If you’re a homeowner needing to move, you may have considered using your current home as a short-term rental or Air BnB property rather than selling it. A short-term rental (STR) is often offered as an alternative to a hotel, and it’s become a popular investment in recent years.
While a short-term rental may seem appealing, the reality of being responsible for one may be tough to accept. Here are some of the issues you may face if you rent out your home rather than selling it.
Responsibilities Come with a Short-Term Rental
It takes a lot of time and work to successfully manage your residence as a short-term rental. You’ll have to deal with reservations, organize check-ins, and handle cleaning, landscaping, and maintenance jobs. Each of these can be taxing on its own, but when combined, it’s a lot to handle.
Because new guests check in and out regularly, short-term rentals have a high turnover rate. Because of the increased wear and tear on your property, you may need to make more regular repairs or replace your furnishings, fixtures, and appliances more frequently.
Consider your ability to commit, particularly if you intend to use a platform to publicize your rental property. The majority of them have certain standards that hosts must meet. According to a Bankrate article:
Managing a rental property can be time-consuming and challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable contractors you can reach out to in a pinch? Consider whether you want to take on the added responsibility of being a landlord, which means screening tenants and fielding issues, among other responsibilities, or paying for a third party to take care of things instead.
There are numerous factors to consider before converting your home into a short-term rental. If you are not prepared to put in the effort, it may be better to sell.
Regulations for Short-Term Rentals
As the short-term rental sector expands, so do the restrictions. Limits on the number of holiday rentals in a specific place are regular legal restrictions. This is especially true in major cities and tourist areas where there may be concerns about overpopulation or a lack of permanent housing. There may also be restrictions on the type of property that can be utilized for short-term rentals.
Before renting out their properties, many cities require landowners to obtain a license or permit. Deckard Technologies’ CEO, Nick Del Pego, explains:
Renting short-term rentals is considered a business by most local governments, and owners must comply with specific workplace regulations and business licensing rules established in their local communities.
Before considering renting out your house, you should extensively investigate if short-term rentals are regulated or restricted by the local government and your homeowners’ association (HOA).
Summing It Up
Converting your house into a short-term rental is not a decision you should make lightly. Get in touch with us if you have questions about whether or not you should sell or rent out your house at (404) 410-6465 or visit Complete Realty Team.