Lisa Mailhot | July 13, 2023
If you're a homeowner contemplating your next move, you might be considering the option of turning your current house into a short-term rental property instead of selling it. Short-term rentals, which have gained popularity in recent years, offer an alternative to hotels and can be seen as an investment opportunity.
Although the concept of a short-term rental may appear enticing, you might encounter challenges in assuming its responsibilities.
Effectively managing a short-term rental property requires significant time and effort, encompassing various tasks such as managing reservations, coordinating check-ins, and handling cleaning, landscaping, and maintenance responsibilities, all of which can be individually demanding, let alone when combined together.
With the frequent turnover of guests in short-term rentals, the continuous influx of home traffic can result in escalated wear and tear on the property, potentially necessitating more frequent repairs or the replacement of furniture, fixtures, and appliances.
Consider carefully whether you possess the capability to meet the demands of such a commitment, particularly if you intend to utilize a rental listing platform for advertising. It's important to note that these platforms often impose specific requirements that hosts must fulfill. An informative article from Bankrate elaborates:
"Managing a rental property can be time-consuming and challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable contractors you can reach out to in a pinch? Consider whether you want to take on the added responsibility of being a landlord, which means screening tenants and fielding issues, among other responsibilities, or paying for a third party to take care of things instead."
Before making the decision to transform your house into a short-term rental, there are numerous factors that warrant careful consideration. If you feel unprepared for the extensive workload involved, it might be advisable to opt for selling your house instead.
With the ongoing expansion of the short-term rental industry, there has been a corresponding rise in regulations. These legal restrictions often involve placing caps on the number of vacation rentals allowed in specific areas, particularly in larger cities and tourist hotspots where concerns arise regarding overcrowding and housing scarcity for local residents. Additionally, there may be limitations on the types of properties eligible for short-term rentals.
In many cities, homeowners are also obligated to obtain licenses or permits prior to renting out their properties. Nick Del Pego, CEO at Deckard Technologies, explains:
“Renting short-term rentals is considered a business by most local governments, and owners must comply with specific workplace regulations and business licensing rules established in their local communities.”
Before contemplating renting out your home, it is crucial to conduct a thorough investigation into whether short-term rentals are regulated or prohibited by the local government and your Homeowners Association (HOA).
Converting your house into a short-term rental should not be a hasty decision; conducting comprehensive research is imperative. If you're unsure whether selling your house is a more favorable option, reach out to us today for further guidance.
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