Key Differences Between Short Term and Long Term Rentals

Posted by on

Short term rentals are furnished, self-contained apartments and houses that can be rented out for short stays such as family vacations or business trips. These rentals are an alternative to staying at a hotel. The popularity of these types of rentals has increased in recent years, with companies such as Airbnb and VRBO making it easier to find a suitable home for your trip. However, there are some key differences between renting out your property as a short term rental and traditional long term rental that need to be taken into consideration.

Generally, local governments set regulations for short term rentals. These regulations include guidelines and safety specifics that homeowners and management companies need to follow. It is essential to stay up to date on these regulations, especially in cities that have strict standards.

In some areas, short term rentals in San Antonio are banned entirely. Others require permits or licenses to operate. New York City, for example, has recently made some changes to the way short term rentals can be operated in the city. The city now requires all hosts to register their properties with the Office of Special Enforcement and limit the number of guests and length of stays.

Some cities also have requirements for the physical structure itself. For instance, they may require short term rentals to have a fire suppression system or other safety measures. Depending on the requirements, it can be expensive to make sure your property is up to code.

There are many expenses associated with running a short term rental, and if you’re not careful, they can add up quickly. Keeping records of your expenses is important, and hiring a bookkeeper who specializes in real estate can help you manage the books. You’ll also want to have a tax professional give you advice on year round taxes and ensure you are operating in compliance with local regulations.

Another common expense is maintaining the property. Short term rentals see a lot of turnover, and while regular wear and tear is to be expected, it’s crucial that homeowners maintain their property to a high standard. Guests are notoriously ruthless in their reviews, and even minor issues can have a big impact on the quality of your short term rental.

Finally, there are often additional expenses like linens and furnishings. These items need to be frequently replaced to keep up with the demands of your guests. They also have to be washed and sanitized, adding up over time. The good news is that a successful short term rental can be very profitable, and it’s not impossible for homeowners to make a living from it.

However, it’s important to take the advice of experts in the field carefully before jumping in. There are many free resources online, including YouTube videos and Facebook groups from high profile influencers who make a living from short term rentals. It’s also a good idea to talk to a broker who has experience with short term rentals, such as NY Rent Own Sell. They can give you a better understanding of the market, how to optimize your home or apartment and what types of amenities to include to maximize your occupancy potential.