Resort and short term rentals can be a great way to earn money, however, this isn’t a line of work that should be jumped into without proper preparation. Short term rental lease has different demands compared to standard property letting and these can be quite a shock to the system for those who have only dealt with standard property leases in the past. If you are thinking about moving into the short term rentals market then there are a few things you need to consider before taking the plunge.
Although large firms are able to find the manpower and resources to cover both kinds of property rentals, it is often a lot easier to specialize in one or the other. Sales are one of the biggest areas that you will notice a difference between standard lease and short-term rental lease as contracts tend to run for only a week or two. If there are spells where the letting is left unoccupied then this is lost revenue and as a result, the sales team has to work very hard to ensure the property is fully booked. This is one of the biggest resources in short-term rentals and needs a lot of staffing. As well as this, people expect to hear back from a company straight away and as you are competing with the likes of fully staffed hotels, who often have people on call throughout the day, 7 days a week.
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Unlike with long-term rentals, when you are using a short-term rental lease the marketing has to be up to date and quite forceful. If you only advertise in one place then the chances of someone stumbling across your advert are significantly lower and while this is ok with a long-term lease as it results in the property being filled for 12 months, it can have a major impact on income with short-term rentals.
Of course, it isn’t just the sales and marketing side of things that is a lot more work intensive. Physically, there is a much greater demand for you and your employees. Once a tenant vacates the property, make sure that they left it in a good condition. This could be cleaning, washing the bedding and even looking for stolen property. After all, this is something that will affect the next person coming to stay.
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In conclusion:
It’s important to remember that short-term rentals do not come under the standard landlord insurance. You need to make sure this is covered by your insurance company. There’s a higher chance for people to place a claim against you when dealing with multiple instead of one. It can be a major drain on resources and you should talk to your insurance broker before entering the market.
With this in mind, short-term rentals is truly an enjoyable way of making money. It offers a whole host of opportunities for all involved. If you’re considering going into the market you should be aware of the pitfalls. However, these aren’t the end of the road and there is still scope to build a truly enjoyable business.
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