The Reasons Why More & More People are Listing Their Properties For Rental on a Short-Term Basis
Back in the day, there was mostly only one choice to get any income on your property. Either you were selling it, or renting it out on a long-term – more than thirty days. But a lot has changed since then. Sharing economy or shared consumption has changed the game. While it has always been around, the growth and proliferation of the internet and smartphones have made it prominent. Share economy platforms encourage and are better enjoyed on short-term leases. A popular example of a share economy platform for the property market is Airbnb.
Airbnb is a “peer-to-peer” platform that provides properties for potential travelers with access to accomodations. For those booking properties, a place to rest their weary heads in a nontraditional setting of hotels and resorts. While it helps Business Traveler and Leisure Traveler as they are called make profits off of their properties during periods they would have otherwise been vacated. A win-win situation for both parties, and the arbitrage of the meeting Airbnb. And that is the first reason people like the short-term listing encouraged by sites like Airbnb. Furthermore, because you can control prices, according to demand, you could make more money using short-term leases than long-term, especially when you play your cards right.
Another reason people are favoring the short approach of the sharing economy is the flexibility it allows – you can manage it yourself when you can, or engage a Short Term Property Management company when you can’t. You are no longer committed to an “abusive” relationship that isn’t working, just because tenants have paid for long-term. Another thing this helps you do is to keep up your apartment regularly, as they are no longer at the mercy of someone who will perhaps not care if everything deteriorates. This works best for hands-on people who like to micromanage things and keep things under control.
Short term lease also plays into the strategy of sites like Airbnb. The more clients you get, the more reviews you can get. Reviews build your brand on the sites. And when I say reviews, I mean 5-star reviews. Having a great apartment is not enough, people have to trust what they are paying for. And this goes both ways too; you can check the reviews of people you’re hosting before accepting them. Giving property owners a measure of calm regards risks.
Listing your property on Airbnb has its pros and cons. To make sure you cover your basics and avoid risks, you need to be smart, committed and strategic. If you want to know more information about Short Term Rental, please click Here and we will contact you shortly to answer any questions.