There was once a time when hotels and motels were the only options for short stays in an unknown town. While the hospitality industry enjoyed booking a room for 10 days or longer, it was not very feasible on the pocketbook. The option of short-term rental is becoming more widely used in our mobile society. Here are a few reasons you should look into leasing to visitors on a month-to-month basis as opposed to setting longer agreements.
Not everyone knows what the future holds. Forcing someone to sign a lease due to a move to a new city and a new job could prove disastrous if a job offer falls through or the pay was not what was promised. Way too often we see employers changing their minds at the last minute with no regard to the lives that have been uprooted.
Throwing thousands of dollars on renters for a signed lease is the last thing this poor family needs. On the other hand, as a landlord, you know that chances are pretty bad that this contract will be fulfilled, leaving you with no funds. A short-term rental gives everyone a chance to feel the waters in an unsteady society.
Flexibility for Necessary Travel
When a family member or friend finds themselves in need of help, it can be a burden on others to try and help. Add living thousands of miles away and it can seem impossible. From closing on an estate to being with a hospitalized friend, the timeline for a visit may be unclear. Being able to secure housing on a week-to-week basis can be a lifesaver. Finding a short-term living arrangement can be a dream come true for those that have a lot on their plate.
Payment Up Front
Payment in advance from a temporary resident can relieve tight financing. For example, advertising for short term rental in Seattle, Washington, can secure money coming in while waiting on a 1-year lease to materialize. Then you are tied to a month-to-month payment arrangement which may or may not materialize without incident. In fact, you may find that this type of renting is far more attractive than long-term leasing.
Better Control on Maintenance
When there is a long-term lease, it is essential that you respect the privacy of tenants. This can often leave you at a disadvantage of the condition of your rental. If you weigh the time factor from one week to one year, or longer, you will find that being able to maintain a short-term lease will give you greater access and improved maintenance as opposed to long-term. Better control of being able to access property is a plus to better control.
Short-term rentals can easily be turned into vacation rentals if there are attractions for travelers. Vacationers are always looking for something new and exciting, apart from their hum-drum lives. What may seem boring to you can be exciting to someone else. Use these angles to lure short-term visitors to your properties and discover how cost-effective it can be. Always check with the terms of your area to make sure that there are no stipulations on what is considered vacation rentals and short-term rentals. Some high vacation areas enforce certain codes.
Your Rules, Your Way
Long-term leases involve lengthy contracts and sometimes ugly terminations. Short-term rentals have proven to give the landlord the ability to create their own rules and pricing. Offer as much or as little as you are comfortable with. From kitchenettes to laundry facilities, the incentives are up to you. Being able to adjust the terms of your property is much easier on a short-term arrangement than those made on a long-term contract.
The bottom line is that leasing on a short-term basis is much more cost-effective than offering property for a one to two-year lease. While receiving $1500 per month on a long-term lease may sound tempting, a short term stay can bring in twice this amount. From the renter’s point of view, it is still less expensive than staying in a motel that cannot offer services that your property can. Weigh the pros and cons in your particular area and determine if short-term leasing is right for you.