotel rooms for a good night stay, as sites, like, AirBNB have continued to rise in popularity over the last decade. There are now more than 2 million people staying in AirBNBs — alone (not including other short term rental sites). The trend is only expected to rise as more people trust the crowd sourcing model, and as the market continues to develop.
Market Watch – Short Term Rentals
With the short term rental market continuing to develop, many would-be home sellers are now considering alternative options for leasing their properties rather than selling. In the past, those types of homeowners would become landlords and would need to wear the hat of Property Manager. As a Property Manager, the would-be seller then would need to tackle the duties for rent payments/collections, property maintenance (and repairs), and of course, marketing the property which would include an array of similar duties such as: listing the property to attract renters, screening new renters and signing contracts. If all went as planned, the property owner would then be able to collect ongoing payments from renters in order to receive what would become residual income so the renters could start paying for overhead expenses such as the mortgage and home insurance.
This scenario was the best case scenario for many landlords and property investors for many years, until the rise of short term rentals became more popular. Now, with short term rentals, would-be landlords have the option to lease their property to people looking for a short-term lease and earn approximately 2-3x more in earning potential from the same property than they would’ve received listing their property for rent in their local market. The only challenge with short term rentals is: how to ensure a flow of customers which will enable you to earn 2-3x in rental profits than the closest alternative?
Short Term Rental Property Resources
With the rise of the short term rental property market, resources are becoming more and more popular. Coinciding with rising trend, new technology advances such as the rise of home automation tools, enhance the attractiveness of renting your property on a short-term basis while maintaining full-control of your property.
In addition, access to experts such as short term rental property management companies and training programs aimed just for setting up your property for short-term rentals are becoming more accessible to the everyday landlord. Regardless for where your property is located in the United States, there is likely a nationwide market that is considering staying at your property on a short-term basis on sites such as AirBNB and VRBO. It’s all about assembling the right processes in order to maximize your profits from this type of setup with your property.
Outlook for B&B Rentals
The outlook for b&b rentals is promising as more and more people are becoming more accustomed to this type of solution for travel, and the stigma for staying in someone’s house– rather than staying in a hotel– is becoming more commonplace. The homeowners that are able to put together the right processes and teams are the ones that will be able to maximize the profits for renting their homes– rather than selling the home– and these are the people that will benefit from earning 200-300% more profits (and sometimes more!) by renting their properties on a short-term basis.
Have you experienced an AirBNB lately? Do you still feel its better to sell rather than lease your property? Let me know by using the contact form, and I’d love to hear your feedback!