Find Your Next Short-Term Rental by Doing This
Short-term rentals remain a lucrative investment strategy for some. Some investors see greater opportunities for flexibility and additional income compared to traditional long-term rentals. While the buying market remains competitive, Sundae’s Marketplace serves as a one-stop shop for the needs of any investor.
Plenty of investors are looking into the short-term rental property strategy. They can offer a viable solution to many of the issues that come along with being a long-term rental property landlord. They also offer greater profit upside because you can adjust your rates regularly to reflect demand. If you’re considering a short-term rental, this article will show you exactly what to do next.
Why invest in short-term rentals?
There are plenty of benefits that come along with short-term rentals for real estate investors. It’s optimal for generating additional income because investors can charge rent on a per day or per week basis. This is much higher than what they could get if they were renting out the property on a yearly or semi-annual basis with a locked-in monthly rate.
In many instances, this strategy also opens locations that are overlooked by those investing in long-term rentals. For example, places that may not be close to jobs and far from cities could be a deterrent to potential long-term tenants. The very same location could be an ideal one week vacation destination and thus a great short-term rental.
Finding profitable short-term rental markets
When you invest in short-term rental properties, you’ve probably heard that location is key. This definitely holds true, but it’s important to remember that not all locations are created equal. When you’re looking for a profitable rental market, there are a few key questions you should keep in mind.
Is this a tourist destination?
There are local and national tourist destinations. A place like Orlando, Florida is home to Disney and gets tons of international tourism. Then there are places like the Jersey Shore which attracts locals from that region of the country. Perhaps the most important thing to look out for are local AirBnB and short-term rental restrictions. Many areas that consistently attract tourists already have laws in place for this, but be sure to check before buying.
Is it busy seasonally or year-round?
Before purchasing a property or choosing a location, you’ll need to know whether a given location is seasonal. During peak seasons, you’ll be able to charge a premium. In the off-seasons, you’ll probably have higher vacancy rates. Run the numbers to make sure that you can justify a purchase in a seasonal town.
In contrast, something that serves as a year-round destination could feel like a safer bet. Given the popularity of these locations with short-term rental investors, purchase prices may reflect this. Weigh the pros and cons to determine what’s best for your strategy.
Are there conferences or other reasons to visit this area?
Finding an ideal location for short-term rental properties is tricky. However, don’t feel limited to vacation destinations. Places that have conference centers, music venues, and other ongoing reasons to travel to can serve as an alternative option for short-term rentals.
Look for your next short-term rental off-market
There are two schools of thought when it comes to short-term rental property purchases. You can purchase turnkey properties that cost more, but can be rented out right away. For this option, buying on the Multiple Listing Service (MLS) might be your best option.
If you want to get your hands dirty, though, consider looking at buying properties as-is. Although you’ll need to do some renovations, it offers the opportunity to build up equity by forcing appreciation. After a successful renovation, you’ll have a turnkey property that can be rented out. For this strategy, you should look at off-market properties.
Read on if you want to learn more about finding off-market deals.
Motivated sellers brought to you
Finding leads is one of the most time consuming elements of real estate investing. You can find potential leads by cold calling homeowners, direct mail campaigns, Google Ads, and other tactics. Or, you can join Sundae’s Marketplace to have off-market deals brought to you in multiple markets across the country. This saves time and advertising money so that you can focus on other parts of your business.
Advice from local experts
Our team is equipped with knowledgeable real estate experts in various markets across the country. These people are local to a given market and know the ins-and-outs so that they can share their information with you. Long distance investing is highly accessible when you have the network to give you crucial advice on the market.
Due diligence materials at the ready
Short-term investment properties and long-term rentals alike require due diligence. Savvy investors utilize Sundae’s resources such as inspections, title reports, 3D virtual tours, and quality interior and exterior photos. These are typically provided on listings to give you a lot of information in one place to simplify your due diligence process.
Land your next short-term rental
Sundae’s premium membership, Edge, brings you one step closer to landing your next short-term rental. Here’s what’s included in an Edge membership:
- Offer Position and AutoOffer. As the name implies, with AutoOffer, you’re able to automate your offers on Sundae’s Marketplace. It goes hand-in-hand with Offer Position. This allows you to see where your offer ranks amongst all the other offers on a given property so you can adjust your bid.
- Sundae Funding+ is a lending option that streamlines the process of purchasing properties.
- Inner Circle is our membership community. It includes everything from member only webinars and masterminds to market reports that can take your business to the next level.
- iOS Mobile App.Receive push notifications, a map view based on your location, and next-level convenience to invest from anywhere.
- The Sundae Historical Sales feature allows you to use marketplace data to inform your offers.
- Increase the number of markets you can place offers in. As long distance becomes a viable option for many investors, you’ll be able to operate across multiple markets.