With the market booming, real estate has become a trendy and generally safe investment route. While buyers have different options to explore, recent trends suggest that vacation rentals have become the hot choice to earn more income. As more and more people are looking to travel, they are looking at short-term rental properties rather than overpriced hotels. These rental properties are available for short periods of time, from a few days to a few weeks. Stays might vary, but anything under six months is considered a short-term rental. For these listings, also known as vacation rentals, now is the perfect opportunity to break into the market while demand is growing - and availability is decreasing.

Vacation Rentals - The Basics

Vacation rentals, particularly Airbnb’s, have become the most sought-after form of lodging for vacation goers, with many properties’ vacancies getting booked back to back. This means that the increasing amount of people scheduling reservations will also dictate the increasing income homeowners could be receiving. You could be looking at considerable profits if you purchase a great vacation rental at a decent price and manage it properly. There are other benefits as well including property value appreciation, offsetting homeowner expenses, and possible tax benefits. 

The best part is that anybody can be an ideal host or investor as long they go in with a set plan and goals, which is why we’re here. We want to guide you through this process to show that real estate investing is a proven way of growing wealth. Once you have access to the education and the capital that is required, the end goal is highly attainable.

There are several pathways you can go down when entering the highly profitable, short-term rental market. The main idea to keep in mind is to know who your ideal renter is. From vacationers to business travelers and even those who are looking for longer stays of 30 days or longer, there are multiple groups looking for rentals, however, they all need different spaces. Just make sure you design your rental for your target renter in order to maximize its potential.

Placement, Price & Preparation=Profits

Placement, price, and prep. They are some of the most important factors to consider. 

With location, find the population you want to attract and create a home that would appeal to them. If you’re near tourist attractions, recognize that your bookings will need to be reserved for a shorter period of time. If you want to rent out in residential areas, know that you might find people who will need to stay for at least 30 days. Location is important when trying to figure out your ideal renter. 

Use smart pricing and compare rates from surrounding properties when deciding on the price. Other ways to attract bookers are to offer deals for special occasions. Holiday pricing, long-term rates, military discounts, or special offers for loyal guests are good options to include on your listing. 

And of course, popular homes don’t happen without a hospitable setup. Make the most of your space and create a welcoming atmosphere that your guests are going to enjoy. Adding little embellishments that raise the level of Comfort and satisfaction will help your ratings, enticing new visitors. With the right location, an affordable price, and dedicated preparation, your property can see a good result.

Vacation Rentals - The Challenges

And while vacation rentals can come with a lot of benefits, it’s also good to remember the drawbacks. Cleaning and maintenance are a must since these properties are always kept in guest-ready condition. Seasonality can also play a part in the demand of your bookings depending on the type of listing you have, meaning your home might be popular at certain times in the year and not at other times. Another factor to look into is possible location restrictions. Every city or county and HOA is different when defining the qualifications of a short-term rental. Owners need to verify local regulations and licensing before leasing their property or risk high fees for going under the radar.

If you are looking to get started, we are more than willing to help. We want to ensure that every American, starting here in San Antonio, can win big in this business, especially since now is the best time. Get started as quickly as you can because this moment won’t last forever. Inventory is already starting to wane so buy as much of America as you can. The numbers are great and if you don’t do it, someone else will. If short-term rentals may not seem like your thing, making smart real estate decisions should be everyone’s thing. LRG is ready and willing to help coach you through this process and explore ways we can assist you in growing your wealth through residential real estate.