The Dallas-Fort Worth area is a unique market in that it offers opportunities for both long term rental property investments and short term rental property investments. More than 22 million people visit the area every year, and a lot of those people are looking to rent homes instead of hotels. Some of them will be staying for months at a time, and they want a furnished short-term rental that feels like a home away from home.
What are the benefits of a short term rental property? There are several of them.
Are Short Term Rentals a Good Investment?
One of the reasons that short-term rentals are such profitable investments is that you’re earning more on them per-night. When you’re thinking about what you’ll earn on an investment property, rental income is the first thing you’ll want to think about.
Short term rentals have an advantage. Sometimes, the income per night or per week or even per month is double what you’d earn if you were renting out the home as a long-term lease. For example, on a long term lease, you might earn $2,000 a month in rent. The same property that’s being rented out for only one month can bring in between $3,500 and $5,000 for the month, depending on your amenities, location, and the season.
Of course, that’s a per-night rate, and you won’t have 100 percent occupancy with a short term rental. You’ll need to factor that into your budgeting. With a strong marketing plan and some great property managers, you can turn the property over as frequently as you need to and keep it close to fully occupied. But, you cannot plan on a full year of occupancy the way you might with a long term lease.
Short Term Rental Homes Offer Flexibility
Investing in a short term rental property allows you to enjoy some flexibility in terms of when you rent out your property and who you rent it out to. There are a lot of laws and regulations that come with long term rentals. You’ll have those with short term rentals, too, but there’s far more flexibility. You can decide whether you want to establish a minimum number of nights that the home is rented. You can also establish a maximum number of nights. Maybe you want to rent out the property on a weekly basis only or for periods of exactly one to three months. It’s up to you.
You Can Use Your Fort Worth Short Term Rental
Another benefit to investing in short term rentals is that you can use the home yourself, when you want to.
As you’re deciding whether to turn your property into a long term rental home or a short term rental home, it’s not always simply about the money and the work that’s involved. There’s also the question of whether you’ll want to use this home yourself. If you’re moving out of state, maybe you’ll want to use this as a vacation home for yourself once in a while. In that case, a short term rental will be an excellent investment property for you.
Use the property when you need it, and rent it out when you don’t.
We can help you manage your short term rental property, leaving you with more time and resources to do other things. With the constant turnover and marketing, a property management professional can be invaluable. Please contact us at Trend Property & Management. We’re here to help with all your Fort Worth property management needs. We also serve Keller, Saginaw, Hurst, and the surrounding areas.