Portland Rental Homes

Should You Invest In A Short-Term Rental Property?

A model of a house on a sandy beach illustrating a short-term rental

If you’ve taken a vacation in the last five years, you’ve likely considered, if not actually tried, a short-term vacation property through one of the popular companies like Airbnb or VRBO. Often, a great experience piques the renter’s interest and prompts the question, “Is this an investment option that would be right for me?”

A Growing Market

A short-term rental is when you rent out a residential property, a room in your home, or ADU tiny home for 28 or fewer days. In recent years, short term rentals have transformed from a low-key side income to a lucrative industry across many markets. Some homeowners find that their properties can generate more income than a traditional lease, but short-term rentals come with their own unique set of challenges.

Advantages

The advantages to a short-term rental can be very tempting for someone looking for extra income:

Disadvantages

There are some disadvantages to be aware of as you consider jumping into the short-term rental business.

Think About the Marketing

There are many factors to consider when evaluating a property for its short-term rental potential. Take the time to think through these categories to create the best opportunity for success in the short-term rental market.

Location

You may live in an area primed for short-term rentals, or you may need to look a little further out to take advantage of the location factor. This heat map can help you determine what the best locations are. Understanding your property location will help you make decisions about everything else. 

Clients

Once you’ve determined what your location offers and figured out how to highlight your property, take some time to consider the potential clients who may find your property appealing. A short-term rental doesn’t have to be a “vacation rental,” so don’t overlook these potential clients in your marketing plan:

Quality counts when it comes to tenants and especially the short-term rental tenant. Consider the high-quality tenant and how to screen for them.

Finances and Regulations

It’s one thing to know your marketing plan, but even the best marketing is useless if you don’t understand your local regulatory requirements or the bank shoots down your loan request. With a little upfront work, you can stay on the right financial track and be able to check all of the regulatory boxes.

Partner With the Experts

A short-term rental can be a unique way to capitalize on your property and its location. Talking with an expert as you weigh your options can give you the confidence to step into this new way of approaching property ownership. Call or text Darla Andrew today at 503.515.3170 to learn more about how we provide the support you need to confidently enjoy the rental process. 

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