Hello homeowner! If you are thinking about making a move, you may be debating the options for your current home. Should you rent your house or sell it? The short-term rental (known as an STR, think Airbnb or Vrbo) option has gained popularity in recent years. In fact, a whopping, 28% of homeowners have considered this opportunity.
While this can seem like a no-brainer and is a super tempting idea, the reality (yes, that ole buzz kill) of the responsibilities associated with short-term rentals can be difficult to take on. Let’s take a look at some of the challenges you could face, to help you decide which option is right for you.
A Short-Term Rental Comes with Responsibilities
Remember our old friend reality? They are back! While owning a short-term rental (or any rental) sounds like it would be easy-peasy, it does take work. Think of it like a business — there are listings, advertising, requirements to meet and more. You will need to be prepared to make repairs (sometimes in a pinch), screen possible tenants, and communicate with renters. You can always hire someone to do this for you, though communicating with them will still fall to you.
If you are all well and good with the responsibilities (high five for being amazing), you must also consider the risks. Rude or destructive guests, complaints from neighbors, or the simple fact that where you live has rules or laws against short-term rentals are here to rain on your parade.
Phew! There’s a lot to consider when debating if the rental path is the way for you to go. If you’re thinking you aren’t ready for the responsibilities, then selling it probably your go to.
Your House May Not Be Ideal for Your Rental Goals
Okay, friend, let’s say you are all set with the responsibility and risk portion of having a short-term rental. Wonderful! The last piece you need to slide into place is whether or not your house is ideal for a short-term rental.
While folks rent in all locations — some remote, some urban — your home may not end up being a profitable short-term rental. If you are located in a travel destination, such as, just an example, Las Vegas, you will have a higher request for your property. On the other hand, a more rural setting may have fewer requests and impact that ever present bottom line.
So like a good student, it’s smart to do your homework. Learn how much rentals in your area go for, how much business they get throughout the year, and how this compares to your short-term rental goals.
Converting your home into a short-term rental isn’t a decision you should make without doing your research. Should you rent your house or sell it? To help you decide if selling your house is a better alternative, let’s connect today.