How Will Short Term Rentals Impact My Homes Value?
With 150 million users and growing, Airbnb is one of the most prevalent accommodation platforms.
Initially, it began as an alternative to hotels, providing properties for vacationers. However, Airbnb's reach has grown to more. Now, Airbnb's short term rentals are making waves in the housing world.
If you're a homeowner and you're thinking about listing your property on Airbnb, the possibility of short term rental may come up.
One of the biggest questions homeowners considering providing a short term rental agreement is whether it will impact their home's value.
Here's what you should know about short term rentals and your property value.
Short Term Rentals Might Raise Your Property Value
If your home or furnished apartments can double as a short term rental or lodging alternative, it might increase your home's value.
Since room-sharing, short-term rentals, and vacation rental all provide additional, somewhat passive streams of income, having a home that has this potential is valuable.
Location is one of the primary determinants of the viability of an Airbnb property. Your home or apartment has a much greater chance of being rented as a vacation rental if it's in a prime vacation location.
However, even if your home isn't in a prime location, you still might be able to make an extra income as a short term rental or room-sharing property. Anywhere there are long-term rentals, there's sure to be a market for short term rentals or rooms.
But, It Might Impact Refinancing Down the Line
Lenders are usually very lenient when financing a residential property because they're relatively low risk compared to commercial properties. But if you're offering short term rental in your home, is it really strictly residential? The line is blurry.
As a precaution, lenders might not refinance or will require a higher interest rate.
Will, It Cost Me?
Turning your home into a short term or vacation rental property is an investment of time, money, and effort. It's definitely not easy.
Here are some of the things you'll need to be aware of when listing your property.
A good cleaning team can save you time, money, and effort.
Good marketing basics mean high-quality pictures and knowledge of local competition.
You might need to invest some money into a high-quality camera and spend time researching your local competition online.
Although Airbnbing your home is a somewhat passive income source, you need to be prepared at all times. Your guests need to be able to get in contact with you at the drop of a hat.
It's a Bit of an Investment, but Totally Worth It
Considering it can increase your property value and provide additional income (or help pay off your mortgage or rent), allowing short term rentals is definitely worth undertaking.
But, it can be difficult and time-consuming to do on your own.
Want to turn your property into an Airbnb property without all the effort? Let Venture Yours do it for you. We offer Airbnb property management to help you turn your home into a five-star vacation rental.