The rental property industry is a hot business nowadays. Though it was already popular, recent housing crises have made it even more desirable. So, it’s an excellent time to dive into this business. Passive rental income provides the best side income.
In short-term rental investment, managing your rental property is crucial. And for management, cleanliness comes first. After the pandemic, everyone is conscious of cleanliness and hygiene. Therefore, to be at the top of the list for rental property investment, ensure a clean and well-maintained rental property.
In this article, I have listed some essential tips and tricks for maintaining your short-term rental property. Following these tips will make your investment more effective.
Why Should You Consider a Rental Property Investment?
One of the primary benefits of investing in short-term rental properties is the potential for profit. Landlords benefit from increased demand, higher rates, and higher profits during busy tourist seasons. For instance, you could earn $1,500 weekly from a rental property during peak seasons. The same rental property would only bring in $1000 monthly from a permanent tenant.
The landlords also have more options and freedoms with short-term rentals. Spending time at the property is guaranteed throughout the year when you invest in short-term rentals.
Short-term rental investing is an increasingly popular way to make money in the real estate market. It involves renting out a property for short periods of time, usually ranging from one day to several months. This type of investment can be both lucrative and rewarding, but it also comes with a unique set of challenges that investors need to be aware of.
In general, short-term rental property investment requires more work than traditional long-term rental investments, as you’ll need to actively advertise and manage your properties on a regular basis.
This can involve things like taking care of cleaning and maintenance services between rentals, responding quickly to inquiries or complaints from guests, and making sure that all applicable taxes are paid on time. Additionally, you may also have to contend with local zoning laws when setting up short-term rentals in certain areas.
How to Keep a Well-Maintained Short-Term Rental Property?
Decided to go for a short-term rental investment? Here are a few tips for managing your rental property. I have discussed in detail how to keep your rental property well-maintained.
1.Hire an Expert Rental Property Manager
Your rental property investment administration should be trouble-free. Otherwise, be ready to manage day-to-day tasks. These tasks include posting ads online, securing reservations, greeting guests upon arrival, processing payments, organizing cleanings, and maintaining the property.
Remember to factor in property maintenance expenses when setting rental rates to ensure a steady income stream.
You are the one who is responsible for paying the bill. It is in your best interest to look into methods to reduce the amount of energy you use in your rental property investment. Modifications that are straightforward to implement include:
- Lowered shower heads.
- Energy-efficient light bulbs.
- Regular air filter replacements (to minimize dust accumulation that may strain your HVAC system).
These are just some of the adjustments that are possible.
3.Form a Liability Corporation
Forming a limited liability corporation for your vacation rental business can assist you in avoiding conflicts. In addition, you need to ensure that your rental property is adequately covered by insurance.
You need to secure both its structure and contents. It is an excellent idea to draft some rules and standards to minimize conflicts with tenants and complaints from neighbors.
4.Ensure a Stress-Free Tax Season
Create a system to record rental revenue, costs, and other paperwork. It will ensure a smooth tax season. Have a separate bank account for your short-term rental business. It will keep track of rent payments and expenses efficiently. This will make monitoring your properties’ financial status much simpler without mixing corporate and private funds.
For instance, using Techvestor’s unified finance platform, property managers may take in rent and pay out expenses without ever leaving the app. Allocate costs to individual properties and label them according to the Schedule E categories you choose. Maximize real estate tax advantages and save time on tax preparation by keeping track of the year’s transactions in one location.
5.Amenities and Facilities
Complimentary parking, a fully supplied kitchen, gourmet cupcakes, Netflix, local guidebooks, soft towels, and other amenities go a long way toward drawing repeat visitors and garnering excellent reviews online. Make your guests feel welcome in your rental property investment by engaging in simple yet meaningful actions.
For instance, if you operate a beach rental property investment, you may provide guests with free use of lounge chairs and toys, with the proviso that they rinse them out with a hose after using them. This would be the case even if you charged for their usage.
Maintaining a short-term rental property comes with its own set of unique challenges. Rental property owners must be proactive in order to keep their properties in top condition and provide their guests with an enjoyable experience.
You need to conduct regular inspections of the rental space to ensure that everything is functioning properly and in good condition. This includes checking for any damage or needed repairs, as well as making sure that all appliances are working correctly.
Additionally, check for any signs of pests or other infestations, such as mold or mildew. Be sure to address these issues promptly to prevent them from becoming larger problems down the road.
Inspecting the exterior of the home should also be done regularly to ensure there are no safety hazards or damage caused by weather conditions such as wind, rain, or snow.
It’s also important to stay in communication with renters throughout their stay and provide them with tips on how to properly maintain the rental during their visit.
Rental property investment is an excellent way to generate passive income. It comes with considerable profit as well as responsibility. The payoff can be manifold if you manage the rental property well.
There comes a few challenges to running a smooth short-term rental investment. Make sure you embrace all the challenges and maintain the rental property well to avoid inconvenience and enhance the profit.