Nearly one-third of homeowners who are ready to make a move contemplate using their current home as a short-term rental for additional income. A short-term rental is an alternative to a hotel, such as an Airbnb or a VRBO, and they have gained a lot of popularity in recent years.
While it may be a tempting idea to convert your home into a short-term rental, the reality of the responsibility and challenges may be something you want to consider. Most short-term rental platforms have a list if specific requirements that a host has to meet, and managing these requirements can be time-consuming and challenging.
For example, are you handy (and available) enough to make repairs on your own? If not, you’ll need a network of trusted and affordable contractors that you can reach out to in a pinch. Also, are you prepared to be a landlord? This means screening tenants and fielding issues, or paying for a third party to take care of these things for you, thus eating into your profits.
Also think of what you’ll do in the case of rude guests. What about theft or property damage? Complaints from neighbors? There are a lot of things to consider, and even if you have already considered all these things and still want to take the leap, you need to think about if your house is even an ideal rental property.
One of the biggest factors in having a successful short-term rental is the location. Are you located in a highly popular travel destination? Is your home near popular attractions, with easy access to highways? What about your home’s amenities? Your home will need to cater to a variety of travelers, so keep that in mind as well.
The bottom line is that converting your home into a short-term rental isn’t a decision that you should make without doing a good deal of research. If you ultimately decide that the landlord life is not for you, then consider selling the property instead. Either way, working with a trusted real estate professional should be the first step you take for whichever direction you decide.