Short-term rentals have become all the rage in recent years. Thanks to the rise of the sharing economy, it seems like you can rent just about anything for a short period of time. This also helps save a few bucks and stick it to the establishment, otherwise known as hotels and taxicabs.
Whether you own an apartment complex or a duplex, you may be considering placing some of your units on the short-term rental market, which helps pay the mortgage or energy costs.
In today’s world, people don’t want to commit to something for an extended amount of time. Business professionals who are situated in a city for a month or two, students who need a place to stay for a semester or globetrotters who visit places for a few weeks at a time, there are multiple ways property owners can take advantage of the short-term rental trend.
As long as you properly prepare for this new commercial endeavour, you will survive and thrive.
Here are five short-term rental tips for landlords:
1. Budget for Some Extra Costs
Should you have another person in your primary living residence or someone renting your basement, you will need to budget for additional costs. This may consist of everything from extra hydro expenditures to food costs (this is one way to attract tenants). Whatever the case, it is always important to budget – and you will master this aspect the longer you rent out rooms.
2. Take Advantage of Digital Services
The online world has provided us with a plethora of services that make life a bit easier. For instance, Airbnb or Rent a Room connect you with prospective short-term tenants.
Instead of relying on websites like Craigslist or Kijiji, where there is very little accountability on either side, you should utilize web portals that specialize in the short-term rental market.
3. Pay Attention to Seasonal Events in Your Area
One of the best ways to make money from renting out short-term accommodations is to pay attention to seasonal events happening in your area.
As an example, there was the Caribbean Carnival in Toronto this past summer, which draws in tens of thousands of tourists to the city. Since this is a three-day event, there will be an uptick in demand for short-term rentals. Why not advertise your units to these guests?
No matter what the seasonal event is – Pride festivities, Christmas or a weekend of professional wrestling shows – you need to market your rooms or suites to these attendees.
4. Determine What Type of Tenants You Want
At first, you will welcome anybody into your home or building. You want to build up a reputation, earn a few bucks and ensure you have some tenants. However, as time goes by, you will be able to weed out the good, the bad and the ugly.
You may have had terrible experiences with students, while you have had tremendous experiences with 35-year-old business professionals. Moving forward, you may refrain from taking in university students and instead focus on businessmen.
5. Get Ready for the Future
This may be difficult to achieve, but you should always be planning ahead to minimize vacant periods. It is true that locating a new tenant to fill out slots can be hard to do, but it should be your goal that your spare rooms are constantly filled up throughout the year.
Simply put: once a tenant leaves, you need to have another one ready to move in.