Why it Makes the Most Sense to Rent for a Short Term

The advent of online rental platforms has provided a lot of opportunities for rental investors. If you are in this industry, you might already be in a dilemma. Online rental platforms have made short-term rentals an attractive venture for many investors in the real estate industry today.

It is vital to take time to decide what will be the best investment for you between short- and long-term rental investing. Many people, however, invest in short-term rental property, and there are various reasons for that. This article will explore why short term rentals are better.

Let’s get started with it.

What Are Short-Term Rentals

These are furnished living spaces that are let out for short-term stays. People can rent short term rentals for a few days or even weeks. Most people also refer to them as vacation homes. It is worth noting that short term rentals are mostly considered a perfect alternative to hotels.

Long-Term vs. Short-Term Rentals

Choosing between short- and long-term rental investments might not be easy. You need to take time to analyze the benefits and limitations of each before getting started. This section will compare some of the things you need to know about short and long term rentals.

Short- and long-term rental investing are the major strategies used by real estate investors. If you are looking to invest in this industry, then these are two broad strategies that you might need to consider. However, you might wonder which strategy is better than the other.

The reality is that short term rentals offer better value than long-term ones. This is because long term rentals have fixed rates, higher turnover costs, and allow less flexibility. These are limitations that aren’t common with short term rentals as we’ll see in the rest of this post.

You can be sure of better profitability if you take your time to invest in short term rentals. However, it can be tricky to ace it as a beginner unless you learn how to profit from short term rental investing. This is one of the reasons to seek expert help when investing in such properties.

You can work with Techvestor to ensure you get the desired results from your investments. They can help you develop an excellent short-term rental investment strategy that will fit your needs.

There are lots of benefits to working with experts when developing a short-term rental investment strategy. It will be vital to hire them because they understand what the market entails. They also will help you know how to maximize investments for better returns.

Pros and Cons of Short-Term Rentals

There are various benefits and limitations to investing in short-term rentals. Knowing them will make it easier to know the best ways to make money using the short-term rental strategy. This section will explore the pros and cons of short term rental investing.

Short-term Rentals: Advantages

  • Higher nightly rates: Renters pay a nightly premium for short-term rentals. This cumulatively gives the investor better returns than renting their property on a monthly basis.
  • Rental rate flexibility: It is easier to adjust your rates when you offer rental property for the short term. You can change the rates whenever you feel like it.
  • Build vacation home equity: You can make it easy to build equity in your vacation property by investing in short term rentals.
  • Partial Rental Opportunities: You can rent a spare room in your home as a short term rental strategy. This is one of the most efficient ways to earn some extra income.
  • More comfort: People spend little time in short term rentals so it's rare that the premises will be full at one point. You can be sure that there’ll be less noise than with long term rentals.
  • Authentic experiences: You can ensure that you provide more personalized experiences with short-term rentals. You’ll provide every client with exactly what they need.

Short-term Rentals: Disadvantages

Various limitations comewith investing in short-term rentals. It is important to know these disadvantages so that you make the right investment choices. Here are some of the disadvantages of investing in short-term rental property.

  • Major management burden: Management of your premises can be tricky, especially when dealing with short-term rental property. This is because of the high guest turnover investors experience.
  • Municipality prohibitions: Most cities across the world have started cracking down on short-term rentals like AirBnB. You need to be sure that your municipality does not prohibit them.
  • Building prohibitions: There also might be building prohibitions wherever you want to develop your short term rental. It is important to check the restrictions in your area.
  • Financial challenges: There might be financial challenges that might make it tricky to invest in short-term rentals. You need to have a good financial base to be able to build enough short term rentals that will bring in good revenue.

Although short term rentals come with limitations, it is worth noting that they are preventable. The benefits of investing in short term rentals, however, far much outweigh the limitations. It will be an excellent idea to ensure that you consider them despite these limitations.

Short-Term Rental Tax Implications

Source: Pixabay

It will also help to look into the short-term rental tax implications. That will help you determine if investing in the short-term rental industry will be a good idea. This is because you might make investments that don't bring you good returns because of high taxes.

It is worth mentioning that you won’t get taxed if you rent out property for less than 14 days in a year. However, you will most likely exceed that timeframe, so you should prepare to pay tax. You can, however, deduct furniture, decor, and other basic maintenance costs.

You can also deduct any losses that came about as a result of operating the premises. But then, long-term rental property owners do not pay huge taxes on their properties. But then, you will still make a lot of profits as a short term rental owner despite paying higher rates.

How to Market Short-Term Rentals

You might be wondering if investing in short-term rentals will make sense, especially in terms of marketing. Well, the marketing budget for short term rentals isn’t as high as you might think. You only need to leverage modern and cost-effective marketing techniques.

One of the options you can consider is marketing on social media. You can create social media pages and put up posts that will help you get clients. Also, you can come up with a website for your business. Create content that your audience wants to read and use visuals of your rentals to attract them.


Those are the reasons for choosing short-term rental property investment. There’s no doubt that these rentals are more attractive and profitable than long-term rentals. But then, there is a lot to know about short-term rental investments before you put your money into them.

This article has explored the advantages and disadvantages of short-term rentals. If you are looking to get started with investing in them, you need to keep those pros and cons in mind. It will also be vital to research how to make money on rental properties before you start.

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