Recently our team has been getting a lot of questions about short term rentals. Today I just want to talk to you about a few important things to consider before you get started.
Make sure that you know your local laws for your Short Term Rental
You must know the rules and regulations about owning a short term rental and make sure you have the proper permits. And please, please, please be a part of the community. Make sure that you’re involved in local events and that you support small businesses as much as you can.
My husband and I lived just down the street from our rental for many years, and we make it a point to stay involved and make sure that we’re buying products from local businesses when we can.
Know That You Are In The Hospitality Business
Also, guys, before you buy a short term rental, make sure you realize that you are in the hospitality business. You are creating an experience for everyone that stays at your property, and that requires a team that requires a lot of work, a lot of effort, and a lot of working together.
Build Your Team
Managing a short term rental is a lot of work. In order to maximize your efforts, you’re going to need a great team. You’re going to need cleaners, designers, stagers, contractors, a good realtor and a good lender just to help you evaluate the property even before you buy. Check out this list of what roles constitute great team.
***MOST IMPORTANTLY, MAKE SURE YOU HAVE AN AMAZING PROPERTY MANAGER WHO WILL RESPOND QUICKLY TO ALL MESSAGES, BOOKING REQUESTS AND WHO WILL SOLVE ISSUES ON THE SPOT. YOU CAN START BY SELF-MANAGING BUT I RECOMMEND HAVING A PLAN TO PASS THE TORCH AFTER YOU’VE LEARNED THE ROPES. IT’S DIFFICULT TO SCALE IF YOU’RE MANAGING MULTIPLE PROPERTIES.
Make Sure The Numbers Work
Make sure that it’s a good buy for you. There are so many different loan products that you can use when buying a short term rental, and you need to be able to measure the property against your investing goals and what you’re aiming for. So when you’re evaluating the property to make sure that it’s a good fit for a short term rental, there are a lot of tools that you can use and a good realtor can help point you in that direction.
There are things that you’re going to have to account for that you don’t have to account for with a long term rental. You’re going to need to fully stock and furnish the property. So you will need a fully stocked kitchen, extras like coffees, anything that you want to provide for your guests. You need to account for these kinds of items when you’re purchasing your property.
Before you start running your short term rental, make sure that you’ve evaluated all expenses, all the costs for utilities and everything it will cost to replenish the cost of your cleaners and the cost of any other maintenance or upkeep.
Overall, you just want to be sure that this purchase is fitting your lifestyle goals and your investing goals. Make sure that you’re going to earn enough money to pay off your mortgage, if you’re getting financing, in a timely manner.
Enjoy Your Rental
And make sure that you yourself are able to enjoy the property. What I really love about short term rentals is that you are buying an asset that’s going to benefit your entire family.
Short term rentals can add so much value and joy to your life if you’re up for the challenge. And of course, if you’re up for the challenge, feel free to give me a call.
