Short term property leasing is an increasingly common practice for landlords and property managers. With the rise in short term leases has come questions and controversy. Some see it as an attractive alternative to traditional long term leasing while others are concerned that is disrupts the community and causes other problems. It is important to consider the pros and cons of short term leasing before you offer your property on a short term basis.One of the biggest reasons to rent a property short term is that the rental rate is almost always significantly higher for a short term arrangement. Some homes in tourist destinations can make many times more renting for a day or week at a time as opposed to a long term rental. This could be even greater if you are offering your home during a special event. There were many stories about people renting their DC homes during President Obama's Inauguration for astronomical rates. On the other hand short term rentals might be subject to Hotel Occupancy and other taxes that a regular long term lease is not. It all depends on your local laws but there is certainly a chance of increased costs. Other costs to consider are insurance rates and maintenance costs.
Since the home will be constantly changing from one tenant to the next you will need to cover housekeeping and other maintenance costs not normally associated with a long term rental. The property will need to be kept in ideal condition in order to attract new tenants. Also do not forget to include utility costs. Some suggest that short term leasing gives landlords a better chance to keep on top of home improvements by regularly having to enter the home a inspect. Those concerned about home preservation point to short term leasing as a great option that allows them to continually work on improvements and maintenance.
Some communities are opposed to short term renting out of fear of bad behavior from tenants that are there and gone in a matter of days. Because of these and other concerns towns and cities are passing laws restricting short term leasing or levying taxes and fees on landlords of short term rentals. There are however many instances of tax breaks on maintenance costs for short term rentals along with other incentives. You should research all the pertinent laws in your area before offering a home for short term rental. Once you have weighed the pros and cons for your particular property you can come to an informed decision on short term leasing.
