Do you want to increase your 2024 earnings without making a massive change to your work or business inputs? We promise this pitch isn't too good to be true; making money with a short-term rental is becoming more popular today.
Rentals are considered short-term if the rental period is shorter than six months. This definition is flexible enough to allow property owners with varying preferences and properties to cash in on vacationers and seasonal workers.
If this interests you, there are three key details to consider before renting your place out. Learn more about them in our quick guide.
1. The Type of Place You Have
If you have an immaculate property with a gorgeous view of the mountains, then finding interested vacationers will be easy. However, this doesn't disqualify other properties from being great short-term rentals.
You may have a spare bedroom ideal for people passing through for work. In Estes Park, this could include photographers and adventurers visiting the Rocky Mountains.
Figuring out which demographic of travelers your place would be best for helps you hone your marketing. This can also help you determine which times of the year would be best to prepare for visitors (i.e., go on vacation yourself and rent your house out).
You don't have to worry about your property if you have the right property management agency. We take care of tenant screening, maintenance, and checking guests in and out. Full-service vacation management can keep your home in order while you're away or if you're too busy to take up the extra work.
2. Short-Term Rental: Rules, Laws, and Regulations
A property can only be rented out as a short-term rental if short-term leasing is legal in that area. These rules don't only come from the government; HOAs are also allowed to set binding local regulations.
Be sure to consult both the local government and your HOA (if there is one) to see if you're allowed to rent your place out short-term. You should also set property rules for your guests to adhere to local laws (e.g. if there's a special rule prohibiting open fires).
3. The Profitability vs Effort Question
Putting maximum effort into giving renters a great experience will get you better ratings. Better ratings, in turn, generate more interest in your property. However, more effort means more time.
You have to consider how much time you're able to spend managing this side business and weigh that opportunity cost against your revenue. This will show you the enterprise's true profitability.
Getting full-service management is an excellent option if you want great reviews and a stable income at relatively low costs (in terms of time and money).
Let Your Property Work For You
Availing your property as a short-term rental is an excellent option if you have the capacity. Short-term rentals earn more nominal rent due to the nature of the business, and they allow you to manage your property much more closely.
To see if your property would work, check if its layout and location work in the short-term market. Also, be sure to stay in line with local laws and have a good business plan going in.
PMI Estes Park is the number one property management firm in the area. Get expert help today with laws, business models, management schemes, and more!
