Do you have a spacious pool house that would be perfect for a vacation getaway? Perhaps you have thought of listing it on HomeAway or Airbnb to get some income from your real estate investment. Rather than being a passive way to make money, renting property on a short-term basis takes plenty of planning and active management. Here are some other things to consider about a short-term rental enterprise.
Is your location in demand?
The last thing you want to do is go to the hard work of setting up your property for short term rentals and not get any business. You should first consider if there is likely demand in your area for a short-term rental of your type before you do anything else.
If you live in or near a major city that gets a variety of visitor traffic throughout the year, there is a good chance of steady demand. Identify popular tourist attractions and scenic areas that are near your property that would make people want to come and visit. Look at existing property listings in your area and see how often they get booked.
Check your municipal laws
Are short-term rentals legal in your municipality? Many cities in Florida have restrictions on where this type of rental can be located. Before you do any preparation of your rental space, you will want to make sure your property’s location is legal for this type of rental.
Get marketing savvy
Take some high-quality pictures of your property, highlighting what is unique about your lodging. Give the prospective renter an idea of what they can do while visiting, such as swimming at a nearby beach or walking to nearby shops and eating at gourmet restaurants nearby. Use the power of social media to engage with both prospective and satisfied customers.
Consider property management
If the ongoing hosting duties become too much to keep up with yourself, you may want to consider hiring a property management business to handle some of the day to day operations of your rental. Getting extra help will be a tradeoff as you will have less income from your property.