Rentals are one of the top ways to gain some income in real estate. You can earn passive income from a few properties with the help of a property manager. Or, you can actively help
in keeping your rental maintained and earn income every month.
When it comes to rentals, you have to choose from either long-term, month-to-month, or short-term rentals. Each rental has its set of pros and cons, and knowing what those are can
steer you in the right direction. But, if you want to focus more on short term accommodations, it is good to see how you can earn and how to do it right.
What are Short Term Rentals?
Before anything else, short term rentals are not the same with hotels, inns, lodges, where the rate is on a per-night basis. The same goes for short-term accommodations, but there is a
rule where you have to stay a minimum and a maximum amount of days.
The ordinary stay for every guest is around three to seven days.
These places are usually the choice for travelers who are spending a few more days or a week in a particular location. Compared to booking a hotel, a short-term rental would be cheaper, especially if you are staying there for a week.
Additionally, these places often have everything you need. Besides the sleeping quarters, most rentals have a small or communal kitchen and a living space. Airbnb is an excellent
example of this.
Maintaining Short-Term Rentals
You have to maintain the place and keep it clean and safe for your customers. But compared to monthly and long-term rentals, you need to be more hands-on with these short term rentals.
On average, you need to spend around 30 to 40 hours a month to do the maintenance of your place. You must do the cleaning every time a guest checks out and get it ready for the next
guest.
Since your guests are leaving in a week or so, anything broken should be repairedimmediately, so that your rental is ready for the next visitor. It is also best if you can stay
closer to your unit so your guests can reach you at any time for probable issues.
That is far different from monthly and long-term rentals, where the tenants typically take care of the general maintenance of the space.
Can You Earn from Short-Term Rentals?
Perhaps the most crucial question every landlord is asking is whether they can earn from short-term leasing?
With the right formula, you absolutely can. Although it does not take as much work as running a hotel, you do need a good solid plan and some reasonable rates to earn good
money.
Typically, the average rent per night is $135 to $185 per night, depending on how big the place is and the amenities that you offer. In perspective, a night at a hotel could cost $250,
and these are commonly three-star hotels only. If you want a bigger space, say a presidential suite, the nightly cost could easily be valued around $860.
Since it is a cheaper solution, guests would want to stay in short-term rentals, giving you some extra income even when you stay at home.
