It’s not out of place to research to find the best places to buy short term rental property before investing in it. That’s because it’s essential to know the potential of a locality before purchasing a house there. A study showed that the short term rental industry is snowballing and should be worth almost $200 billion by the end of 2023.
That’s one significant reason why people are now more drawn to the vacation home scene than ever. The COVID-19 lockdown period and everything that happened in 2023 has made people understand the value of holidays. That means more people need places to stay when they’re away from home, and most of them opt for short term rentals.
Short Term Rental Markets
Want to hear some good news about buying a vacation home? It’s not only for big-time investors. Anyone can purchase such property, and the beautiful thing is you get to enjoy using it whenever you want. That means the house doesn’t necessarily have to be a five-star lodge or cabin, as we can see from Airbnb’s. Thus, the best short term rental markets have diversity.
One thing that attracts people to these rentals, besides the homeliness, is their affordability. That won’t be possible if they’re all expensive properties. So it’d help if you considered every possible angle before buying such homes. You can find a comprehensive list of the best places to purchase these properties at https://theshorttermshop.com/vacation-rental-property/.
Things to Consider
There are certain elements or characteristics you must pay attention to before buying short term rental property. That’s because they influence renters’ influx and the overall profit of your investment. We highlighted eight such concerns, and we’ll discuss them below.
1. The Right Location
Location is one of the vital things to consider when looking for vacation rental properties for sale. It involves conducting appropriate research and learning from people with experience. For example, you can quickly think of Miami for beach houses, but other places have more exquisite beachfront homes. So ensure that you pick the right place.
One of the hottest short-term rental markets in the US is Florida. Check with ZFC Real Estate in Boca Raton to see the latest inventory
2. The Type of Home
Most people don’t realize that no rule says a short-term rental must be a vacation home. Granted, it’s a general misunderstanding, but the truth is that someone may need a place to stay for various other reasons. So when you want to buy a property, know that it doesn’t need to overlook a lake or beach somewhere.
3. Your Target Market
Your target market is the ideal customer or renter you wish to have once you open up the house. Identifying that is essential because it helps you put certain things into perspective.
For example, if you expect your property to attract people on their honeymoon, it must be in an environment couples would love. That also requires you to tailor the place to be desirable to such people.
4. Expected Income
Beyond checking for the best places to buy short term rental property, you should also figure out your expected income. Even if you don’t rent the place out all year round, you must know the home’s earning potential. That involves doing some research, and you must also factor in the different seasons and popular events in the locality.
5. Costs and Expenses
The first significant cost is the price of purchasing the home, and there are ways to check. You can contact sellers like The Short Term Shop or check their websites. Besides that, there are other expenses you might incur, especially if the property needs fixing. After that, you’ll also need to consider maintenance costs and get specific licenses and insurances in place.
6. Operational Procedures
Operation and upkeep are crucial for short term rental properties because the renters aren’t there for long periods. That usually includes property management, booking procedures and any other obligations.
You must determine if you’d be in charge of the home, or you have to hire a property manager. Either way, ensure there’s a system that enables smooth running.
7. Legal Obligations
Nobody wants to ever end up on the wrong side of the law, especially when dealing with renters. Therefore, understanding all the necessary regulations, whether local, state or federal, is essential.
That’s because it ensures you know your customers right on various issues and helps set a limit. It’s also advisable to get landlord insurance to cover specific eventualities.
8. Listing Options
Renters also look for the best websites and platforms to use the same way you’d look for the best places to buy Airbnb property. That knowledge should influence your choices of where to list your home for rent.
There are numerous sites for this purpose, but you must ensure that wherever you advertise puts you in front of your target market or guests.
Some Essential Tips
Now that you understand the essential things to consider, you’re good to go. However, some points need emphasis because of their importance. So to achieve that, we’ll give you some valuable tips to help put your short term rental in the best possible position.
Conduct Enough Research
You can’t conduct too much research when it comes to investments. That’s because it involves risks that you can’t afford to undertake without adequate consideration.
To find out enough about the short term rental market and the property that snags your interest, get industry information by listening to relevant podcasts and reading current blogs and magazines.
Do Great Marketing
There’s a high risk of having your property unoccupied for an extended period since each renter is only there for a short time. That’s why it’s crucial to market your rental home right.
It’d be best to consider your target guests and the qualities or amenities that attract these people. It’ll help you know the characteristics to emphasize and ensure you get the customers.
Ask for Feedback
The short term rental business is customer service of sorts, so renter review is crucial, especially in the beginning. Asking for feedback helps the clients think honestly about why they did or didn’t enjoy staying at your home. That gives an idea of what to improve, remove or focus on subsequently and build a better experience for others.
Finding the best places to buy short term rental property can be daunting without the correct information. Hence, it’s essential to consider vital factors and prepare adequately for the opportunity before buying the home.