Short term private rentals have become popular over the last few years, with sites such as Airbnb and Home Away. And with good reason. Being able to rent out a house or condo at a daily hotel rate seems lucrative. And with success stories circulating out there, more people have jumped on the bandwagon. So, how does this type of rental venture compare with simply leasing your house for the long term, such as one year or longer?
Long term rentals, such as leases for 12 months or longer, have been a popular route for many years and sought by many homeowners due to the stability of having a constant tenant for a longer period of time.
Short term rentals have come under scrutiny this past year. Recently, the Clark County Commission took steps to try and ban these short term rentals. So, of course, that would be one issue to contend with if you’ve thought about going that route. But why did the discussion about banning short term rentals even start? Simply put, the issues that came with them. The constant traffic in and out of a house in a residential neighborhood as guests came and left along with excessive noise levels.
Additionally, many owners have realized that even though the per day rental rate is lucrative, additional vacancy periods, maintenance and upkeep reduce the net income. Owner involvement is also significant to ensure the property is ready for each new guest. On the other hand, with a long term rental, while the daily rate may be less, the income is constant month after month and the turnover factor is significantly reduced, reducing the cost of maintenance and repairs. Longer term rentals typically have an in depth screening for potential tenants as well, in an effort to minimize the risk of unpaid rent or damages.
While each property owner must make their own decision, knowing what is involved in renting your property – whether for the short or long term – will allow you to make the best decision possible.
For professional property management, call Nicklin Property Management at 702-903-HOME or email Michelle Williams for a free rent estimate and proposal at firstname.lastname@example.org.
Steve is the founder of Nicklin Property Management & Investments, Inc. His experience in property management and as a real estate broker exceeds 30 years.