When comparing any two investments, there are always pros and cons. This is no different when it comes to long-term and short-term rentals. So what are the pros and cons of short-term Airbnb rentals? Continue reading to find out, as well as some helpful tips when it comes to dealing with short-term rentals.
The Pros of Airbnb Rentals
- The potential for higher profits
- Relying less on long-term tenants
- Advertising on Airbnb will take less effort on your part to get your property rented
The Cons of Airbnb Rentals
- Higher upfront costs for things such as furnishings and decorations
- The potential for higher operating costs
- Less security than conventional rentals due to short-term tenants
- Managing an Airbnb could be like a second job
What Kind of Property is Best for an Airbnb Rental?
An Airbnb doesn’t necessarily need to be a vacation home. Many people use Airbnb for business travel and plenty of other life events that take them all over the country. Potential Airbnb investors should do their due diligence to see what kinds of properties are in demand near where they live.
Do You Need to Live Near Your Airbnb?
The short answer to this question is no. While it’s certainly more convenient to live near your Airbnb rental property, it isn’t necessary. However, if you choose to invest in an Airbnb rental property that’s not near your primary residence, you might want to consider hiring a property manager.
Potential Legal Issues
Each location will have different requirements and regulations for Airbnb properties. Some areas may even require an Airbnb to be a primary residence. If the property is part of an HOA, you might have even more hurdles to have to jump through. These legal issues are things you will have to research about your potential property before jumping in.
An Airbnb investment can be an excellent opportunity for any investor. However, when choosing the right property, the potential legalities involved with each location, and properties potentially being a hike from investors, there might be some hurdles to jump through. Well, that’s where Majestic Vacation Management comes in. We specialize in short-term rental property management. We help investors with every part of the process, from location consulting and home staging to cleaning, landscaping, security, and more. Contact us for more information.