Short- term rentals such as Airbnb or furnished rental properties are becoming a popular real estate investment strategy because of the consistency of rental income they generate. Investors who are looking to make extra money can reap numerous benefits that can be greater than for long-term rentals. With the right location, real estate investors are earning a 30% higher profit than what the same investment property would generate if used for long- term rentals.
Positive cash flow can be earned on short- term rentals because tenants pay their rent up front. Investors don’t have to worry about someone not paying their rent and tenant laws for short term rentals tend to lean in favor of income property owners. A wide array of renters from all over the world will move in and out of your property and many of them will consider staying there again in the future which creates a recurring income stream.
The short-term rental market is growing, and travelers are becoming more and more comfortable with the idea of staying in someone else’s home while they are on vacation. The global short-term market is growing at a rate of more than 7% annually and it is expected to become a 194- billion-dollar industry by 2021.
Property owners can write off a lot of things for short-term rental properties including cleaning expenses, utilities, repairs and supplies used by tenants such as furniture. Short- term rentals also qualify for a lot of the same tax breaks as long- term rental properties such as mortgage interest and income property taxes
Holly Lynn, the Queen of Capital handles all aspects of short- term rentals such as Airbnb including creative financing, management, housekeeping, hospitality and more. She can help you choose the best rental strategy for cash flow and profit.