People who are looking for smart ways to invest their money and to receive a fast and substantial return on their investment are buying into a short-term rental property. They buy homes, which are usually vacation homes, with the intention of renting these homes out throughout the year on short-term leases. There are other types of short-term rental properties. For example, you may buy an apartment in a busy city like New York, and rent it out to companies for visits from out of town clients. But, in this article, we will focus on the rental used for short-term residential needs or vacations.
Is this a smart move?
We are sure you have read horror stories about short-term renters. People who have failed at their financial venture probably faced late rent payments, expensive evictions, property damage, and other problems that cost them plenty and sent them running from the industry. These things can and do happen every day to those who do not take the time to enter this field with the knowledge and assistance they need to protect their investment.
Here are a few tips that are not just important, they are critical:
- You will have to put some effort into getting the investment in order and self-sustainable.
- You need a professional management company.
- A professional management company like Rentbelly is not going to cost too much, and many fees come directly from the renters.
- In the age of technology, you cannot trust yourself to make sure the people you are speaking to are honest people who will honor their contract.
Must do list for the property owner
- Have your property professionally inspected for signs of problems. This includes:
- Signs of rodents, insects, and pests
- Have a contract with a pet control company to keep it in order
- Signs of rodents, insects, and pests
- Inspect the roof, pipes, plumbing, and HVAC unit.
- Have the walls freshly painted.
- Have the carpets professionally cleaned.
- Deicide in advance if you will hire someone to keep the landscape in good condition. (This is recommended.)
- Check with the local government regarding any rules that prevent or limit the amount of time a short-time renter can stay.
Many property owners already have short-term leases. They used Airbnb to help them lease the property. That is fine. Rentbelly works with Airbnb clients regularly. They will help you draft a sound and detailed lease that will protect you. They will conduct an open meeting advising your tenants of amendments and have them sign the paperwork.
If you have not released yet, they will help you get started correctly.
Rent Belly monitors your property. They stay on top of changes in any codes that will change your agreement. They collect your money and deposits it in your bank. You have 24-hour access online. You will receive daily, weekly, or monthly reports on the compliance of your agreement. This helps you prevent any issues before they become big problems.
Everything is handled in a respectful, low-key manner. Property owners, short-term leases, and contractors are handled with the highest respect. It comes down to this. You want good people who respect your property and pay on time. Renters want privacy, and a comfortable place to relax and vacation.
Meticulous records are kept. This includes photographs of the property, inside and out. There s the original lease, inspection and maintenance reports and any complaints that the renters may have reported (as well as the resolution.)
High return on your investment?
If you handle your short-term rental properties correctly, there is a very good return on your investment. There are good people in the world. It is the “not so good” people who have blemished this industry. But, that does not have to happen to you.
Many experts say there is good money in short-term rentals. But, you have to do your homework. Know where to buy. Consult professionals about the area. Expect to have some expenses along the way. Be smart with your investment and you will make money.