Short term rentals are becoming more common. These rentals may include rooms, apartments or entire homes. If you have spare housing, it may sound beneficial to list your room or apartment for extra income.
Forbes explains that while short term rentals are growing in popularity throughout the country, they also come with a number of different concerns.
Short term rentals have more expenses
Short term rentals can provide you with higher long-term income over time. However, this does not mean that the costs are lower. With traditional rentals, your vacancy rate is lower. You do not have to clean and prepare your property constantly. With short term rentals, you have to invest in cleaning and maintenance more often.
Other costs to consider are that short term rentals are often seasonal. Renters search for short term leases when they are on vacation. This is often during holidays or throughout the summer. There may be times of the year where you do not make a profit.
HOAS and banks may restrict short term rentals
If you are a part of a homeowner’s association, then you need to find out your association’s rules on short term rentals. While many leases are vague, you do need to have one hundred percent certainty that you can rent your property or rooms. Some agreements outright prohibit short term rentals.
Likewise, if you have a mortgage, you will want to speak with the bank before you rent out any part of the property. Some banks will not allow you to rent out your property or a part of the property.