Is a Short-Term Rental the Right Investment for You?

Is a Short-Term Rental the Right Investment for You?

  • Denise Graves
  • 07/8/24

Learn the details on whether a short-term rental is right for you.

With summer in full swing, many people are considering short-term rentals—either to rent or possibly to buy as an investment. If you're asking yourself, "Should I buy a short-term rental as an investment?" you're not alone.

Real estate is a solid investment. Many people stay in a short-term rental during a great vacation and think, "This is so nice and cute, we could make so much money doing this!" But it's essential to talk to others who own short-term rentals to truly understand the commitment involved.

First, you'll need a real estate professional to help you evaluate potential properties. It’s important to ensure the area isn't oversaturated with short-term rentals and to understand the seasonal demand. Some areas might be booming in the summer but see minimal bookings during off-peak months. You'll need to determine if the potential profit is worth it or if the property could serve your family's needs during the off-season.


"Owning a short-term rental involves significant work."


Owning a short-term rental involves significant work. You must decide if you have the time to manage it yourself or if you'll hire a management company—another added expense. The setup costs are higher than long-term rentals since you need to furnish the entire home, including linens, dishes, and towels, which will need frequent replacement.

Despite the challenges, owning a short-term rental can be rewarding. My husband and I own a couple, and we appreciate the flexibility and the opportunity to take inexpensive family vacations. We check our calendar for openings and do a little maintenance while enjoying our stay.

In conclusion, short-term rentals can be a great source of additional income and diversify your investment portfolio. However, it's important to weigh the pros and cons of short-term versus long-term rentals. Make sure you fully understand both before making a decision.

If you have any questions, feel free to give us a call! We look forward to hearing from you!


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