We all must have heard about the ‘short-term rentals’ in a newspaper or on channels, but what it is all about. Short term rentals mean renting out your well-furnished home, small space or apartment for vacations or trips on a short-term stay. These days, short-term rentals have become the most trending and hottest new sector in real estate. These rentals are considered the best and lucrative way of real estate investments as they help in making an excellent rental income in the very fast way. But, every investor has some questions about short-term rentals such as Is buying a short-term rental lucrative? Is it a good rental strategy? SmartOwner`s recent blog post is the perfect way that can give you suitable answer to your all questions, so keep on reading.
Short term rentals offer a huge number of benefits to the investors in terms of money generation. Along with this, there are many other advantages that are associated with the short-term rental property that makes it a trending new sector in real estate. These advantages include:
The benefit of increased income
One of the major advantages associated with short terms rentals is the generation of steady income. Due to this steady income, investors are showing interest in short-term rentals which ultimately making it a trending sector in real estate. Rentals can be rented out for a few weeks or months to generate increased income.
Earning tax deduction
A short-term rental can help in tax deduction also. Isn’t great!! This applies to the insurance premium, property tax, mortgage payments and many other rental expenses.
Less damage to the property
Short term rentals mean renting your property for a short period for a few weeks or months. Thus, there’s less damage risk to the interior as well as the exterior area of the rented home. There are chances of damage threats to the rental property when it is rented out for more than 6 months or a year.
Dual purpose benefits
A short-term rental investment can serve you in many ways. You can freely use it to spend your own vacations and to spend quality time with your family. For rest of the year, you can rent it out for the travelers, tourists or guests to earn money.
Building value of the property
Generally, the real estate value of any property keeps increasing over time. If you’re in the mood to sell out your short-term rental property, you can easily sell it at a higher price and earn a profit.
Flexibility to the owners
With short-term rentals, you can choose the time to rent out the property as per your convenience. And this is one of the best things as you do not have to bear extra stress on your head.
Having a short-term rental can be very lucrative in terms of income generation, less damage to property, tax deduction and flexibility of the property owners. Owing to all these reasons, investors are tending more towards investing in real estate as shorts term rentals. Thus, short terms rentals are trending as a new sector in real estate.