Shifting from Long-Term to Short-Term Rentals
June 1, 2023 | Written by Nick Sheveland
When it comes to property rental, striking a balance between steady income and maximum profitability can be challenging.
However, a rising trend among homeowners and real estate investors alike is the transition from long-term to short-term rentals, with the potential to significantly boost income.
3 Major Benefits to Short-Term Rental
According to a report from IPX1031, an average short-term rental can generate 30% more income than a long-term rental. This impressive income potential is primarily due to the flexibility of pricing according to demand and seasonality. Short-term rentals offer the ability to adjust rates for peak tourist seasons or events in the area, allowing property owners to capitalize on increased demand.
Another considerable benefit is the flexibility in personal use. A short-term rental property can double as a vacation home for you or your family, without the need for year-long tenant commitments.
Additionally, short-term rentals often attract business travelers or tourists who are less likely to cause wear and tear compared to long-term tenants. This can result in reduced maintenance costs over time. A study by Beyond Pricing found that short-term rentals experience a 63% lower repair and maintenance cost ratio compared to long-term rentals.
However, there are also factors to consider when making the switch. Higher turnover means more frequent cleaning and restocking of supplies. Marketing and booking management can also be more intensive. Partnering with a property management company like Clear Stay Properties can help alleviate these responsibilities, allowing you to enjoy the financial benefits without the additional stress.
Making the switch from long-term to short-term rentals can provide a significant boost to your income. With careful planning, a strategic approach, and the right support, you can tap into this lucrative market and see impressive financial gains.
Why Partner with Clear Stay Properties?
As you navigate the fascinating landscape of short-term rental properties, partnering with a seasoned property management company can turn this journey from daunting to delightful. This is where Clear Stay Properties steps in. We offer a tailored blend of services that cater to your specific needs, whether you're a homeowner looking for a steady income source or an investor aiming to maximize rental revenues.
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With a track record of converting struggling long-term rentals into thriving short-term businesses, we've mastered the art of identifying and capitalizing on opportunities in the rental market. We don't just manage properties; we transform them into profitable ventures.
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Our comprehensive services range from property identification, market analysis, and legal compliance to guest management and maintenance. We provide professional photoshoots, craft compelling property descriptions, and use advanced pricing strategies to attract guests and optimize returns.
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Our strategic approach ensures maximum occupancy and competitive pricing, leading to an excellent return on investment (ROI). We've successfully helped homeowners like Fred and Ursula achieve over 50% occupancy in the first month of listing, significantly higher than the average Airbnb occupancy rate of 48% (source: AirDNA).
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We believe in the power of clear communication. Our clients are continually updated with performance reports and market trends, ensuring they're well-informed about their property's progress and potential.
Want to turn your long-term rental into a succesful five-star short-term rental? Contact Clear Stay Properties today see how we can help.
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