Many people have turned their homes and properties into short-term rentals. With many different hosting sites, the most popular being Airbnb, more and more owners have taken advantage. These are often people who aren’t landlords and don’t own many properties. Instead, they’re looking to make some extra money.
Maybe you’re considering renting out your home or part of your home for a short-term rental. Perhaps you’re moving to a new area and want to keep your existing home and think renting it out could be good passive income. Or, maybe you’re looking to invest in a second property and wade into the waters of rental properties.
If so, here are the things you need to consider.
Consider The Work That Goes Into It
Renting out any property can be more work than you’d think. While it might seem like an easy way to make money, it’s not entirely hands-off. You’ll need to do things like manage the renters, keep items stocked, and perform any maintenance.
However, you can mitigate some of that stress and time by hiring a property manager to do some of the work. Just be aware that you’ll likely have to do the work yourself or hire someone else to do it.
Look Into The Laws In Your Area
Different cities have different laws about rentals. So, in some places, you can turn your home into a vacation rental and let various people stay there. However, in some areas, you won’t be able to do this.
It’s common for condos or homes with an HOA to restrict renters. So, it’s important to look at your area’s laws as well as any rules for your specific house or property.
Think About The Potential Impacts On Your Property
While renting out your home or any other kind of property can make you money, you’ll also have to think about the ways it could lose you money. Renters, especially if you have quick turnover, can damage your property. Sometimes, renters are uncaring and destructive; other times, accidents happen. So, be aware that you’ll likely want increased insurance to cover potential damages.
Research The Rental Market In Your Area
Even if renting out your property might seem like an overall good idea, you need to ensure that it’s a wise move where you live. In some areas, there might not be much of a market for renting. If there is no demand, it doesn’t make sense. However, if there’s a lot of need for rentals in your area, it’s worth seeing if you could make some money and fill a niche.
Be Clear About Your Policies
If you decide to turn your property into a short-term rental, be aware of the rules you want to outline for your renters. Of course, you’ll need to ensure you’re following laws related to tenants, but other than that, you can establish your terms.
Set clear boundaries and have people sign a contract. You’ll want to be very firm about things like pet policies, parking rules, and more.
So, Should You Rent?
Overall, there are pros and cons of renting out your property. Just like with any way of making money, you’ll need to weigh the benefits and the drawbacks. But, if it makes sense for you and your specific situation, renting could be an excellent choice.