Some investors continue to find short-term rentals a profitable investment strategy. Investors see more flexibility and income opportunities with short-term rentals compared to long-term ones. Sundae’s Marketplace is a one-stop shopping place for investors, even though the market remains competitive.
Many investors are interested in the short-term property strategy. Many of the problems that are associated with long-term landlord can be solved by short-term rentals. You can also make more money by adjusting your rates to match the demand. This article will tell you what you need to do if you are considering a short term rental.
Why should you invest in short-term rental properties?
Short-term rentals have many benefits for real estate investors. Investors can generate additional income by charging per week or per day. It is far more than they would get if the property was rented out on a fixed-rate monthly basis, or yearly.
This strategy can also open up locations that would otherwise be overlooked by investors who are looking for long term rentals. For instance, places far away from cities and jobs could deter potential tenants. This same location may be a perfect vacation destination for a week and therefore a good short-term rental.
Finding profitable short-term rental markets
You’ve likely heard that location matters when investing in short-term rentals. It’s true that location is important, but not all places are the same. There are some key questions to ask yourself when you’re searching for a lucrative rental market.
Is it a tourist destination or not?
Local and national destinations are available. Disney is a big draw for international tourists in places like Orlando, Florida. There are also places such as the Jersey Shore, which is popular with locals in that part of the country. The most important thing you should look for is local AirBnB or short-term rental laws. Check before you buy. Many tourist areas already have laws that cover this.
Is there a busy time of year or season?
You’ll want to find out if a certain location is seasonal before you buy a house or choose a location. You can charge more during peak seasons. Off-seasons will likely have higher vacancy levels. Make sure you have the financial backing to justify buying in a town that is only open for a few months.
A year-round location could be a better option. Due to the popularity of these areas with investors who are interested in short-term rentals, prices could reflect this. Consider the pros and cons of each option to decide what is best for you.
What conferences are there or other reasons for visiting this area?
It can be difficult to find the perfect location for short-term rentals. Don’t limit yourself to only vacation destinations. You can also consider short-term rental options in places that are popular for conferences, concerts, or other reasons to visit.
Find your next short-term rent off the market
When it comes to buying short-term rental properties, there are two schools. Turnkey properties are more expensive, but they can be rented right away. Buying on the Multiple Listing Service may be the best option for this option.
Consider buying properties “as-is” if you’re willing to do some work. You’ll have to make some renovations but it will allow you to build equity through forced appreciation. You’ll be left with a property that is ready to rent out after a successful renovation. You should consider off-market property for this strategy.
If you’re interested in learning more about how to find deals that are not on the market, read on.
You can now find motivated sellers
Finding leads can be one of the most difficult aspects of real estate investment. You can find leads by cold-calling homeowners, using Google Ads and other methods. You can also join Sundae Marketplace and have deals from multiple markets delivered to you. You can save time and money by focusing on other aspects of your business.
Local experts provide advice
Our team includes real estate experts who are knowledgeable in different markets throughout the country. They are experts in the market they work in and can provide you with valuable information. When you have a network that can give you vital advice about the market, long distance investing becomes very accessible.
Prepare your due diligence materials
Due diligence is required for both short-term and long-term rental properties. Sundae offers a variety of resources for savvy investors, including inspections, title report, 3D virtual tour, and high-quality interior and exterior photographs. They are usually included on listings so that you can get all the information you need in one place.
Find your next short-term apartment
Edge is Sundae’s premium membership that helps you find your next short-term rent. Edge membership includes the following:
- AutoOffer and . AutoOffer automates your Sundae Marketplace offers. This goes hand in hand with the Offer Position. You can see how your offer compares to all other offers for a property, and adjust your bid accordingly.
- Sundae funding+ simplifies the purchasing of properties.
- Inner Circle is the community of our members. Inner Circle includes member-only webinars, masterminds, and market reports to help you take your business to another level.
- iOS App. Receive push notifications and a map based on location. Invest from anywhere.
- Sundae’s Historical Sales feature lets you use market data to help inform your offers.
- You can increase the number of markets where you place your offers. You’ll be able operate in multiple markets as long distance investment becomes more popular.