Frequently Asked Questions
I'm deciding between Airbnb and Long Term Leasing my house, how do I decide?
Vacation rental platforms such as Airbnb have quickly boosted the popularity of short term rentals in recent years, but investors should not automatically count out a long term vacation rental investment. A vacation rental property posted on Airbnb offers owners the ability to change pricing, receive public guest reviews and list the property for free. One of the added benefits of short term rentals is the ability to generate revenue and still have the ability to use the home whenever you want to by blocking off dates. A long term vacation rental investment strategy may be a better fit for individuals who prefer to have the same tenants over a longer period of time, thus having to deal with less tenant turnover. A longer-term tenant may even help bring in a more steady and stable cash flow as well, although a vacancy may be a little more difficult to fill relative to a short term rental such as an Airbnb. Most importantly, investors should heavily consider the vacation market in which they are located in, and research which strategy would be the most conducive to bringing in a sizeable rental income over the course of the year. Here at CO-Host, we manage and utilize both short term and long term stays to maximize your investment.
Long Term vs. Short Term Rental Properties:
If you have invested in a property that you think you can position well as a vacation rental, you may be wondering how to decide on the benefits of long term vs short term vacation rental properties. Read on to find out about the unique sets of advantages and disadvantages that are often associated with the two different vacation rental strategies.
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Benefits of Short Term Rentals:
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1. Personal Vacation Use: Many investors like to make personal use of their home, and rent it out when they are gone. When a property is listed, it is incredibly easy to block off dates when you would like to use the property.
2. Less Wear and Tear: Contrary to what most people believe, Airbnb listings actually receive less wear and tear than what a long-term rental receives. This is contributed to having a maintenance crew and cleaning crew through the property every time guests change over. With long-term rentals, problems from tenants often go unnoticed until an inspection of the property is conducted or the tenant themselves bring the issue up. This generally leads to massive maintenance costs and costly renovations between tenants.
3. More Potential for Income: Owners are typically able to charge a higher nightly rate for short-term rentals, compared to long-term vacation rentals. Although occupancy can fluctuate, thus making rental income less consistent, short-term rentals rend to provide more rental income long term.
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Benefits of Long Term Rentals:
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1. More Consistent Cash Flow: Because of longer lease agreements, long-term rentals bind a tenant to a consistent rental fee. Short-term rentals collect their fees as a lump sum at the beginning of the stay. This is paid out monthly by CO-Host after the management fee is collected and all reservations have been collected.
2. Less Turnover: When the rental market is doing well, a tenant's lease agreement can often times be extended to maintain rates from month to month. This generally saves an owner anywhere from 10-20% the turnover costs of losing rent during a change in tenant.
Why choose CO-Host Airbnb Management?
CO-Host Airbnb Management has been profitably managing short-term rental properties since 2017. We are the only "All-Inclusive"Airbnb Management Company in Colorado Springs and Salt Lake City. We handle everything you need to profitably manage a Short-Term Rental on Airbnb, VRBO, and a dozen other short-term and long-term rental sites. Our rate is our rate, and we built our vision around the idea of treating our clients like family. To us, that means not nickel and diming our clients for every little expense. Instead, we charge a little bit more and cover all of the costs that go into making your property as profitable as possible. This has been the reason that our clients and their referrals have been the core success of our business. We haven't advertised or marketed ourselves for the past several years, instead we have relied entirely on the work we perform to build our business. We let our work speak for itself!